Tron Founder Steps in to Save DeFi Platform After $47 Million Exploit

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Tron Founder Steps in to Save DeFi Platform After $47 Million Exploit
  • Tron founder Justin Sun pledges support for struggling Curve Finance after $47 million exploit.
  • Joint efforts will introduce a liquidity pool using stUSDT on Curve.
  • Various institutions and investors also make significant OTC purchases of CRV tokens.

In the wake of Curve Finance’s recent $47 million exploit and subsequent token price plunge, Tron founder Justin Sun has announced his commitment to support the struggling DeFi platform. Sun’s declaration comes at a critical juncture for Curve, as the project faces potential liquidation threats and a plummeting native token, CRV.

Sun’s announcement of assistance to Curve Finance holds promise for the platform as it aims to recover from the recent exploit and strengthen its position in the decentralized finance (DeFi) ecosystem. The joint efforts between Tron and Curve are set to introduce a liquidity pool that utilizes tether stablecoins on Curve, potentially “amplifying user benefits” and empowering the community in the decentralized finance space.
An hour before Sun’s announcement, on-chain data from Lookonchain showed that 5 million CRV tokens were sold by Curve founder Michael Egorov to Sun via Over-The-Counter (OTC) at an average price of $0.4.

Lookonchain has further reported a surge in OTC purchases of CRV tokens by various institutions and investors. According to their data, Machi Big Brother purchased 3.75 million CRV tokens, DWF Labs acquired 2.5 million CRV tokens, and Cream.Finance obtained 2.5 million CRV tokens.

Prior to the reported above transactions, it was also revealed that another deal was made by Egorov with DCF God, amounting to 4.25 million CRV, at an average price of $0.4 via OTC again.

The recent exploit that led to the loss of $47 million has put Curve Finance in a precarious position. The resulting bearish sentiment has caused the CRV token to plummet, reaching a low of $0.50, its lowest point since the previous year.

Delphi Digital, an institutional research firm, has also warned about a potential liquidation threat on a $100 million loan backed by 427.5 million CRV tokens, which make up almost 47% of the total circulating supply. Egorov’s $305 million CRV-backed loan on Aave, totaling $63.2 million USDT, adds to the risks faced by CRV.

Furthermore, Egorov’s position as collateral against a 15.8 million FRAX debt on Frax Finance, with an estimated interest rate of nearly 10,000% APY in three days, has raised further concerns about the potential consequences on CRV’s stability.

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