Significant selling on Uniswap & Curve pools results from the Curve exploit and Tether imbalance that drive DeFi volatility.
Curve Exploit and Tether Imbalance Fuel DeFi Turmoil
Worrying circumstances have arisen as a result of the Curve exploits, which rocked the DeFi sector and resulted in the return of more than 70% of the missing funds. Unexpectedly, the Tether (USDT) stablecoin is significantly out of balance on platforms like Curve and Uniswap, which is causing problems for the DeFi sector. The discrepancy has been emphasized in recent Kaiko reports, but sources claim that significant USDT selling started at the beginning of July.
Kaiko’s Report
Uniswap V3’s primary USDT-USDC pool and Curve’s 3pool, both of which have grown unbalanced as a result of increased USDT selling, are the main targets of worry, according to Kaiko’s assessment. The initial occurrence of this issue occurred between July 15 and July 22, which showed a significant $100 million net selling on Uniswap. Selling decreased in the weeks that followed, but on July 31, it started up again in response to the Curve vulnerability. It’s significant to notice that there seems to be no connection between these two instances.
With Uniswap losing almost $40 million in net sales and Curve losing about $35 million, there has been a clear selling pressure. The Curve pool is currently uncomfortably unbalanced, with a large 60% in USDT holdings. As a result of this situation’s impact on centralized exchanges, the peg of USDT to the US dollar has recently taken a small hit.
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