Users flock to Curve as major DEXs lack stablecoin liquidity

In a tweet posted by user @cryptotutor Friday, the screenshots appear to show the stablecoin Magic Internet Currency (MIM) and USD Coin (USD/USD) trading pairs on decentralized exchanges or DEXs, Uniswap (Unite). Both are theoretically pegged 1:1 to the dollar.

“Magic Internet Money,” joked the cryptotutor, who tried to exchange about $1 million in MIM, but received an offer of only 728.6k USDC. Others were quick to complain on social media. In another screenshot, user @DeFiDownsin allegedly received an offer to exchange $984,000 worth of MIM for $4,173 in USDT on SushiSwap (sushi).

Curve, a popular stablecoin trading platform, supply its insights on the matter. “Uniswap is actually much better now than the screenshots show. Sushiswap was always not suitable for stablecoin-to-stablecoin swaps,” the Curve team tweeted.

During bear markets, investors typically flee holding volatile cryptocurrencies and flock to stable assets that generate fixed income.For example, deposits on Terra Luna’s flagship stablecoin savings protocol Anchor, which promises yields of up to 20%, have grown from $2.3 billion to $6.1 billion within the past 60 days.

However, capital flight has also caused problems, such as the disappearance of stablecoin liquidity from exchanges, causing their spreads to widen to unbearable levels.In addition, the entry of a large number of stablecoins into the Anchor protocol has also led to its Yield becomes unsustainable Because there aren’t enough borrowers to pay depositors’ interest.

But despite market volatility, Curve appears to be doing better than ever. according to For its developers, the platform saw a record daily trading volume of $3.6 billion, with total deposits exceeding $16.7 billion. Investors often seek to capitalize on the occasional difference between stablecoins and the theoretical pegs of fiat or other stablecoins.