What does a short of CRV have to do with an Aave exploit? It may all be connected to one notorious hacker.
Avraham Eisenberg, first swapped 40 million USD Coin on Nov. 13 into decentralized finance protocol Aave to borrow CRV for selling.
In response to the heavy selling activity, a wallet associated with Curve's founder added 20 million more CRV in collateral. On Aave, the wallet addresses' health factor was 1.65 at the time of publication, indicating an excess of collateral against borrowed assets.by blockchain analytics firm Arkham, the trades"may simply be bait," with Aave being the primary target instead.
However, the real conspiracy appears to be exploiting the possibility that Aave cannot cover Eisenberg's CRV short positions, as the platform allegedly does not have enough liquidity to buy back more than 20% of the short. This would then favor bets against Aave and the price decline of its native token:
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