Tether Dominates Curve's 3pool Liquidity With DAI, USDC Accounting for Just 15%

Tether accounts for 85% of the total liquidity in Curve's 3pool. While the stablecoin is seeing some volatility, the price remains firmly near the 1:1 U.S. dollar peg,

By Omkar Godbole

Nov 10, 2022 at 12:34 p.m. UTC

Updated Nov 10, 2022 at 4:55 p.m. UTC

Curve's 3pool (Source: Curve.fi) — Curve's 3pool shows investor preference for USDC, DAI over tether. (Curve.fi)

Omkar Godbole

Omkar Godbole was a senior reporter on CoinDesk's Markets team.

Follow @godbole17 on Twitter

Decentralized exchange Curve's 3pool, perhaps one of the most important pools for stablecoins in decentralized finance, is heavily imbalanced.

At press time, tether (USDT), the world's largest stablecoin by market value, accounted for 85% of the pool's liquidity. The other two pool components – MakerDAO's DAI and USDC – accounted for 15%.
Tether's dominance in the pool has doubled this week.
The renewed imbalance suggests an increased preference for DAI and USDC over tether – a phenomenon last observed after Terra's crash in May saw tether turn volatile and lose its peg.
USDT accounted for 60% of the pool in July as the fear about tether permanently losing its 1:1 U.S. dollar peg gripped the market.
That fear seems to have returned, with tether seeing minor volatility amid rumors that Alameda, FTX's sister concern, is swapping USDT for USDC.
USDT briefly fell to just under 98 cents soon before press time. Historically, tether has moved in the range of 98 cents to $1.02 most of the time.

UPDATE (Nov. 11, 12:56 UTC): Updates story with latest figures.

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