The Aave DAO, which is the decentralized autonomous organization responsible for Aave’s lending protocol, has approved a governance decision to purchase $2 million worth of Curve tokens. The Aave DAO will use USDT from its treasury to purchase $2 million worth of Curve tokens. The transaction will be conducted over the counter with Michael Egorov, who is the founder of Curve Finance.
The Proposal Was Well Received by the Community
The proposal was presented by Marc Zeller, the founder of the Aave Chan Initiative, and was approved with 57% of the votes in favor. The tokens that were obtained will be used for staking on the Curve Finance platform, to enhance the liquidity of Aave’s GHO stablecoin.
By staking the tokens on Curve Finance, one of the biggest decentralized exchanges, Aave will gain voting rights on the platform. This will allow Aave to have a say in how token rewards and governance are distributed on the platform, including how new CRV rewards are allocated to specific liquidity pools.
The proposal stated that “These tokens can be used to boost GHO liquidity by locking them to earn Curve voting power and support a gauge that is specific to GHO.”
The purchase of Curve tokens by the Aave community is probably part of a series of recent over-the-counter transactions that Michael Egorov has done with prominent figures in the crypto industry. Some of these include Huobi’s co-founder Jun Du, who bought 10 million CRV tokens, Tron’s founder Justin Sun, who acquired 5 million CRV for $2 million, and crypto exchange Binance, which invested $5 million in Curve tokens.
Michael Egorov, who is the founder of Curve Finance, has been conducting large-scale sales of Curve tokens through transactions that are not conducted on an exchange, but rather over-the-counter.
The goal of these sales is to help him pay off his significant loan obligations, which total around $47 million and are spread across various DeFi protocols. Aave is one of Egorov’s major creditors, with his debt to the project estimated at $20 million.
According to on-chain data collected by Spotonchain on Dune Analytics, Egorov has sold more than 157.5 million CRV tokens so far, for a total value of $47.4 million.
