Tron's Justin Sun Pledges Support to Curve Finance

In the aftermath of Curve Finance's recent $47 million exploit and the subsequent plummet in its native token, CRV, Tron founder Justin Sun has stepped forward with a commitment to aid the struggling DeFi platform.

This comes at a critical juncture for Curve as it faces potential liquidation threats.

Sun's announcement offers hope for Curve Finance as it seeks to recover from the recent exploit and strengthen its position in the DeFi ecosystem.

The collaboration between Tron and Curve aims to introduce a liquidity pool leveraging tether stablecoins on the Curve platform, which could potentially enhance user benefits and empower the DeFi community.

On-chain data from Lookonchain revealed that just before Sun's declaration, Curve founder Michael Egorov sold 5 million CRV tokens to Sun through an Over-The-Counter (OTC) deal at an average price of $0.4.

Egorov had also conducted other OTC transactions, including selling 4.25 million CRV tokens to crypto trader DCFGod, 3.75 million to NFT trader Jeffrey Huang, and 2.5 million each to DWF Labs and Cream Finance.

The recent exploit has left Curve Finance in a vulnerable state, resulting in a bearish sentiment and a significant drop in the CRV token's value, hitting a low of $0.50, its lowest point in a year.

Based on what was found on the blockchain, so far Egorov has sold:

• 4.25 million CRV to crypto trader DCFGod,
• 3.75 million to NFT trader Jeffrey Huang, and
• 2.5 million each to DWF Labs and Cream Finance.

And that's not all, there are other additional threats looming in the distance for Curve Finance.

Delphi Digital, an institutional research firm, has raised concerns about a potential liquidation threat on a $100 million loan backed by 427.5 million CRV tokens, accounting for nearly 47% of the total circulating supply.

Egorov's $305 million CRV-backed loan on Aave, totaling $63.2 million USDT, further adds to the risks faced by CRV.

Moreover, Egorov's position as collateral against a 15.8 million FRAX debt on Frax Finance, with an astonishing estimated interest rate of nearly 10,000% APY in just three days, heightens worries about CRV's stability.