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$70M in Fresh On-Chain USDC Positions at Risk of Liquidation if Stablecoin Depegs by 10%

Traders using decentralized finance (DeFi) protocols to bet on a USDC revival over the weekend are at risk of eight-figure liquidations if the stablecoin loses its $1 peg again this week.

According to data from DeFi Llama, there are $70.8 million in positions that can be liquidated between $1.00 and $0.895, with two recently filled positions on interest protocol Compound being worth $20.7 million and $15.4 million, respectively.

USDC slumped to a low of $0.88 on Saturday after Circle, the company that issues the stablecoin, announced that it had $3.3 billion tied up in troubled Silicon Valley Bank (SVB).

Circle revealed Sunday that the $3.3 billion would be available at U.S. banks on Monday, quelling fears over a potential suspension in redemptions. Circle has a facility that allows users to redeem one USDC token for one U.S. dollar.

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