- The Curve founder had taken a $100 million DeFi stablecoin loan using his own CRV holdings as collateral.
- Curve Finance was recently exploited, causing the CRV token to drop sharply in value.
- Huobi co-founder Jun Du has locked the purchased tokens as veCRV.
Jun Du, co-founder of Huobi, has acquired 10 million Curve DAO (CRV) tokens to support Michael Egorov, the Curve founder working to repair his leveraged stablecoin positions.
Egorov has repaid more than $17 million of his stablecoin loans so far, which modestly improved the overall health of those obligations. However, he still carries a substantial debt burden: approximately $60 million in stablecoins on Aave, around $12 million on Abracadabra, and roughly $8 million on Inverse. Compounding the pressure, Abracadabra Money has proposed raising interest rates on its outstanding loans to mitigate risks tied to its exposure to Curve DAO (CRV).
On August 1, Jun Du announced via an initial tweet his intention to buy 10 million CRV tokens at a market price near $0.40. The price was set through a series of over-the-counter transactions involving Egorov and several members of the crypto community. In a direct message on Twitter, Du confirmed the purchase and stated that he would lock the tokens as veCRV.
By converting the tokens to veCRV, Jun Du gains voting power within the Curve governance system, allowing him to participate in decisions affecting the protocol.
Curve Finance liquidity crisis
On July 30, the Curve protocol was exploited, triggering roughly a 30% drop in the CRV token price and straining the protocol’s liquidity. That incident intensified market pressure on leveraged positions backed by CRV and created broader concern across DeFi platforms exposed to the token.
Jun Du’s purchase is positioned as a show of support for Curve during this liquidity squeeze. He compared the action to prior interventions he made during BendDAO’s liquidity problems and stressed that Curve’s current difficulties are likely temporary. Du argued that coordinated support from ecosystem participants can help stabilize the protocol and benefit the wider industry.
In addition to his role as Huobi co-founder, Jun Du is co-founder and general partner (GP) of the web3 fund ABCDE and serves as CEO of New Huo Tech, a company offering services for digital asset management.