USDC De-peg: What Happened On-Chain?
- "The "floor price" of USDC only applies when the supply of USDC remains constant. In extreme situations with ongoing redemptions and a hole in the balance sheet, the floor price can be as low as $0.
- Between 10-15 March, net $4.46 billion USDC was redeemed. Daily redemptions were at yearly highs, with Coinbase the largest redeemer by far.
- With few exceptions (like 446m USDC stuck in Voyager), the majority of USDC could likely be redeemed within a couple of days in a worst-case scenario. However, arbitrage dynamics could counteract redemptions for USDC in certain DeFi pools and vaults temporarily.
- $2.2b USDC was deposited into Maker the maker Peg Stability Module to mint DAI 1:1, almost doubling the module’s USDC balance. This