Arbitrageurs took advantage of the USDT deposit


Tether’s USDT stablecoin has deviated from parity with the US dollar. The weighted average rate of the coin dropped to 0.995 (CoinGecko).

Arbitrageurs took advantage of the USDT deposit
Data: CoinGecko.

Lookonchain experts noticed that immediately after the depeg, an investor under the nickname czsamsun.eth shorted the coin on the Aave V2 DeFi protocol. He borrowed 31,544,278 USDT and immediately exchanged it for 31,475,408 USDC at the rate of $0.9978.

Another user took advantage of the stablecoin’s depreciation by borrowing USDC to buy USDT and repay the loan in the coin.

Another whale borrowed 50 million USDC on Aave to arbitrage a stablecoin from Tether. He converted assets into USDT in several batches.

Tether and Bitfinex CTO Paolo Ardoino reacted calmly to the stablecoin depeg:

“Markets are nervous these days, so it is easy for attackers to capitalize on the general sentiment. We at Tether are ready as always. Let them come, we will redeem any amount.

On June 12, the issuer authorized 1 billion USDT to be issued for the purpose of “restocking”. The total market supply is 83.5 billion coins.

Recall that in the first quarter, Tether recorded a net profit of $1.48 billion.

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