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USDC De-peg: What Happened On-Chain?
Niklas Polk
Key Takeaways
6 min read
  • "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