Aave purchases 2.7M CRV to clear dangerous debt following failed Eisenberg assault


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In keeping with a brand new post on Jan. 26, Marc Zeller integrations lead at decentralized finance (DeFi) lending protocol Aave said that the agency bought 2.7 million Curve (CRV) tokens which might clear “extreme remaining dangerous debt” throughout the subsequent 15 hours over a dozen transactions. The transfer follows the group approval of Aave Enchancment Protocol (AIP) 144, which deployed a swap contract that acquires 2,700,000 items of CRV, with a USDC spend restrict of $3,105,000 and max unit worth of $1.15 per CRV token.

The dangerous debt on the Aave protocol resulted from a sophisticated exploit that passed off on Nov. 23. Avaraham Eisenberg, who beforehand drained DeFi protocol Mango Markets and brought about $47 million in internet damages, took on a collection of heavy quantity brief CRV positions on Aave in an try and orchestrate a brief squeeze and pressure builders to buyback his positions at upwards of 100% slippage resulting from lack of liquidity.

Nonetheless, it turned out Aave had way more liquidity than anticipated, and Eisenberg reportedly misplaced $10 million on the commerce. Nonetheless, some slippage occurred on account of the incident, and Aave was left with a complete of two.656 million CRV in dangerous debt whereas liquidating Eisenberg’s positions. 

The identical day, Mango Markets filed a lawsuit towards Avraham Eisenberg, asking the court docket to rescind its $47 million bounty settlement with the hacker for his function within the $117 million exploit on Oct. 12, 2022. The U.S. Securities and Alternate Fee has charged Eisenberg with stealing $117 million in digital property. Eisenberg was arrested in Puerto Rico by the FBI on Dec. 27, 2022, on fees of commodities manipulation and commodities fraud. 

Avraham Eisenberg (proper) throughout an interview | Supply: Youtube; Unchained