Aave purchases 2.7M CRV to clear bad debt following failed Eisenberg attack
Based on 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 unhealthy debt” inside 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 unhealthy debt on the Aave protocol resulted from a classy exploit that happened on Nov. 23. Avaraham Eisenberg, who beforehand drained DeFi protocol Mango Markets and brought about $47 million in web damages, took on a collection of heavy quantity brief CRV positions on Aave in an try to orchestrate a brief squeeze and power builders to buyback his positions at upwards of 100% slippage because of lack of liquidity.
Nevertheless, it turned out Aave had rather more liquidity than anticipated, and Eisenberg reportedly misplaced $10 million on the commerce. However, some slippage occurred because of the incident, and Aave was left with a complete of two.656 million CRV in unhealthy debt whereas liquidating Eisenberg’s positions.
The identical day, Mango Markets filed a lawsuit in opposition to Avraham Eisenberg, asking the courtroom 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 Trade 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.
