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Jun Du, co-founder of Huobi, has acquired 10 million Curve DAO Tokens (CRV) for $4 million from Curve Finance founder Michael Egorov, who is aiming to reduce his leveraged loan exposure.
In a tweet dated Aug. 1, Du announced his plan to purchase 10 million CRV tokens at the current market price of $0.40 — a rate determined through multiple over-the-counter deals involving Egorov and various members of the crypto community. A report from The Block indicates that Du confirmed through a direct message on X (formerly Twitter) that he finalized the acquisition and opted to lock the tokens as veCRV, granting him voting rights on the platform.
Screenshot showing Jun Du’s 10 million CRV token transaction. Source: Etherscan
The Huobi co-founder took to X to express his backing for Curve, referencing his prior support during BendDAO’s liquidity challenges. Du remarked that the current difficulties are temporary and that he believes the sector would gain from unified support. Additionally, Du serves as the CEO of New Huo Tech, a digital asset service platform, and is a co-founder of the Web3 fund ABCDE.
Egorov secured a $100 million stablecoin loan using his CRV holdings as collateral. However, the protocol faced an exploit on July 30, leading to a 30% decline in CRV prices.
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As per Debank, Egorov has successfully repaid over $17 million in stablecoin loans, resulting in a slight enhancement in the overall condition of the loans. Nevertheless, he continues to bear a substantial debt load, with around $60 million in stablecoins owed on Aave, $12 million on Abracadabra, and approximately $8 million on Inverse. To address the risks linked to its exposure to CRV, Abracadabra Money has proposed increasing the interest rate on its outstanding loans.
Aave (AAVE), which functions as the governance token for the decentralized finance (DeFi) protocol Aave, experienced a notable decline of 17% from July 30 to August 1, reducing its value to $62. This drop was partly attributed to worries about cascading liquidations on DeFi protocols triggered by the recent Curve exploit.
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