In response to the unusual fact that the US dollar coin (USDC) was steadily pegged to the US dollar caused by the bankruptcy of the trading partner Silicon Valley Bank (SVB), the landing code whale reported serious losses and now seems to have begun a series of capital outflows to protect property. Du Jun, the founder of the cryptocurrency exchange, posted:

"[I] can't avoid King Luna, 3AC, or even FTX (and bankruptcy), but I can't hide from Silvergate, nor can I avoid SVB and USDC. Learned about several login password masters; including myself, the cumulative loss of stocks and deposits exceeded 1 billion US dollars. I'm very unhappy, and now it's time to cut back on the budget.

It is reported that on the same day, blockchain technology celebrity and Tron founder Justin Sun withdrew 82 million USDC from the decentralized Finance (Defi) agreement AAVE v2 due to a series of deals and swapped with DAI (DAI). At the time of release, $82 million USDC was worth $75.26 million.

Referring to DAI, MakerDAO, the publisher of stable coins, submitted an emergency agreement on March 11th, including a call to ban the use of USDC to forge DAI to avoid panic selling. MakerDAO is one of the larger holders of stable currencies, with a reserve pledge of more than 3.1 billion USDC ($2.85 billion), which is thus pegged to the dollar. Then, the new project of adding Dai to its code to learn the login password also suffered a loss because of the chain reaction.

Curve Finance, a popular Defi agreement for stable stock trading, reports that daily turnover reached an all-time high of $5.67 billion as a result of such events. In this context, the agreement sets a total of only $3.77 billion. Some other service platforms simply cannot handle many of the trade requirements related to USDC. In one accident, a customer only got 0.05 USDT after paying more than 2.08 million USDC swaps, causing permanent losses. In an update, KyberSwp, a decentralized trading centre that undertakes to help with swaps, said it was "helping to recover assets" and was contacting users on the issue.

According to Loki Zeng, a well-known DEFI investment analyst at Xinhuo Hi-Tech, Circle's reserves are distributed among US $32.4 billion in national bond instruments, US $3.3 billion deposits in SVB and US $7.8 billion deposits in banks and other financial institutions. Zeng Ming wrote:

"for USDC to fail, it must meet three conditions: SVB and three other risky financial institutions have more deposits, and the utilization rate of such deposits is still relatively low, and USDC cannot mitigate such losses."

Zeng Ming added that his own view is that "the probability of something going wrong is relatively low, and even if something goes wrong, it will not be as serious as FTX." However, the above DEFI investment analyst added that his net worth for USDC could be "$0.885 under special circumstances and $0.985 under normal circumstances". As of press time, the price of USDC has fallen 8.30% to $0.9163 in the past 24 hours.

Alex Swanavik, CEO of blockchain technology profiling firm Nansen, also commented that Circle and USDC "can do it". However, Svanevik also warned that Circle provides for "first-class procedures in the next few days", such as "perfect redemption" and does not call for "assistance in advocacy planning". In another tweet, Svanevik also said that a customer removed 25 million USDC from his PulseX scapegoat wallet and exchanged it for wear.