Curve pool imbalance triggers USDT depeg concerns: Finance Redefined

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.

On June 15, an imbalance in Curve Finance’s 3pool led to a Tether

USDT

$1.00 depeg scare as the stablecoin’s weightage in the pool rose above 70%, leading to heavy selling. Tether’s chief technology officer claimed these market conditions are stress tests for the stablecoin and played down the depeg “FUD.”

In other news, a crypto trading bot programmed to execute arbitrage trades borrowed $200 million to make just over $3 in profit.

Uniswap, the decentralized exchange protocol, released its version 4 code on June 13, making way for new liquidity pools.

DeFi lending platform Sturdy Finance was drained for $800,000. The protocol’s team offered a $100,000 bounty for returning the funds and reopened its stablecoin market on June 16. In another exploit, the Hashflow protocol was drained for $600,000; however, Hashflow assured users they would be “made whole.”

The top 100 DeFi tokens had another bearish week, with most of the crypto tokens trading at three-month lows.

Curve pool imbalance triggers USDT depeg concerns, Tether CTO calls it FUD

USDT slightly deviated from its United States dollar peg on June 15 due to an imbalance in Curve’s 3pool. The price of USDT fell by 0.3% to around 0.997 as its weightage in the curve 3pool increased to over 70% from the usual 33.1%.

Curve’s 3pool is a stablecoin pool for decentralized finance holding a massive amount of liquidity in the three top stablecoins: USDT, USD Coin

USDC

$1.00 and Dai

DAI tickers down

$1.00 . A significant rise in the weightage of a particular stablecoin in the pool indicates heavy selling of that asset.