Will there be another stablecoin de-peg ?

2 min readMay 19, 2022

Terra’s UST depeg first started on Curve Finance and soon became visible in the 3pool. UST defender failed to close the gap between UST and DAI/USDC/USDT (75%-25%) on May 8th, the gap has since widened to 99%-1% while UST price drops to sub $0.1.

Curve UST-3CRV Pool proportion. Source: @elenahoo Dune Analytics

Depeg contagion has spread over to a wider group of stablecoins, especially to USDT. The 3pool proportion gap for USDT/USDC/DAI widened to 90%-5%-5% on May 12th. Although USDT has repegged recently, the fear is still there. This is shown in the disproportion in the 3Pool today, with USDT standing at 75%, still the less favourable one.

Curve DAI/USDC/USDT 3Pool proportion. Source: @elenahoo Dune Analytics

While USDT tested $0.95 low, FRAX and FEI had a similar drop to $0.97 on May. 12; while Abracadabra Money and Liquity’s stablecoin MIM and LUSD both dropped to $0.98.

Will there be another potential depeg event ? My Cointelegraph article “Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?” explains how you can detect early warning signals for such events through monitoring the Curve liquidity pools. You can also find my Curve de-peg tracker dashboard on Dune here: https://dune.com/elenahoo/CRV-Stablecoin-Pool


Specialise in NFT & DeFi analytics & modeling. Crypto and decentralisation enthusiast. You can DM me for questions or discussions on Twitter @elenahoolu