📉 CRV dipped to all-time low; Tether announced new stablecoin aUSDT
📉 CRV dipped to all-time low; Tether announced new stablecoin aUSDT$CRV dips to all-time low due to its founder’s massive liquidations. Tether releases new stablecoin aUSDT backed by its XAUT. Ronin announces its zkEVM chain built on top of Polygon CDK.
Weekly DeFi IndexThis week's market capitalisation index was negative at -4.44%, while the volume and volatility indices were positive at +8.80% and +27.72% respectively.
Chart of the WeekThe Curve protocol has been roiled by the liquidation of loans tied to its founder, Michael Egorov. Data showed that Egorov's addresses have taken out a cumulative loan of nearly $100 million worth of stablecoins, mostly crvUSD, against $140 million in CRV collateral. This led to a 30% slide in the price of CRV with a new all-time low of approximately $0.23 on 13 June. As the price of CRV fell, these loans started getting automatically liquidated, leading to a spike in selling pressure on the token. Egorov acknowledged on X that his positions were liquidated with $10 million of bad debt incurred on the protocol, but said he has already repaid 93% of the loans and intends to repay the rest soon. This is not the first time that Egorov's borrowed positions have created ripples in the market. Last year, Egorov borrowed $60 million worth of loans from the Aave lending protocol, which threatened to leave Aave with bad debt if Egorov was liquidated. A proposal to freeze the CRV market on Aave was passed in August 2023 to prevent the CRV token from being used to back new loans. In the same month, Egorov took action to pay down his debts. He sold 106 million CRV tokens in private deals for $46 million, using the proceeds to pay off the majority of his outstanding loans on Aave and other lending platforms. Egorov was then able to fully close out his debt to Aave in September 2023 by depositing 11 million USDT. The yield optimiser Convex Finance’s CVX token saw a significant surge that may be attributed to the recent liquidation of Curve Finance’s founder. Convex Finance offers enhanced yield opportunities for CRV holders. By locking CRV tokens in Convex, users can earn veCRV, which grants them access to increased trading fees and a share of Curve's trading revenues. This mechanism attracts liquidity providers and incentivises them to stake their tokens in Convex, thereby increasing demand for CVX. News Highlights
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