Stablecoin Scare: Tether Experiences Temporary De-Pegging Amid DeFi Imbalance
Portfolio Pulse from Murtuza Merchant
Tether's stablecoin USDT experienced a temporary de-pegging as the Curve 3Pool became imbalanced, with USDT's balance surging to over 70%. This resulted in USDT trading at around $0.997. The imbalance may be due to direct attacks on Tether or whales attempting to harm Curve positions by shorting USDT on AAVE.
June 15, 2023 | 12:15 pm
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USDT experienced a temporary de-pegging due to an imbalance in the Curve 3Pool, trading at around $0.997.
The imbalance in the Curve 3Pool caused USDT to de-peg and trade at a lower value. This may lead to short-term negative price pressure on USDT as investors may lose confidence in the stablecoin's ability to maintain its peg.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Whales may be attempting to harm Curve positions by shorting USDT on AAVE, leading to interest spikes.
While the shorting of USDT on AAVE may be contributing to the imbalance in the Curve 3Pool, it is unclear how significant this impact is on AAVE's price. The short-term impact on AAVE may be neutral as the situation unfolds.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50