"I don't know that Sun likes to help people, does he have another motive?"
Tron founder Justin Sun acted quickly to buy five million Curve cryptocurrency (CRV) worth $2 million from an address labeled "Curve fi Founder" to help Curve Finance which faced problems immediately after being exploited.
Sun who bought CRV in Tether (USDT) has said that his efforts with Curve Finance founder Michael Egorov are aimed at introducing the stUSDT pool on a decentralized exchange to strengthen user benefits and support the platform.
It is well known that Sun's purchase of CRV occurred when investors were worried about the liquidity of Egorov's $100 million loan that could cause problems in the DeFi ecosystem, but the anxiety increased when Curve Finance was exploited and brought a loss of $47 million.
Following that, several Curve Finance pools that use Vyper, which is smart contract programming for the Ethereum Virtual Machine (EVM), were affected in a re-entry attack on July 30, 2023.
According to crypto research firm Delphi Digital, the loan has been backed by 47% of all CRVs in circulation totaling 427.5 million.
He further added that Egrov borrowed 63.2 million USDT on Aave and pledged $395 million worth of CRV as collateral then he supplied another 59 million CRV against 15.8 million FRAX on Frax Finance.
Although Frax's debt is much lower than Aave's position, Delphi Digital stated that the debt is more risky as interest rates can change at any time and various things can happen.
Earlier today, Egrov deployed the new Curve pool for FraxLend's CRV/FRAX market with 100,000 CRV rewards to mitigate the risk of his debt spiraling out of control.
