{"id":43834,"date":"2023-08-03T03:51:42","date_gmt":"2023-08-03T07:51:42","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-billionaire-justin-sun-and-partners-step-in-to-aid-defi-giant-curve-amid-crisis-heres-the-latest\/"},"modified":"2023-08-03T03:51:43","modified_gmt":"2023-08-03T07:51:43","slug":"crypto-billionaire-justin-sun-and-partners-step-in-to-aid-defi-giant-curve-amid-crisis-heres-the-latest","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=43834","title":{"rendered":"Crypto Billionaire Justin Sun and Partners Step in to Aid DeFi Giant Curve Amid Crisis \u2013 Here’s the Latest"},"content":{"rendered":"
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Tron founder and wealthy crypto investor Justin Sun has stepped up to save decentralized exchange (DEX) protocol Curve Finance from a potential bad debt crisis.<\/p>\n

On Tuesday, blockchain data<\/a> showed that the billionaire had bought 5 million Curve tokens (CRV) from a wallet tagged \u201cCurve.fi Founder\u201d at an average price of $0.4, amounting to about $2.3 million in total. That was well below the token\u2019s market price of $0.58, but still above Curve founder Michael Egorov\u2019s liquidation level at $0.37.<\/p>\n

Sun confirmed his support in a tweet on Tuesday, stating that he remained committed to providing the protocol with support, where needed.<\/p>\n

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\u201cOur joint efforts will introduce an @stusdt pool on Curve, amplifying user benefits,\u201d added Sun. \u201cTogether, we aim to empower the community and forge decentralized finance.\u201d<\/p>\n

Curve Finance specializes in stablecoins swaps using an automated market maker (AMM) for liquidity management. Like many DeFi protocols, the project is overseen by a decentralized autonomous organization (DAO) whereby CRV token holders vote on major governance decisions, and is used to incentivize liquidity providers.<\/p>\n

The protocol suffered an exploit on Sunday allowing roughly $70 million in crypto to be drained across multiple liquidity pools. Though the damage has since been contained, the hack caused CRV\u2019s price to plummet, putting Egorov\u2019s $167 million CRV stash at risk of liquidation.<\/p>\n

A liquidation of that size could further crater CRV\u2019s price, leading to cascading liquidations across the ecosystem for other traders using CRV as collateral.<\/p>\n

Other Traders Involved<\/h2>\n

Sun wasn\u2019t the only one to provide aid: blockchain data showed several other traders receiving large sums of CRV from Ergorov\u2019s wallet, after Sun\u2019s purchase.<\/p>\n

One was Crypto investor Jeffrey Huang (aka Machi Big Brother) who bought 3.75 million tokens. Others included crypto fund DWF Labs and DeFi protocol which each bought 2.5 million CRV.<\/p>\n

In total, Ergorov dished out 39.25 million CRV tokens through over-the-counter trading, raising $15.8 million.
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