Tether Experiences Temporary De-Pegging
The Curve 3Pool, a famous decentralised financial pool for stablecoin trading, has become highly imbalanced, causing a slight de-pegging of Tether’s stablecoin.
The Curve 3Pool’s optimal balance should be evenly spread across its three stablecoins, USDT, USD Coin, with each accounting for 33.33%.
However, the USDT balance has grown to more over 70%, indicating a significant USDT sell-off in support of DAI or USDC.
Because of this mismatch, the USDT has de-pegged and is now trading at around $0.997.
Tether’s CTO, Paolo Ardoino, acknowledged the tight market climate and emphasised the impact of recent developments on market sentiment.
In an interview, he emphasised Tether’s function as a liquidity gateway and stated that interest and sentiment in the crypto market drive inflows and outflows.
Ardoino also cited the prospect of direct Tether attacks, like seen in 2022, as well as whales attempting to harm Curve positions by shorting USDT on AAVE, causing interest spikes.
(With inputs from Shikha Singh)
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