Crypto platform Huobi traded $100,000,000 USDC for DAI during Stablecoin depeg scare: On-chain data

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Crypto exchange Huobi converted $100 million worth of USD (USDC) coins to Dai (DAI) as uncertainty spread across the stablecoin market over the weekend, according to on-chain data.

According to blockchain tracking firm Lookonchain, Huobi made the big transaction early Saturday morning.

“It seems that one of Huobi’s wallets also exchanged 100 million USDC for 100 million DAI.”

Source: Lookonchain/Twitter

Lookonchain also spotted Tron (TRX) founder and crypto-billionaire Justin Sun, who backs Huobi, pulling USDC from Ethereum-based lending platform Aave (AAVE) and swapping it for DAI.

“Justin Sun withdrew 82 million USDC from Aave and exchanged for 82 million DAI.”

Source: Lookonchain/Twitter

The moves come as crypto markets faced yet another stablecoin scare.

USDC lost its peg to the US dollar after it was announced that stablecoin issuer Circle had $3.3 billion of its $40 billion in reserves tied up in the now-collapsed Silicon Valley Bank (SVB). under the supervision of the Federal Deposit Insurance Corporation (FDIC). DAI has also lost its peg as it is partially backed by USDC.

USDC traded as low as $0.87 while DAI retreated to a 24-hour low of $0.89.

The depegging triggered a wipeout of more than $7 billion in USDC market capitalization and prompted traders and whales to take big steps to mitigate risk or take advantage of arbitrage opportunities.

Lookonchain also spotted a whale chasing a seven-figure profit by borrowing USDT, which hasn’t lost its peg, to buy back USDC at a cheaper price in hopes of repaying the loan after the USDC has already returned to its dollar peg.

“Whale CZSamSun buys USDC for arbitrage!

Deposited stETH and ETH to Aave and InstaDapp, borrowed USDT to buy USDC.

So far traded 28,577,700 USDT to 29,961,238 USDC.

Over $1.3 million in profits once USDC is back on the peg!”

Source: Lookonchain/Twitter

As of this writing, the USDC and DAI have yet to reclaim their desired peg. Both stablecoins are trading at $0.94.

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