Michael Egorov, the founder of Curve Finance, is teetering on the edge of a financial precipice, because his on-chain loans, backed by the Curve DAO token (CRV), are close to liquidation, a situation exacerbated by previous liquidations of other positions earlier this week.

The price of Curve DAO (CRV), the token associated with the decentralized exchange, has dropped over 25% in the past 24 hours. According to The Block's price page, CRV trades at $0.262 as of the time of writing. This price decline puts Egorov's loans on lending protocols at significant risk.

In a bid to stave off the threat of liquidation, Egorov has used his 111.87 million CRV, valued at $33.87 million, as collateral. He has also strategically managed his $20.6 million debt across four platforms: Inverse, UwU Lend, Fraxlend, and Curve's LlamaLend.

Earlier today, Egorov's position on Inverse was at risk of liquidation, but he swiftly mitigated the danger.

"Egorov's position on Inverse currently has a health rate of 1.07, where liquidation is typically triggered when the number reaches one."

On-chain data reveals that Egorov has repaid the borrowed stablecoin DOLA to improve his position on Inverse. However, his loan on UwU Lend remains underwater, adding to his financial woes.

Blockchain intelligence firm Arkham had already forecasted these troubles. On Wednesday, Arkham reported that Egorov's CRV positions worth $140 million were nearing liquidation.

They added that the Curve founder is paying $60 million in annualized rates to maintain his position on LlamaLend. A mere 10% drop in CRV's value could trigger Egorov's positions to be liquidated.

In August 2023, Egorov took steps to mitigate potential liquidation risks. He sold 106 million CRV for $46 million in deals to reduce his outstanding debt across various DeFi platforms, including Aave.

Despite these efforts, the current market conditions have again put him in a vulnerable position.