X user DeFi Made Here claimed that Curve still contains a “systemic risk” that could compromise its entire ecosystem.
The systemic risk that lies at the heart of the Curve Finance protocol has not been completely resolved, and the protocol will face “one more stress test” in February, according to a Jan. 8 report from pseudonymous crypto investment analyst and X user DeFi Made Here.
According to the report, a large number of Curve (CRV) tokens will become tradeable in the coming weeks, and the sale of these tokens may lead to “a similar situation which happened back in August” where the CRV token threatened to collapse in price. However, DeFi Made Here also cautioned that this scenario is only a possibility.
However, DeFi Made Here also claimed that this scenario was only a possibility. Patryn could be a “good actor.” In which case, “He will simply repay his CRV debt, will continue providing liquidity for [Egorov], and OTC buyers won’t do smth similar.” The analyst expressed hope that this optimistic scenario will play out and that “the upcoming events won’t hurt Curve and CRV design limitations will allow the ecosystem to sustain.”
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Source: https://cointelegraph.com/news/curve-finance-debt-cause-one-more-stress-test-february-analyst