Several holders of the USDC tokens have moved towards other stablecoins since the 10th of March- with fears that have surrounded the solvency following the revelation that a major part of the USD coin’s collateral is being currently held at the Silicon Valley Bank. However, it must also be mentioned that not all investors have had success when they went through panic selling.
One user reportedly paid close to 2 million USDC in order to receive just $0.05 of Tether, by dumping quite a large amount of 3CRV into the USDT. The aggregation router of KyberSwap was used during this transaction. For those who are unaware, KyberSwap is a DEX, or decentralized exchange aggregating liquidity from quite a few DEXs.
USDC Investors Could Be In For A Rough Period Of Time
In a subsequent post-mortem, the protocol team also explained that since the market was going through quite a volatile period, all of the routes had reportedly failed at estimating the gas percentage. The rate, therefore, kept fluctuating strongly, and only the route of 0x’s was successful, but with quite a poor rate.
After the swap at the Ox’s rate was confirmed through a pop-up, a bot went ahead and detected the opportunity- after which they also managed to gain 2,085,256 USDC from the pool which belonged to Univ2. The protocol is currently in talks with the bot creator, third parties, and other bot users in assisting with the recovery of funds.
After the funds were shifted to other stablecoins, Justin Sun- the founder of Tron- also went on to withdraw close to 82 million USDC using the decentralized finance protocol Aave v2- which was then swapped with Dai- for around $75 million.