DeFi Faces Pressure from CRV Liquidation

Curve Protocol's $95.7M CRV liquidation led to a 30% token drop, while Binance and OKX face policy and security challenges, impacting market dynamics.

DeFi Faces Pressure from CRV Liquidation

CRV liquidation

Michael Egorov, founder of Curve protocol, borrowed $95.7 million USD stablecoins (mainly crvUSD) across 5 accounts by mortgaging $141 million USD CRV tokens, and is liquidated on June 13, so CRV token dropped by 30%.

Main address: https://debank.com/profile/0x7a16ff8270133f063aab6c9977183d9e72835428

Some people say it's another LUNA, but this looks to me nothing like LUNA, but more like coin dumping.

Binance updated MSA policy

The previously announced asset based fee is downgraded Account Maintenance Fee

  • A fixed fee of 500 USDT to each MSA.
  • Applicable for all MSA with a monthly average asset balance of less than 100,000 USD equivalent.

So basically this is cancelled, which is great.

Market interprets this as a compromise from Binance, so BNB/BTC shows

My own interpretation is that Binance is going too far trying to introduce a complicated rule that could cover all scenarios. As such a market leader, they could have been cooler, just announce cancelling all the maker and taker programs (like OKX). Simple is safe, isn't it?

After all, the most important thing for investment firms to decide how to optimize their fees, since now DMA prime brokers cannot provide best fees as before, then what?

  1. Use Ceffu custody and MirrorX function to use trading firm's native fee tier
  2. Still use MSA, but use MSA to use trading firm's fee tier
  3. Change trading style from mid-high frequency to lower frequency
  4. Migrate strategy to OKX and Bybit

OKX account security concern

Since there's user announced their asset in OKX got hacked, more research has been published, e.g.,

https://x.com/dilationeffect/status/1800116534133792841 and https://x.com/crypto_xxxx/status/1800476054831976528

The currently known information includes:

  1. In some cases hacker added new withdraw whitelist address to just withdraw assets, while other cases hacker added new trading API key to do wash trading.
  2. Before/when the assets were transferred/wash traded, some users received a series of SMS and email verification codes from OKX, but some not.
  3. The users have their mobile phone, SIM card, and GA code (if they have set) under proper control

From more group chat discussions, people suspect there's insider spy that steals email and SMS verification codes from the database. As those codes are sent from centralized service, and the service provider or the admin to the service provider is able to see those from the centralized database. Another direction is hackers use AI video to cheat the face recognition system and manage to change passwords.

OKX boss Star Xu responded on X to comfort users with a series of tweets, but again he emphasized OKX will only be responsible for the loss caused solely by OKX. Meanwhile OKX seemed to have taken technical actions immediately. E.g., my OKX account on PC browser was always automatically logged in but now forced to re-login again.


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