Following the Curve Finance hack on Sunday, Justin Sun announced to step up and save the DEFI protocol. The hackers who stole over $70 M resulted in the platform’s coin dropping by 30%. In an interesting turn of events, TRON founder Justin Sun bought $2 million worth of CRV tokens to save the platform. He posted on X, expressing his enthusiasm for assisting Curve! “As steadfast partners, we remain devoted to offering support whenever it’s required.”
Michael Egorov, the Founder of Curve, revealed to our crypto respondents at Cryptogurru that the CRV tokens in question will be locked for a period exceeding six months, effectively preventing any instances of reselling or token transfers.
Curve Finance plummeting price action does not look good at all
Egorov’s motivation for striking these deals arises from his significant involvement in the DeFi space. As the founder of Curve Finance, he said the DEFI holds more than $100 million in DeFi loans, backed by an impressive 427.5 million CRV tokens, with an approximate value of $252 million. Egorov’s borrowing activity stands at almost $60 million in stablecoins on Aave alone. Hence, there’s a risk of potential liquidation if the value of CRV collateral continues to decline. Such an event could have severe repercussions for the DeFi protocol and most probably result in a Chapter 11 filing.
Sun recently revealed a collaborative effort with Curve Finance to introduce a stUSDT pool on Curve. In the TRON ecosystem, stUSDT functions similarly to stETH on the Lido protocol. It serves as evidence that the holder has invested in real-world assets (RWAs), offering the opportunity to earn passive income from these assets.
The protocol operates in a manner akin to receiving royalties or dividend payments. As of the present time, stUSDT stands as the leading real-world asset DeFi protocol, boasting a remarkable deposit amount of over $435 million.
Final remarks
Curve Finance leverages smart contracts to function as automated market makers, facilitating token swaps. Its standout feature is its low slippage, which makes it highly appealing to stablecoin traders. Liquidity providers play a key role and are incentivized with trading fees for contributing liquidity to the protocol. These rewards are obtainable through pool tokens that represent their respective shares in the liquidity pool.
After the FTX meltdown, Justin Sun did come out as the project’s saviour. While not much amounted from his efforts to salvage what had remained of FTX, it seems the Grenada ambassador to the World Trade Organization is back at it once more.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
