Du Jun, co-founder of Huobi, has acquired 10 million Curve DAO tokens (CRV) for $4 million from Curve Finance founder Michael Egorov. The transaction was initiated by Egorov to reduce his exposed loan position.
Du Jun announced his intention to buy the CRV tokens through an August 1 tweet. He purchased the tokens at a market price of $0.40, which was determined through off-market exchanges involving Egorov and various members of the cryptocurrency community. The transaction has been confirmed , and Du Jun has decided to lock the tokens into veCRV, granting him voting rights on the platform.
The Huobi co-founder expressed his support for Curve on X (formerly Twitter), noting his prior assistance during BendDAO's liquidity crisis. He stated that the challenges faced were temporary and emphasized the importance of collective industry support. Du Jun is also the CEO of New Huo Tech, a digital asset service platform, and a co-founder of Web3 fund ABCDE.
Egorov had applied for a $100 million stablecoin loan using his CRV reserves as collateral. However, the protocol suffered an exploitation incident on July 30, causing CRV prices to plummet by 30%. Despite successfully repaying over $17 million in stablecoin loans, Egorov still carries a significant debt load, with approximately $60 million owed to Aave, $12 million to Abracadabra, and $8 million to Inverse. In response, Abracadabra Money proposed increasing the interest rate on its outstanding loans to mitigate the risks associated with CRV.
The governance token of decentralized finance protocol Aave, known as AAVE, experienced a 17% decline between July 30 and August 1, with its value dropping to $62. This decrease was influenced by concerns surrounding cascading liquids of DeFi protocols trigger ed by the recent security breach in Curve Finance.
