What’s happening on chain after the Curve exploit

As we know, Curve has been hacked due to a bug in the code compilator of certain smart contracts.
4 liquidity pools have been drained, the biggest being CRV-ETH. This led to a series of problems in the DeFi space.

The founder of Curve, Michale Egorov, opened many borrowing positions to obtain liquidity before the hack, collateralizing his CRV. The biggest of these positions is on Aave and weights approximatly 100 million dollars. The main issue is that if the hacker sold the CRV stolen from the liquidity pool, we could see a great decrease of CRV's price and, if it were to reach 0.37$, it would mean liquidation for Curve's founder. Then, he could have troubles giving back what he borrowed from the various DeFi platforms, thus genereting "bad debt": a debt that spreads through DeFi and that cannot be repayed.

Curve's founder is now trying to solve the problem with over the counter sells of CRV. Over the counter (OTC) means you privately sell your coins to someone else without impacting the market. This is usually done at a discount compared to current market price but can allow you to obtain quick liquidity, in the form of stable coins, without risking to depreciate the asset you care about (CRV in this case). Egorov sold approximatly 24 million $ of CRV in the last two days and the OTC buyers include Justin Sun, Stake DAO and Yearn Finance's treasury.

Currently, CRV is well above that price, but I think it's a relevant situation to keep an eye on.

Credit to Lookonchain Twitter account for providing the transactions' data