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USDT Proportion Falls in Curve Stable Currency Exchange Agreement

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On March 11, it was reported that the proportion of USDT in the 3-pool of the stable currency exchange agreement Curve fell to 1.9%, leaving only 8.3 million, d

USDT Proportion Falls in Curve Stable Currency Exchange Agreement

On March 11, it was reported that the proportion of USDT in the 3-pool of the stable currency exchange agreement Curve fell to 1.9%, leaving only 8.3 million, due to the influence of Circle’s announcement that it had $3.3 billion of reserves in the bankrupt bank Silicon Valley Bank. Users chose to exchange USDC and DAI (part of the collateral was USDC) for USDT. At present, the USDC/USDT has dropped to 0.93 in Curve exchange.

The proportion of stable currency in Curve 3Pool is seriously skewed, and the USDC USDT has dropped to 0.93

Analysis based on this information:


The recent announcement by Circle, revealing that they had $3.3 billion in reserves in the bankrupt Silicon Valley Bank, had a significant impact on the 3-pool of the stable currency exchange agreement, Curve. As a result, the proportion of USDT (Tether, a stablecoin pegged to the US dollar) in the 3-pool fell to 1.9%, leaving only 8.3 million. This forced users to exchange their USDT for USDC (USD Coin, another stablecoin pegged to the US dollar) and DAI (Dai, a decentralized stablecoin pegged to the US dollar). As a result, the USDC/USDT dropped to 0.93 in the Curve exchange, indicating a preference for USDC over USDT.

This news highlights the volatility of the stablecoin market and the importance of transparency and trust in the financial industry. Tether has faced scrutiny in the past about whether it actually holds enough reserves to back the USDT in circulation. Many investors and regulators have expressed concerns that the company may be operating as a fractional reserve, putting the stability of the entire cryptocurrency market at risk.

The shift towards USDC and DAI may indicate a growing trend towards using more transparent and trustworthy stablecoins. USDC, for example, is backed by full reserves and operates under regular public attestations of reserves by Grant Thornton LLP. This provides users with more confidence in the integrity and stability of the USDC and reduces the risk of a liquidity crisis.

Overall, this news serves as a reminder that the stability of the stablecoin market is critical to the overall stability of the cryptocurrency market as a whole. The shift towards more transparent and trustworthy stablecoins is a promising development, providing greater confidence and security for investors and the industry as a whole.

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