1/ How big is USDC's hole in SVB?
Known information USDC reserves of $43.2 billion, cash reserves of $11.4 billion (one said $9.8 billion, 25%-26%), the existence of 8 banks, it is said that the bulk of the NY Mellon (assuming 50%), the rest Assuming $ 2 billion in SVB, assuming a 100% loss, the limit of the impact of USDC will be off the anchor to 0.87
Normal estimate, assuming only $1bn in deposits, 80% recovery, theoretically de-anchoring to 0.99.
2/ The market is obviously more pessimistic: USDC: USDT now 0.97
If you hold USDC, there are several strategies (non-financial advice)
a If you expect things to go worst, then take a 3% haircut and switch to USDT.
b The strategy is to switch to DAI, DAI is still minted with PSM, USDC can be minted 1:1 to DAI, assuming a worst case scenario (de-anchored to 0.87), as USDC accounts for less than 40% of DAI minted https://t.co/F9hRLlG4WN
2/ This part will dilute the loss, i.e. the theoretical de-anchoring value of DAI will be at 95% (remember this is the theoretical value, not the market value).
c strategy is to go to the lending market such as aave's e-mode, pledge USDC to borrow USDT, emode pledge rate is 97%, but this is not recommended (there is a two-way price risk). https://t.co/k9183TrtTm
3/ If the loss is within 800 million dollars are considered manageable, this part basically rely on USDC treasury spread can earn back, of course, the most ideal is the weekend white knight shot to complete the restructuring, after all, SVB is the entire VC circle is extremely important link, the impact of the surface is too large.
If JP Morgan is a systemically important bank for US finance, SVB is a systemically important bank for global innovation.
As an additional strategy, if Coinbase has an account, or if Circle has an account, USDC can be converted 1:1 to USD, but it may be difficult for ordinary people to operate.
https://t.co/JqUgJy3RYV
Forgiven@forgivenever
Mar 11 23
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If you have USDC in your hand, look for friends who have Coinbase accounts, Coinbase is still 1:1 USD for USD, there is no fee, if this channel can not carry, it is a bit ugly, when the market may be more panic...
3.3 billion dollars, a bank will put 30% of the cash, enough adventurous, which is more than everyone estimated, the limit off the anchor value of 0.92
Circle@circle
Mar 11 23
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1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.
Mindao
@mindaoyang
Crypto for All | dForce @dforcenet | DeFi maxis | #investing, social movement, my opinion is mine (乱弹琴）
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