Tether Dominates Curve's 3pool Liquidity With DAI, USDC Accounting for Just 15%

Tether accounts for 85% of the total liquidity in Curve's 3pool. While the stablecoin is seeing some volatility, the price remains firmly near the 1:1 U.S. dollar peg,

AccessTimeIconNov 10, 2022 at 12:34 p.m. UTC
Updated Nov 10, 2022 at 4:55 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Decentralized exchange Curve's 3pool, perhaps one of the most important pools for stablecoins in decentralized finance, is heavily imbalanced.

  • At press time, tether (USDT), the world's largest stablecoin by market value, accounted for 85% of the pool's liquidity. The other two pool components – MakerDAO's DAI and USDC – accounted for 15%.
  • Tether's dominance in the pool has doubled this week.
  • The renewed imbalance suggests an increased preference for DAI and USDC over tether – a phenomenon last observed after Terra's crash in May saw tether turn volatile and lose its peg.
  • USDT accounted for 60% of the pool in July as the fear about tether permanently losing its 1:1 U.S. dollar peg gripped the market.
  • That fear seems to have returned, with tether seeing minor volatility amid rumors that Alameda, FTX's sister concern, is swapping USDT for USDC.
  • USDT briefly fell to just under 98 cents soon before press time. Historically, tether has moved in the range of 98 cents to $1.02 most of the time.

UPDATE (Nov. 11, 12:56 UTC): Updates story with latest figures.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.