The decoupling of US gold coins (USDC) and tokens (DAI) from the US dollar sparked a weekend repayment frenzy that saved debtors more than $100m in loans.
After the collapse of Silicon Valley Bank of America on March 10th, the price of gold, which was locked in the SVB,USDC for fear of its reserves, fell to a floor of 87 cents on March 11th.
MakerDAO's stablecoin Dai was also temporarily decoupled, falling as low as 88 cents on March 11, according to CoinGecko.
According to a report by digital money data service provider Kaiko, in a wider environment of volatile login codes, such decoupling resulted in the repayment of more than $2 billion in loans under blockchain technology loan agreements AAVE and Compare on March 11-more than half of which were completed at USDC.
On the same day, Dai repaid another $500 million in debt.
As USDC and Dai gradually returned to his pegged exchange rate system, such things gradually disappeared. There were few repayments over the next few days, with loans repaid by Tether (USDT), USDC, DAI and other coins totaling about $500m on March 12th, compared with about half that on March 13th.
Blockchain technology analysis enterprise Flipside Crypto may have saved $84 million on loan repayment by USDC debtors with a smooth hook, while debtors with DAI may have saved $20.8 million.
"overall, the DEFI sales market has experienced a significant price shift over several days, creating thousands of arbitrage opportunities in all ecosystems and showing the need for USDC," the Kaiko report said. "
The decoupling of USDC also caused MakerDAO to carefully consider its openness to USDC, which suffered losses due to the chain reaction due to the inclusion of DAI in its new login password project of dynamic password group.
Circle's USDC gradually warmed back to $1 after CEO Jeremy Alisle confirmed that its risk reserves were safe and that the company had long queues with partners of new financial institutions, while the government ensured that SVB depositors would be fully reimbursed.
According to CoinGecko, at the time of writing, the price of USDC is $0.99.
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