Many USDC holders have fled to other stablecoins since March 10 amid concerns about their solvency after it was revealed that a small portion of USDC collateral was held in a Silicon Valley bank.
However, not all of them were successful during the panic sale. One user paid over $2,000,000 USD to receive $0.05 Tether (USDT) by dumping a large sum of 3CRV (DAI/USDC/USDT) into USDT.
A KyberSwap aggregation router was used in the transaction. Kyberswap is a decentralized exchange (DEX) that pools liquidity from multiple DEXs. At autopsy, protocol team to explain that “Because the market was going through a volatile period, all methods failed to estimate gas. The rate fluctuated heavily and only the 0x path was successful but at a very poor rate.”
After confirming the swap at a rate of 0 x in a popup, the bot detected the opportunity and acquired $2,085,256 from the Univ2 pool. The protocol is in talks with the bot creator, the bot user, and third parties to help with refunds.
Funds also moved to other stablecoins, Tron founder Justin Sun It said Withdraw $82M using DeFi protocol Aave v2 and exchange it for Dai (DAI), worth approximately $75M.
IOSG Ventures related portfolios sold $118.73M for $105.67M, plus 2,756 Ether (ETH) worth $3.98M across three addresses, on-chain data Offers. The foundation still owns nearly 45 million US dollars.
Curve 3pool stock is the leader in crypto sentiment
During today’s USDC sell ppl panic sold USDC and DAI for USDT. USDT stake in 3pool collapsed to 2%
Ironically, when the Tether FUD happened during the Terra crash and the FTX crash, USDT was the “notorious” 85% left in the 3pool pic.twitter.com/VNo3ykxiob
– Panda Jackson (@pandajackson42) March 11, 2023
The price of the US dollar is slowly recovering after the turbulent trading hours of March 11 to trade at $0.97 at press time.
Circle, the company behind USDC, revealed that it holds $3.3 billion in Silicon Valley Bank, which is roughly 23% of its reserves. The bank was shut down by California authorities on March 10 after efforts to raise additional capital were revealed.
In its latest statement, Circle said that USDC liquidity operations “will resume as normal when banks open on Monday morning in the US,” enabling USDC to be redeemed at 1:1 with the US dollar.