USDT slightly decoupled! USDC spread attracts arbitrageurs, Tether technical chief: You can redeem as much as you want

The price of USDT against the U.S. dollar is lower than 1 U.S. dollar. Coinbase and Kraken, the main exchange markets in the United States, have dropped to 0.9973 and 0.9974 respectively. Although the price difference is only 0.26~27%, it has attracted large arbitrageurs to enter the market. In response to this situation, Tether Chief Technical Officer Paolo Antonio responded: It’s up to you to redeem as much as you want.

Coinbase 價格：USDT/USD，短期內較大波動 Lookonchain 紀錄：套利者出動

On-chain data analysis account Lookonchain stated that CZSamSun’s address is shorting USDT. He loaned more than 30 million USDT from Aave and exchanged it for USDC at a price of 0.9978. Then deposit more than 20,000 USDC into Aave v3 and lend out 12 million USDT. However, he may not be very sure about this action and soon returned 12 million USDT.

USDT is depegging!

CZSamSun shorted $USDT on#AaveV2after USDT depegged.

He borrowed 31,544,278 $USDT from#AaveV2and 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

However, it can be found from Aave’s borrowing interest rate that the interest rate has increased to 15%, indicating that a large number of users are currently lending USDT on Aave.

Curve 3 pool USDT accounts for 74%

In Curve, the center for on-chain stablecoin exchange, the liquidity ratio of USDT also reached 74%.

There is also a price difference between USDC and USDT exchange:

Tether Technical Chief: It’s up to you how much you want to redeem

Paolo, chief technical officer of Tether, said about this phenomenon: Tether is already ready for how much you want to redeem.

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

Coinbase USDT Common fluctuations in the U.S. dollar market

From a longer-term perspective, the current degree of decoupling is not unusual in the Coinbase USDT/USD market.

The recent larger fluctuations were during the FTX incident in November last year, and the decoupling incident of USDC due to bank liquidity in March this year.

長時間軸下常見波動

This article USDT is slightly decoupled! USDC spread attracts arbitrageurs, Tether technical chief: It’s up to you to redeem as much as you want. First appeared on Chain News ABMedia.