The $100 million saved on loans is a result of debtors being influenced to repay their loans due to the profitable opportunity.
The value of two of the most popular stablecoins, USDC and DAI, took a tumble over the weekend. On Saturday, USDC hit a yearly low of $0.8774 on CoinMarketCap, while DAI dropped to $0.897. However, both coins have since recovered, with USDC now trading at $0.999 and DAI at $0.9981. This rebound was thanks to Circle co-founder Jeremy Allaire’s assurances that the company’s reserves were safe and it had already lined up a new banking partner.
The recent de-pegging of cryptocurrencies from the US Dollar has resulted in over $2 billion being repaid in loans on Aave and Compound – a decentralized crypto landing platform. The repayment of these loans has caused the value of USDC and DAI to recover somewhat, but they remain volatile.
Flipside Crypto released a report estimating that debtors saved around $84 million thanks to the de-pegging of USDC and DAI. The report also said that the widespread crypto unrest created “countless arbitrage opportunities” across the ecosystem.