Trader opens $4 million short on the $TUSD stablecoin using $AAVE

A trader has opened an on-chain short position on the stablecoin TrueUSD (TUSD) after the issuer had to pause mints and redemptions through one of its banking partners, Prime Trust.

An Ethereum user deposited 7.5 million USDC, another stablecoin, as collateral on Aave's V2 lending platform. They used this to borrow 4 million TUSD and immediately sold them for USDC, per on-chain data. Borrowing and immediately selling is a common tactic to take a short position on a specific asset.

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https://www.theblock.co/post/236225/trader-opens-4-million-short-on-the-tusd-stablecoin-on-aave

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