If USDC is discounted by 10% again, positions exceeding USD 70 million may face the risk of liquidation

Odaily Planet Daily News If the stablecoin is de-anchored from the US dollar again this week, traders who use the DeFi protocol to bet on USDC’s recovery over the weekend will face an 8-digit liquidation risk. According to DeFi Llama, there are $70.8 million in positions that could be liquidated between $1.00 and $0.895, with Compound’s two most recently filled positions worth $20.7 million and $15.4 million, respectively. USDC fell to a low of $0.88 on Saturday after USDC issuer Circle announced it held $3.3 billion in cash reserves at Silicon Valley Bank (SVB). Circle revealed on Sunday that the $3.3 billion would be fully available when U.S. banks open for business on Monday morning, allaying concerns that redemptions could be suspended. Although the immediate panic seems to be over, and USDC also resumed its peg to the US dollar on Monday, if USDC once again hits $0.985, the first of the two Compound positions worth $20.4 million will be liquidated, and the other position will be liquidated. The price point is $0.925. (CoinDesk)

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