• Crypto whales suffer huge losses due to USDC depeg and SVB collapse.
• USDC depegging caused a chain reaction resulting in several platforms unable to handle high volumes of trade requests.
• MakerDAO issued an emergency protocol to prevent panic selling on DAI stablecoin.

USDC Depegging Causes Losses for Crypto Whales

Crypto whales have suffered massive losses as a result of the USDC stablecoin’s depegging, which was caused by the collapse of its counterparty Silicon Valley Bank (SVB). According to co-founder of Huobi Global Du Jun, losses amounted to more than $1 billion in stocks and deposits. Justin Sun reportedly withdrew 82 million USDC from decentralized finance (DeFi) protocol Aave v2, swapping it with Dai at the time of publication worth $75.26 million.

Chain Reaction Brings Widespread Impact

The depegging event had a large impact on other crypto projects and stakeholders in a massive chain reaction. MakerDAO, the issuer of Dai stablecoin, filed an emergency protocol on March 11 that included restrictions on minting DAI using USDC in order to prevent panic selling. The protocol also saw 3.1 billion USDC ($2.85 billion) used as collateral for DAI, causing further losses for projects incorporating DAI into their tokenomics due to the chain reaction.

High Trading Volume Leads To Platform Overload

The events surrounding the USDC depegging resulted in platforms being unable to handle high volumes of trading requests relating to USDC swaps affecting users negatively – one user received just 0.05 Tether after paying over 2 million USDT while attempting a swap resulting in permanent loss. Curve Finance reported an all-time high daily trading volume of $5.67 billion as a result of these events despite having only $3.77 billion total value locked up at that time however KyberSwap, who facilitated the swap mentioned before has since issued an update regarding reimbursement policy for those affected by such trades during this period so as not incur any more losses..


The depegging event of the USD Coin has led to massive losses for crypto stakeholders including whales who have reported large amounts lost even after attempts were made dodge similar events like LUNA and FTX’s collapse before hand . Furthermore platforms faced overloads due incorrect execution or too many orders being placed leading users losing out on funds whilst executing said orders thus highlighting need for better protocols by exchanges when handling such situations with regards liquidity and correct order execution .

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