I did not imagine that this would happen in a day, but unfortunately it did.
The only drawback of Dai is its heavy reliance on USDC, which affected its stability, Lets hope they have enough Liquidity to cover the state of panic that may occur, especially if the disengagement continues for more than one day.
As for the cause of USDC de-pegged, it is central, and it seems that exposure to SVB was great.
Topic: Why did stablecoins (USDC) lose their peg to the dollar? (Read 60 times)
Stable coins will be de-pegged if assets they use to back their stable coins have troubles.
Troubles can be from their bad algorithm like Terra algorithm for their algorithmic stable coin UST.
Troubles can be from their shady finance management for their treasury to back their stable coins but unfortunately their shady treasury management is detected and leaked like FTX case that cause their token FTT went to the hell. That token is not a stable coin but it's good to use as an example.
Troubles can be from banks like bank bankruptcies
Troubles can be from their bad algorithm like Terra algorithm for their algorithmic stable coin UST.
Troubles can be from their shady finance management for their treasury to back their stable coins but unfortunately their shady treasury management is detected and leaked like FTX case that cause their token FTT went to the hell. That token is not a stable coin but it's good to use as an example.
Troubles can be from banks like bank bankruptcies
USDC de-pegged because of the Silicon Valley Bank going bust, which Circle(the company handling USDC) went under. Circle had like approximately 8%(if I remember correctly) of their USD on SVB hence the market-wide panic.
What caused the suspension of trading with USDC on Binance and why did DAI decrease by 13% against the dollar?
A good chunk of DAI's backing is from USDC.
Why did stablecoins lose their peg to the dollar and how did this affect or will it affect crypto trading on the Binance exchange?
What caused the suspension of trading with USDC on Binance and why did DAI decrease by 13% against the dollar?
What factors led to the loss of the stablecoin peg to the dollar and how did this affect the value of DAI and USDC trading on the Binance exchange?
What caused the suspension of trading with USDC on Binance and why did DAI decrease by 13% against the dollar?
What factors led to the loss of the stablecoin peg to the dollar and how did this affect the value of DAI and USDC trading on the Binance exchange?
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