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It seems that Justin Sun is getting involved to support Curve Finance, a DeFi protocol on Ethereum, following a serious hack on Sunday. But there are questions about whether he is merely buying tokens or providing further assistance.
On July 30, a hacker exploited Curve Finance, resulting in the theft of over $70 million. A big portion of the stolen funds are in the protocol’s governance token, CRV. The exploit knocked 30% off of the CRV price in the immediate aftermath.
Justin Sun Steps Into the Breach
However, Justin Sun, known for rescuing troubled projects in the crypto industry, is stepping in to help once more. The TRON founder bought five million CRV tokens for $2 million, 32% lower than the market value.
“Excited to assist Curve!,” he posted on X. “As steadfast partners, we remain committed to providing support whenever needed.”
Michael Egorov, Curve’s Founder, told DL News that the CRV tokens involved will be locked for more than six months. Preventing resale or transfer of the tokens.
Ergorov also sold 4.25 million CRV to crypto trader DCFGod, and 3.75 million CRV to NFT owner Jeffrey Huang (Machi Big Brother). As well as 2.5 million CRV to crypto investors DWF Labs, and 2.5 million CRV to DeFi project Cream Finance.
Why is Egorov making these deals? Well, the Curve Finance founder currently has over $100 million in DeFi loans backed by 427.5 million CRV tokens, valued at approximately $252 million.
Egorov has borrowed nearly $60 million in stablecoins on Aave alone. If the value of his CRV collateral continues to fall, it may face liquidation. The knock-on effects for DeFi protocols could be severe.
Curve to Establish a stUSDT Staking Pool
Sun also announced that together with Curve Finance, they would be introducing a stUSDT pool on Curve. stUSDT is a token in the TRON ecosystem, similar to stETH on the Lido protocol. It acts as proof that you have invested in real-world assets (RWAs), and by holding stUSDT, you can earn passive income from these assets.
The protocol works much like receiving royalties or dividend payments. At the time of writing, stUSDT is the top real-world asset DeFi protocol with over $435 million of deposits.
Curve Finance uses smart contracts as automated market makers to enable token swaps. The project is known for low slippage, making it favorable for stablecoin traders. Liquidity providers are rewarded with trading fees for supplying liquidity to the protocol, accessible through pool tokens representing their share of the pool.
The replies were filled with comments of “Your Excellency,” a jokey nod to Sun’s former status as an ambassador to the World Trade Organization for the Granada Government. Sun ended his tenure as a trade representative on 31 March 2023. Holders of ambassadorial posts of this kind are typically given the honorific, “Your Excellency,” while in post.
Sun Recently Accused of Purchasing True (TUSD)
Sun enjoys giving the impression that he is a savior of the crypto industry. Immediately after the collapse of FTX, Sun appeared to offer a lifeline after Binance withdrew its own rescue plan. However, nothing came of the proposed deal.
In the case of Curve Finance, Sun may also be up to something else. Aside from his savior complex, Sun has also been accused of secretly buying other crypto projects.
In a lawsuit filed on July 17, the founder of Archblock accused the Chinese-born entrepreneur of acquiring True (TUSD). Sun has battled these rumors for years, but the formal allegation adds weight to the hearsay.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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