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De-Pegged USDC and DAI Stablecoins Earn Debtors Over $100M Discount

De-Pegged USDC and DAI Stablecoins Earn Debtors Over $100M Discount

Some debtors seem to have used the drop in USDC and DAI prices to their advantage.

Debtors seized the opportunity to earn a total of over $100 million in discounts on their loan repayments when USD Coin (USDC) and Dai (DAI) stablecoins lost their $1 peg over the weekend.

The fall of Silicon Valley Bank (SVB) on March 10th caused the USDC price to drop to an all-time low of $0.8774 on March 11th. The price slump came after Circle, the issuer of the USDC announced that it had over $3 billion of deposits with SVB.

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DAI, MakerDAO’s stablecoin, also de-pegged, dropping to an all-time low of $0.897 on March 11th.

The price slump of DAI and USDC prompted a massive loan repayment totaling more than $2 billion on March 11th. The repayments were made on the leading decentralized lending platforms, Aave and Compound. 

Kaiko, a digital data provider, reported that over $1 billion of the loan repayment was made in USDC, while DAI debtors made debt repayments worth over $500 million.

Aave and Compound borrowers took advantage of USDC's de-peg to repay their loans; over $1bn USDC was repaid on Aave on March 11th alone.

The loan repayment rate declined as the prices of the stablecoin started rising toward their $1 peg. The total loan repayment on March 12th was $500 million.

According to estimates by Flipside Crypto, a blockchain analytics firm, USDC debtors earned over $84 million in discounts following their loan repayments throughout the tokens’ price drop. Debtors of DAI saved approximately $20.8 million.

The prices of these stablecoins started to rally toward $1 following the announcement by the Feds that all depositors will access their funds in full.

At the time of writing, both USDC and DAI retail for $0.9990.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



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