On Tuesday, CRV, the Curve DAO Token, faced a tremendous 24% drop. And this might be due to a coordinated operation against CRV. We can say that CRV, the Curve Finance tokens, faced a massive short sale. The attack in question took place over the AAVE protocol. Whales borrowed Curve DAO Tokens from AAVE, the open-source liquidity protocol, and then put them up for sale on crypto asset platforms.
In short, several whales had borrowed large amounts of CRV from AAVE, the cryptocurrency lending and withdrawal network, and they put them up for sale on other crypto asset platforms, causing the price of CRV to drop. And they must repay the CRVs they borrowed from AAVE. However, they make a profit by buying cheap and paying off their debts.
Curve (CRV), one of the biggest DeFi platforms, saw big exits between November 8 and 13, after the bankruptcy of FTX, injecting volatility and uncertainty into the markets. The total value locked in Curve dropped to 3.78 billion USD, the lowest point since February 2021. It can be said that CRV is a dividend-paying stock of Curve, the decentralized exchange. Michael Egorov, founder of Curve Finance, has $48m worth of CRVs with a liquidation price of 0.259 USD on AAVE.
