Tron (TRX) founder Justin Sun earned $3.3 million on stablecoins, which lost their price stability with the US banking crisis.
Tron founder turns volatile stablecoin market into opportunity
On-chain researcher Lookonchain reported that a wallet thought to belong to Justin Sun made over $3.3 million in profits as USDC lost price stability. The respective wallet exchanged a large amount of USDT with the bottom price USDC.
The wallet named “0xbcb7” exchanged 50 million USDC stored in Aave for 50 million DAI after USDC lost price stability. Then, it also pulled USDC from Binance and exchanged them for DAI again. In the other transaction, it pulled 214.9 million USDT from Binance, converting 100 million to 103.3 million USDC and 75 million to 75.5 million DAI.
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After the $USDC depegging, wallet "0xbcb7" withdrew the 50M $USDC stored on #Aave, exchanged for 50M $DAI at a 1:1 ratio.
Then withdrew $USDC from #Binance and exchanged for $DAI. pic.twitter.com/wvtAMOchwA
— Lookonchain (@lookonchain) March 15, 2023
The wallet then traded all USDC for DAI before exchanging 30 million DAI for 30 million USDC. It also bought 20 million USDC with USDT before transferring 50 million USDC to “0x30Dff” address. Interestingly, the same address also received 100 million USDC from Justin Sun and transferred all 150 million USDC to Coinbase.
According to Lookonchain’s report, Justin Sun traded all 82 million USDC from Aave for 82 million DAI as the price fluctuated. This move has reportedly helped him avoid losses while depegging and earn more than $3.3 million by buying USDT and USDC.
USDC is on the radar of investors looking for ‘easy’ earnings
In the rally that started after the US inflation data, which we transferred as Kriptokoin.com, USDC had difficulty maintaining its price stability. This resulted in a lot of market activity as traders looked for opportunities to profit from the situation. While some traders took losses, Justin Sun’s reported strategy seems to have paid off and yielded substantial profits.
MakerDAO introduces new mechanism to hedge USDC
MakerDAO (MKR) has sought community approval in a new emergency executive proposal to introduce a debt ceiling breaker for collateral assets used to issue the DAI stablecoin. This move became necessary after USD Coin (USDC) lost price stability last weekend as Circle, the company behind it, was revealed to be holding deposits at Silicon Valley Bank (SVIB). As USDC is a significant collateral support for DAI, the unpinning event resulted in a temporary loss in the dollar pair for DAI.
The PSM circuit breaker Executive Vote has been enabled to be voted on.
We encourage MKR holders and delegates to review and support this proposal with the purpose of implementing a PSM circuit breaker as soon as possible.
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— Maker (@MakerDAO) March 14, 2023
With this new proposal, the DeFi protocol aims to implement a mechanism in the Maker protocol that will reset the debt ceiling of any collateral type.
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