Some USD Coin (USDC) holders have been fleeing to other stablecoins since March 10 due to solvency fears following the disclosure that a small portion of USDC collateral was held at Silicon Valley Bank.
However, not everyone is successful when it comes to panic selling. One user paid over 2,000,000 USDC to receive $0.05 of Tether (USDT) by spending 3CRV (DAI/USDC/USDT) in USDT.
The KyberSwap aggregation router is used in these transactions. Kyberswap is a decentralized exchange (DEX) that aggregates liquidity from multiple DEXs. In the postmortem, the protocol team explained that “since the market experienced a volatile period, all routes failed in gas estimation. The rate fluctuated a lot & only 0x was a successful route but with a very poor rate.”
After confirming the swap at the 0x level in the pop-up, the bot detected an opportunity and got 2,085,256 USDC from the Univ2 pool. The protocol is in talks with bot creators, bot users and third parties to help recover funds.
Also moving funds to another stablecoin, Tron founder Justin Sun the news withdrew 82 million USDC using the Aave v2 decentralized finance protocol and exchanged it for Dai (DAI), worth almost $75 million.
Wallets associated 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 show. The institution still holds nearly 45 million in USDC.
Curve 3pool stock is the leader of crypto sentiment
During the current USDC depeg, ppl are panic selling USDC & DAI for USDT. USDT shares on 3pool fall to 2%
Ironically, when Tether FUD happened during the Terra crash & FTX collapse, USDT became “famous” & left 85% in 3pool pic.twitter.com/VNo3ykxiob
— Panda Jackson (@pandajackson42) March 11, 2023
USDC prices are slowly recovering after turbulent trading hours on March 11 to trade at $0.97 at the time of publication.
Circle, the company behind USDC, announced its holding of $3.3 billion in Silicon Valley Bank, nearly 23% of its reserves. The bank was closed by California authorities on March 10 after announcing efforts to raise extra capital.
Circle said in a recent statement that USDC liquidity operations will “continue as normal when banks open on Friday morning in the United States,” enabling the redemption of USDC at 1:1 with US dollars.