Defi protocols are facing it's biggest test ever as multiple protocols have been exploited in the past days and curve founder Michael Egerov's $168m loan is nearing his liquidation threshold.

Multiple defi protocols have been drained in the past week due to the rentrancy bug on the code, including curve and alchemix. Other than that we also had mass rugs on base chain and base chains main dex exploited for over 300 eth resulting in the team stopping all trading until further notice.

The bigger worry right now for defi is that Egorov will be liquidated resulting in bad debt for many protocols including aave. Egerov supplied over 30% of the curve supply to borrow stablecoins which he cashed out to buy a $40 million home in Australia. His position is now being hunted with his liquidation price publicly known to be $0.4.

He is struggling to repay his loans and have even started selling more curve OTC to people like Justin sun at a large discount so he can continue repaying his loans. As of now, the whole situation is still troublesome.