This is an interesting case to observe because it’s possible that this debt has no intention of ever being paid off, as in it may be a form of profit taking.
Considering that the wallet is tagged as belonging to the founder of Curve, this would be a way to take profit that:
- Doesn’t harm CRV market value or optics of “founder selling”
- Is more economically efficient (eg. eat slippage via debt LTV vs trying to market sell that amount)
- Is tax optimized (or delayed)
Doesn’t sound like too bad of a profit taking strategy from his vantage point to be honest.
It’s definitely an edge-case in terms of intended product use case here, but I think this is a fair assumption of what might be going on here. I mean he did recently purchase a $60M mansion right?
As much as I love Curve as core pillar of defi and liquidity, I think this is a fair risk assessment considering the available liquidity in the market and risk of eating bad debt until CRV liquidity grows deeper.