Curve pool imbalance triggers USDT depeg concerns, Tether CTO calls it FUD
The stablecoin pool ideally has a weightage of 33.3% of each USDT, USDC and DAI, however, on June 15, the USDT weightage rose above 70% in the pool. Tether-issued USDT (USDT) stablecoin slightly deviated from its dollar peg value on June 15 due to an imbalance in the Curve 3pool. The price of USDT fell by 0.3% to around 0.997 as the USDT weightage in the curve 3pool increased to over 70% from the ideal 33.1%. Curve's 3pool is a stablecoin pool for decentralized finance that holds a massive amount of liquidity of the three top stablecoins in DeFi- USDT, USDC and DAI. A significant rise in a particular stablecoin weightage in the curve pool indicates a heavy selling of that stablecoin. USDT price depeg, Source: TradingView With USDT weightage at around 73.8%, it means traders are increasingly selling their USDT for DAI or USDC. USDT concentration in Curve 3pool exceeded over 50% last in November 2022 at the time of FTX collapse. Curve's 3 pool stablecoin weightage. Source: Cur...