Connect with us

Cryptocurrencies News

Huobi’s Jun Du acquires 10 million CRV tokens to support Curve

Jun Du, the co-founder of Huobi, has purchased 10 million Curve DAO Tokens (CRV) for $4 million from Curve Finance founder Michael Egorov, who is seeking to decrease his exposed loan position.

In a tweet on Aug. 1, Du revealed his intention to acquire 10 million CRV tokens at the prevailing market rate of $0.40 — a value established through various over-the-counter transactions involving Egorov and several members of the crypto community. A report in The Block states that Du confirmed via direct message on X (formerly Twitter) that he completed the purchase and decided to lock up the tokens as veCRV, giving him voting rights on the platform.

Screenshot showing Jun Du’s 10 million CRV token transaction. Source: Etherscan

The co-founder took to Twitter and expressed his support for Curve, drawing parallels to his previous assistance during BendDAO’s liquidity crisis. He emphasized that the existing challenges were transitory and that he believed the industry would benefit from collective support. Notably, Du holds positions as the CEO of New Huo Tech, a digital assets service platform and serves as a co-founder and GP at the web3 fund ABCDE.

The Curve founder took out a $100 million DeFi stablecoin loan using his own CRV stash as collateral. However, the protocol was exploited on July 30, resulting in a 30% crash in CRV prices.

Related:Curve emergency DAO terminates rewards for hack-related pools

As per Debank, Egorov has managed to repay over $17 million in stablecoin loans, leading to a marginal improvement in the overall health of the loans. However, despite this progress, the DeFi founder still faces a significant debt burden, with approximately $60 million in stablecoins owed on Aave, $12 million on Abracadabra and around $8 million on Inverse. To mitigate the risks associated with its exposure to Curve DAO (CRV), Abracadabra Money has suggested raising the interest rate on its outstanding loans.

The AAVE token, which serves as the governance token for the decentralized finance (DeFi) Aave protocol, saw a significant drop of 17% from July 30 to August 1, bringing its value down to $62. This decline was attributed, in part, to concerns about cascading liquidations on DeFi protocols triggered by the recent exploit in the Curve Finance pool.

Magazine: Cryptocurrency trading addiction: What to look out for and how it is treated