Tether’s USDT stablecoin has deviated from parity with the US dollar. The weighted average rate of the coin dropped to 0.995 (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.
USDT is depegging!
CZSamSun shorted $USDT on #AaveV2 after USDT depegged.
He borrowed 31,544,278 $USDT from #AaveV2 and exchanged for 31,475,408 $USDC at a rate of $0.9978.
And he deposited 10M $USDC again on #AaveV2. pic.twitter.com/3rrfENocRk
— lookonchain (@lookonchain) June 15, 2023
Another user took advantage of the drop in the stablecoin 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.
Whale”0xd275″ borrowed 50M $USDC from #Aave after #USDT depegging and started buying $USDT to arbitration.https://t.co/8Tqow2B9Ie pic.twitter.com/SD3jsT4scL
— lookonchain (@lookonchain) June 15, 2023
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.
Markets are edgy in these days, so it’s easy for attackers to capitalize on this general sentiment.
But at Tether we’re ready as always. Let them come.
We’re ready to redeem any amount.— Paolo Ardoino 🍐 (@paoloardoino) June 15, 2023
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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