The Curve DAO ecosystem is currently facing challenges as its founder, Michael Egorov, confronts the looming prospect of liquidation. Egorov's substantial holdings in CRV, utilized as collateral for stablecoin loans amounting to $95.7 million, are under threat due to the sharp drop in CRV's value. This depreciation has triggered a series of liquidations and a notable rise in CRV balances on exchanges, instigating concerns about the ecosystem's stability. In contrast, Frax Finance's meticulous liquidation strategies have shielded it from bad debt instances amidst the turbulent market conditions. The downward trend in CRV's price accentuates the risk of cascading liquidations and poses challenges to the overall well-being of the Curve DAO ecosystem.