Tether's USDT deviates amid DeFi's Curve 3Pool imbalance, market tension and potential attacks.
Tether's USDT stablecoin value has slightly deviated as Curve's 3Pool, a leading stablecoin trading pool in decentralized finance (DeFi), became heavily skewed. Ideally, the three stablecoins in the Curve 3Pool - USDT, USDC, and DAI - should each constitute 33.33%, but USDT's share has surged to over 70%. This rise indicates a high volume of USDT being traded for DAI or USDC, resulting in USDT's value dropping to $0.997.
Tether's CTO, Paolo Ardoino, attributes the current tension in the market to various factors, including recent events causing significant groups to withdraw from crypto markets. As Tether is a key liquidity channel, it reflects market sentiment through inflows and outflows. He also didn't rule out a targeted attack on Tether, similar to what occurred in 2022.
Previous instances of Curve 3Pool imbalance happened in March when USDC and DAI's shares rose over 45% each, following FTX exchange's collapse in November and the Terra ecosystem's crash in May 2022. Ardoino assured that Tether is prepared to redeem any amount and will continue monitoring the situation.
