A few dollar coin (USDC) owners have fled to other stablecoins since March 10 amid fears about its solvency following the revelation that a small portion of USDC collateral was held in a Silicon Valley bank.
However, not everyone was successful in panic selling. One user paid over 2,000,000 USDC to get $0.05 Tether (USDT) by injecting a large amount of 3CRV (DAI/USDC/USDT) into USDT.
The KyberSwap aggregation router was used in the transaction. Kyberswap is a decentralized exchange (DEX) that aggregates liquidity from several DEXs. In the autopsy, the protocol team explained that “since the market was going through a period of volatility, all routes failed to estimate gas. The rate fluctuated wildly and only route 0x was successful, but with a very poor rate.”
After confirming the exchange at 0x rate in the popup, the bot detected an opportunity and received 2,085,256 USDC from that Univ2 fund. The protocol is in negotiations with the bot creator, bot user and third parties to help recover the funds.
Also shifting funds to other stablecoins is Tron founder Justin Sun allegedly withdrew 82 million USDC using the Aave v2 decentralized financial protocol and exchanged it for Dai (YES AND), worth almost $75 million.
Wallets affiliated with IOSG Ventures sold 118.73 million USDC for 105.67 million USDT, as well as 2,756 Ether (ETH) worth $3.98 million via three addresses, on-chain data emissions. The institution still holds nearly 45 million USDC.
The share of the 3pool curve is the main one for crypto sentiment
During today’s USDC depeg, ppl panic sold USDC & DAI for USDT. USDT share in 3pool drops to 2%
Ironically, when the Tether FUD happened during the Terra crash and FTX collapse, USDT was “notorious” and left 85% in 3pool pic.twitter.com/VNo3ykxiob
— Panda Jackson (@pandajackson42) March 11, 2023
The price of USDC is slowly recovering after the turbulent trading hours on March 11 to trade at $0.97 at press time.
Circle, the company behind USDC, revealed he was holding $3.3 billion in a Silicon Valley bank, almost 23% of its reserves. The bank was closed by California authorities March 10 after disclosing efforts to raise additional capital.
Circle he said in a recent statement that USDC liquidity operations will “continue as normal when banks open Monday morning in the United States,” which will allow USDC to be redeemed 1:1 against the US dollar.