USDC’s Depeg: DeFi protocols gaining from the crisis

The misfortune of some is the happiness of others – At the end of last week, the stablecoin USDC is silent discarded from his stallion to dollar. This deviation led to panic in the crypto markets, with investors trying to flee the USDC at all costs. For their part, the liquidity providers seem to be the big winners of this chaotic weekend.

USDC Depeg Causes Big Panic In Markets

At the end of last week, in the wake of the Silvergate bankruptcy, Silicon Valley Bank also showed significant signs of weakness.

Quickly, the news falls: Circlethe company behind USDC, has a amount not disclosed in cash to Silicon Valley Bank. This announcement has the effect of a bomb and part of the crypto industry is preparing to see the fall of the USDC.

Of course, what had to happen happened. I’USDC strayed from its dollar standard throughout the weekend. At lows its course flirted with $0.87.

Finally, with the resumption of banking activities on Monday March 13, the situation recovered and the USDC came to find his peg. Indeed, it would appear that Circle was able to access the $3.3 billion deposited in the SVB.

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Uniswap and Curve: the big winners of depeg

You know the saying “The misfortune of some is the happiness of others”. As Circle was in the midst of turmoil all weekend and investors scrambled to reduce their exposure to USDC, some actors of the ecosystem have spent a gourmet weekend. Sure enough, investors massively traded their USDC across different trading pairs.

Result: the decentralized exchange platform curve To checked in a volume of $6.03 billion, the 11th of March. This is the biggest trading day recorded by Curve since its inception.

Who says big volume says big costs. Therefore, the liquidity providers took full advantage of the situation. They shared more than $4.9 million charges over the past week.

Needless to say. Uniswap encountered a similar situation. The platform recorded a volume of $8.8 billion on the wETH/USDC pair over the weekend. This brought together no less than 100,000 different traders.

THE stablecoin pools were also solicited, with $6 billion in volume for the USDT/USDC pool and $1.4 billion for the DAI/USDC pool. For their part, liquidity providers pocketed $4.7 million in fees on the wETH/USDC pool and $2.4 million on the USDT/UDC pool.

Unfortunately, luck did not smile on everyone. Indeed, a user who was trying to leak the USDC lost $2 million in swap attempt from USDC to USDT.

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