TechFlow reports that Gauntlet, a DeFi risk management platform, has proposed to the Aave governance community to freeze the loan position of CRV tokens in Michael Egorov's wallet address—the founder of Curve Finance.
The account reportedly heavily relies on CRV as collateral. According to on-chain data, it has borrowed approximately $63 million in USDT, using 288 million CRV tokens (worth around $180 million) as collateral.
These tokens represent over 30% of CRV’s circulating supply. If liquidity for these tokens declines on exchanges and results in bad debt, it could impact overall market stability. Therefore, Gauntlet recommends freezing these tokens.
Currently, the account’s health score stands at 1.6—while there is no immediate risk of liquidation, Gauntlet warns of potential future risks. Additionally, given the recent decline in CRV liquidity, continued use of CRV as collateral may pose further risks.
