Tether’s USDT Loses Dollar Peg Amidst Curve’s 3Pool Liquidity Imbalance

Tether‘s (USDT), the largest stablecoin in the crypto market by market value, experienced a slight decline after losing its dollar peg. This incident happened due to a significant imbalance in one of the best liquidity pools for stablecoin trading in Decentralized Finance (DeFi), Curve’s 3Pool. The Imbalance in Curve 3Pool Hits USDT For an ideal balance in Curve’s 3Pool, a rate of 33.33% needs to be maintained for each of the three major stablecoins, USDT, USDC, and DAI. However, USDT’s share in the pool has risen above 70%. This situation indicates that investors are selling too much USDT for DAI or USDC, resulting in USDT losing its dollar peg and retreating to $0.997. Tether’s CTO, Paolo Ardoino, commented on the situation, “The market is indeed tense. All the recent news is pushing large investor groups to exit the crypto market. Tether serves as a gateway for incoming and outgoing liquidity. […] The post Tether’s USDT Loses Dollar Peg Amidst Curve’s 3Pool Liquidity Imbalance appeared first on COINTURK NEWS.