{"id":563408,"date":"2023-03-14T08:53:03","date_gmt":"2023-03-14T05:53:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/debtors-saved-over-100m-using-de-pegged-stablecoins-to-repay-loans\/"},"modified":"2023-03-14T08:53:03","modified_gmt":"2023-03-14T05:53:03","slug":"debtors-saved-over-100m-using-de-pegged-stablecoins-to-repay-loans","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/debtors-saved-over-100m-using-de-pegged-stablecoins-to-repay-loans\/","title":{"rendered":"# Debtors saved over $100M using de-pegged stablecoins to repay loans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a32563c2c4f0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a32563c2c4f0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/debtors-saved-over-100m-using-de-pegged-stablecoins-to-repay-loans\/#%E2%80%9D_Debtors_saved_over_100M_using_de-pegged_stablecoins_to_repay_loans_%E2%80%9C\" >&#8221; Debtors saved over $100M using de-pegged stablecoins to repay loans &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Debtors_saved_over_100M_using_de-pegged_stablecoins_to_repay_loans_%E2%80%9C\"><\/span>&#8221; Debtors saved over $100M using de-pegged stablecoins to repay loans &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The depegging of USD Coin (USDC) and Dai (DAI) from the United States dollar prompted a frenzy of loan repayments over the weekend, allowing debtors to save a total of more than $100 million on their loans.<\/p>\n<p>Following the collapse of Silicon Valley Bank on March 10, the\u00a0USDC\u00a0price dropped to lows of $0.87 on March 11 amid concerns about its reserves being locked at SVB. <\/p>\n<p>MakerDAO\u2019s stablecoin DAI\u00a0also de-pegged briefly, going as low as $0.88 on March 11, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/dai\">according<\/a> to CoinGecko.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/64d798f3-a2c0-4301-b98e-0bb195d8f893.JPG\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>The USDC price briefly\u00a0dropped\u00a0to lows of $0.87 on March. 11. Source: Cointelegraph<\/em><\/figcaption><\/figure>\n<p>The depegging, in the backdrop of broader crypto turmoil, led to more than $2 billion in loan repayments on March 11 on decentralized lending protocols Aave and Compound \u2014 with more than half made in USDC, according to a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.kaiko.com\/the-aftermath-what-happened-to-usdc-581289be30ff\">report<\/a> by digital assets data provider <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/KaikoData\/status\/1635344954028605440\">Kaiko<\/a>.\u00a0<\/p>\n<p>Another $500 million in debts were paid in DAI on the same day, it noted.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/e442342b-7365-4af8-a8e8-200af9dc4530.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Digital assets data provider Kaiko found over $1 billion\u00a0in USDC loan repayments on March. 11. Source: Kaiko<\/em><\/figcaption><\/figure>\n<p>This tapered off as both USDC and DAI started heading back toward their peg. The following days did not have anywhere near as many repayments, with a rough total of only $500 million in loan repayments across Tether (USDT), USDC, DAI and other coins on March 12, and roughly half of that on March 13.<\/p>\n<p>Blockchain analytics firm Flipside Crypto <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/flipsidecrypto.xyz\/angeal\/usdc-dip-loan-repayment-discounts-mr1fGV\">estimates<\/a> that USDC debtors saved $84 million as a result of paying back loans while the stablecoin was de-pegged, while those using DAI saved $20.8 million. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/d9309cc4-c76b-45f4-a614-cea05dc98e3c.JPG\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Debtors used de-pegged stablecoins to save millions in loan repayments.\u00a0Source: Flipside Crypto<\/em><\/figcaption><\/figure>\n<p>\u201cOverall, DeFi markets experienced two days of huge price dislocations that generated countless arbitrage opportunities across the ecosystem, and highlighted the importance of USDC,\u201d the Kaiko report said.\u00a0<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>USDC depegged, but it&#8217;s not going to default<\/em><\/strong><\/p>\n<p>The depegging of USDC also led MakerDAO to\u00a0reconsider its exposure to USDC, as crypto projects incorporating DAI in their tokenomics suffered losses due to a chain reaction.<\/p>\n<p>Circle\u2019s USDC began its climb back to $1 following confirmation from CEO Jeremy Allaire that its reserves were safe and the firm had new banking partners lined up, along with government assurances that depositors of SVB would be made whole.<\/p>\n<p>According to CoinGecko <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/usd-coin\">data<\/a>, USDC was sitting at $0.99 at the time of writing.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/debtors-saved-over-100m-using-de-pegged-stablecoins-to-repay-loans\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Debtors saved over $100M using de-pegged stablecoins to repay loans &#8220; The depegging of USD Coin (USDC) and Dai (DAI) from the United States dollar prompted a frenzy of loan repayments over the weekend, allowing debtors to save a total of more than $100 million on their loans. Following the collapse of Silicon Valley&#8230;<\/p>\n","protected":false},"author":1,"featured_media":563409,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/05c7759e-d1a1-43c2-8d7a-240ef415e250.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[92664,74867,74894,126890,76701,74868,75493,82350,71939,72366,90171,33355],"class_list":["post-563408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-aave","tag-altcoin","tag-blockchain","tag-compound","tag-dai","tag-defi","tag-stablecoin","tag-usd-coin","tag-banks","tag-data","tag-kaiko","tag-silicon-valley"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=563408"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/563409"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=563408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=563408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=563408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}