DeFi Protocol Curve’s $500M Stablecoin Pool Hammered as Traders Flee USDC

NEW: DeFi protocol Curve’s 3pool – key infrastructure for trading stablecoins – is running low on USDT as the collapse of Silicon Valley Bank spooks USDC holders. realDannyNelson reports

Key infrastructure supporting stablecoin trades on decentralized finance exchange Curve is falling out of balance amid fears that 3pool’s triad of tokens could be impacted by the sudden downfall of tech-forward Silicon Valley Bank.

The imbalance speaks to crypto investors’ sudden flight from assets linked to Circle’s USDC stablecoin; DAI is partially backed by USDC. Their fears are being stoked by speculation that a portion of Circle’s cash reserves – the assets backing USDC – may be locked up in collapsed Silicon Valley Bank.

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