The second largest stablecoin USDC de-pegged from the actual value of the U.S. dollar. Thus, the profitable opportunity influences debtors to repay loans and save more than $100 million on loans.
Due to the collapse of crypto-friendly banks such as Silvergate Capital, Silicon Valley Bank, and Signature Bank, stablecoins like USDC and DAI started de-pegging from $1 and recorded yearly low amid a crypto-clatter.
The second largest stablecoin USDC fell from the dollar value on 11 March and hit the yearly low at $0.8774 as per CoinMarketCap. Silicon Valley Bank breakdown on 10 March. Similarly, DAI — stablecoin of Maker DAO — dropped to $0.897 on Saturday.
However, USDC recovered as Circle co-founder Jeremy Allaire said its reserves were safe and the company had already lined up a new banking partner. The result was seen in USDC at $0.999, and DAI was also present at $0.9981 at that time of writing.
As per the analysis report from Kaiko, the de-pegging pushes the borrowers to repay the loan at a discount, resulting in over $2 billion in loan amount repaid on Aave and Compound, a decentralized crypto landing platform.
![$2 billion in loan amount repaid on Aave and Compound](https://www.cryptotimes.io/wp-content/uploads/2024/02/Ftsr1ARkE7OetXEwSeXqVl9YLyBWvLMB1jXlMOmPTLlL2vyP0hSQKOVRD4clpsvcQCLBZCRoWGT6-t23bpjr6rfk0OUKMWpOvqeN73Ptv_cXJ0gAbRUXqomDDffM8s-f8mysjMeLeFQPNr3hUmkXep8.png)
According to the report, more than $1 billion of loans were settled in USDC and about $500 million in DAI on Saturday. However, the volatile USDC and DAI have so far recovered.
Also Read: MakerDAO Issues Emergency Proposal to Mitigate $3.1B USDC Risk
Flipside Crypto, another analytics firm, published a report on the estimated saved money by debtors. Around $84 million in funds was saved by USDC borrowers amid de-pegging, and $20.8 million in DAI borrowers received discounts during the widespread crypto unrest.
![the estimated saved money by debtors](https://www.cryptotimes.io/wp-content/uploads/2024/02/zBr6i16z8s7O8EdpChW45sqwkxwHuDpTxODEkU3jfZlQFuIjszFmLloFy5ldnzgLAPKjuiZBUDmIBmys9zD-cvY5abjmMW-jS4aqwQahlt2HxNxkspCRTVJuxj8HqczmcTjdhpf4RB0UomZ8evvnnFs.png)
“Overall, DeFi markets experienced two days of huge price dislocations that generated countless arbitrage opportunities across the ecosystem, and highlighted the importance of USDC,” the Kaiko report said.