Insolvency fears led many to turn to other stablecoins, sell USDC at a major discount

Amid fears surrounding its solvency after it was revealed that a small portion of USDC’s collateral was held by Silicon Valley Banks, some USD Coin (USDC) holders have since March 10 escaped to other stablecoins.

However, not all were successful in panic selling. One user put a large amount of her 3CRV (DAI/USDC/USDT) into her USDT to pay her over 2,000,000 USDC and receive $0.05 of her Tether (USDT).

A KyberSwap aggregation router was used in the transaction. Kyberswap is a decentralized exchange (DEX) that aggregates liquidity from multiple DEXs.In the postmortem, the protocol team explained “As the market was going through a period of instability, all routes failed to quote gas. “

After seeing a swap at a rate of 0x in the popup, the bot detected an opportunity and won 2,085,256 USDC from that Univ2 pool. The protocol is in discussion with bot creators, bot users, and third parties to help collect funds.

Tron Founder Justin Sun to Move Funds to Other Stablecoins reportedly 82 million USDC was withdrawn using the decentralized financial protocol Aave v2 and exchanged for $75 million worth of Dai (DAI).

A wallet affiliated with IOSG Ventures sold 118.73 million USDC at 105.67 million USDT and sold 2,756 Ether (ETH) worth $3.98 million via 3 addresses, on-chain data. showThe institution still holds close to 45 million in USDC.

The price of USDC is slowly recovering after the turbulent trading hours on March 11th, trading at $0.97 at the time of issuance.

Circle, the company behind USDC, has revealed it has $3.3 billion in Silicon Valley banks. This is almost 23% of reserves. The bank was shut down by California authorities after revealing additional funding efforts on March 10.

In a recent statement, Circle said USDC liquidity operations “will resume as normal when banks open on Monday morning in the United States,” allowing USDC to be redeemed 1:1 with the US dollar.