Huobi co-founder buys 10 million Curve DAO tokens from Curve founder
The Curve founder had taken a $100 million DeFi stablecoin loan using his own CRV stash as collateral.
Curve Finance was recently hacked causing the CRV token to depreciate significantly.
The Huobi co-founder has locked up the tokens as veCRV.
Jun Du, the co-founder of Huobi has bought 10 million Curve Dao tokens Michael Egorov, the Curve founder who is trying to reduce his exposed stablecoin loan positions.
Egorov has so far paid back over $17 million of his stablecoin loans, which has slightly improved the health of the loans as a whole. The DeFi founder, however, still has a heavy debt load, with about $60 million in stablecoins owed on Aave, $12 million on Abracadabra, and about $8 million on Inverse. To add salt to injury, Abracadabra Money has proposed increasing the interest rate on its outstanding loans in order to reduce the risks related to its exposure to Curve DAO (CRV).
Jun Du announced his intention to purchase 10 million CRV tokens in an initial tweet on August 1 at the market price of $0.40, which was established through a number of over-the-counter transactions involving Egorov and several members of the crypto community. In a direct message on Twitter Du confirmed that the purchase was successful and that he had made the decision to lock up the tokens as veCRV.
By locking up the tokens, Jun Du is entitled to voting rights on the Curve platform.
Curve Finance liquidity crisis
Curve protocol was exploited on July 30, resulting in a 30% crash in CRV token price.
Jun Du’s move was in support of Curve protocol which is in a liquidity crisis after the July 30 exploit. Du drew comparisons to his earlier assistance during BendDAO’s liquidity crisis. He emphasised that the current Curve difficulties were temporary and that the industry would profit from support from all sides.
Notably, Du is the co-founder and general partner (GP) of the web3 fund ABCDE in addition to being the CEO of New Huo Tech, a platform for the service of digital assets.