Tether drops freedom of information opposition, allowing CoinDesk access to its reserve data, as USDT imbalance in Curve's 3pool causes depeg concerns.
(USDT) is a stablecoin that is designed to be pegged 1:1 to the US dollar. However, on June 15, 2023, Tether deviated slightly from its peg to the US dollar, reaching a low of $0.996, due to an imbalance in Curve's 3pool.
The 3pool totals $8.2 million, and the current breakdown is: DAI: 2,364,188.2 (28.92%); USDC: 1,255,816.09 (15.38%); USDT: 4,554,979.24 (55.70%). The ideal weightage is 33.3% for each stablecoin, and USDT's weightage rose to 74% at one point.
This caused some concerns within the crypto community of a depeg event, which most recently occurred to USDC
. Although USDC eventually recovered its peg, the UST
(TerraUSD) depeg last May did not — leading to the implosion of the $40B Terra ecosystem
Tether previously reported to the New York Attorney General’s Office (NYAG) as part of its settlement obligations in 2021.
CoinDesk later filed, under New York’s Freedom of Information Law (FOIL), disclosure of Tether’s quarterly reports.
On June 15, Tether dropped the legal fight to keep that information private, allowing CoinDesk to receive the documents from the NYAG.
The company emphasized its “continued commitment to transparency” and added that the “information is now much less relevant.” The reports released are up to the middle of 2021.
Tether also highlighted that it has cut commercial paper reserves to zero and reduced its secured loans portfolio since the original reports.
Although CoinDesk has not reported on the reserve data yet, Tether has called the timing of the depeg suspicious. Tether's CTO Paolo Ardoino took to Twitter to address the situation, calling it an attack on Tether, and that they are prepared to "redeem any amount."
According to Lookonchain, certain whales were dumping USDT in Curve’s 3pool:
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