USDC and DAI courses untied the dollar due to storage of reserves in the problem bank Silicon Valley Bank – Bits Media

The operator of one of the largest Circle stablecoins reported, what $3,3 The USDC billion billion is stored in Silicon Valley Bank. Against this background, USDC and DAI courses got rid of the dollar exchange rate.

The collapse of the Silicon Valley Bank has become the largest with a crisis 2008 year in the USA. Federal Corporation for Insurance US deposits (FDIC) I was forced to take measures and take control of the bank's operations. Silicon Valley served many technological companies, including, And Circle, behind the USDC stablecoin.

Considering, that the capitalization of USDC exceeds $41 billion, Temporary inaccessibility $3,3 billion should not be a significant problem, especially, that the deposits in Silicon Valley are insured by FDIC, Although there are rumors about a possible loss 40% From these funds. Circle storage message of significant amounts of funds in this bank led to some panic. Stablecoin's exchange rate got rid of the dollar and decreased 2% At some venues. Now USDC is trading in $0,93.

The DAI stablecoin also had problems - the provision of this token is partially contained in USDC. Therefore, the DAI exchange rate also untied the dollar. Now the token is traded in $0,94.

Representatives of Circle said, that so far they are not taking special actions, And they are waiting for "clarification of the situation" by American regulators. Currently near 25% USDC reserves are stored in six American banks, Including bankrupt Silvergate and Silicon Valley. Some sources report, What are the problems and the Signature Bank has, where Circle also stores part of the reserves.

Against this background, the American cryptocurrency exchange Coinbase has stopped the USDC converting to fiat currency. Representatives of the site said, that the service will be restored on Monday, When banks will have work hours. The largest Binance exchange has also suspended USDC converting to Busd.

Messages began to appear about that, that various cryptocurrency exchanges suspended deposits in USDC. One of the reasons may be a desire to smooth out the impact of sales on Stablecoin. but, Using USDT exchange smart contracts, USDC, DAI and other tokens, It has grown noticeably - investors try to get rid of problem assets. Against this background, the volume of gas for operations in the Ethereum network has grown to 220 Weave.

The problem is also, what if the USDC course falls to $0,87, then on the platforms AAVE and Compound will begin cascading elimination of positions, which will further increase the pressure on stablecoin. The amount of liquidations will be $45,3 million. Fortunately, The situation began to straighten out - after falling to $0,88 The USDC course began to recover a little.

Moreover, many continue to believe in steablecoin from circle. So, General Director of the Head Fund North Rock Digital Hal Press (Hal Press) stated, that the organization began the USDC ransom starting from the price $0,935, And at the level $0,88 Hedge Fund has increased purchases. He stressed, that Circle is enough, to keep the stablecoe mark $0,93. I also affected the situation of arbitration traders - many began to take loans in USDT for trading on the difference in stables. The percentage of the use of funds almost instantly took off to 100% annual.

Looks like, that the founder of Tron Justin San (Justin Sun) I decided to protect my assets. To do this, he withdrew Defi Aave from the protocol 82 Milln USDC and exchanged them for DAI. Now both stablecoin are untied from the US dollar and are trading about the same price, but, Apparently, Justin San trusts token DAI more.

The story of one of the traders was extremely sad, who, using the decentralized protocol, has exchanged assets for $2,03 Milln in the 3POOL pool of the Curve protocol only on 0,05 USDT. Seems to be, He mistakenly sent funds through Kyanswap not to Curve protocol, And in the smart contracts of the decentralized exchange Uniswap V2, where liquidity turned out to be extremely low - only a few dollars. This pool monitored one of the bots, who bought the bet for $1,45, And to ensure the execution of the transaction, the bot increased the commission before 24 ETH.

Earlier, founder of the protocol Maker Rune Kristensen (Rune Christensen) He said, that it is necessary to untie the stablecoin DAI from the US dollar. He told, that about half of DAI is stored in USDC, Which is risky enough. As current events showed, He was right. Interesting, that Twitter General Director Ilon Musk has already announced a possible purchase of Silicon Valley and turn it into a digital bank.

Recall, what last year, Against the background of the collapse of the Terra ecosystem, Many stablecoins lost a binding to the US dollar. In May from the dollar exchange rate
Large algorithmic stablecoin ust, which led to cascading liquidations and collapse of the ecosystem. Later binding was lost by Tron Usdd, Acala USD, HUSD
И Neutrino Usd.

Earlier in the United States, Silvergate cryptocurrency bank collapsed. A large -scale material about that, How this and other factors influenced a decrease in the cryptocurrency market.