USDC Key Nodes and Risks Identified by Encrypted KOL “Shenyu”

03/11/2023 08:21 • Metaverse Matters • 92 views

It is reported that the encrypted KOL “Shenyu” tweet analysis said that the USDC has two key nodes. The first is that there are 3 billion USDC mortgages in the MKR on the chain to cast DAI. Once the liquidation is triggered, the losses will be heavy; Second, the cash withdrawal tide of banks opened on Monday, which requires attention to the situation of bank runs. Coin An currently holds more than 3 billion USDCs, and needs to pay attention to the dynamics of exchanges and market makers.

Viewpoint: There are 3 billion USDC mortgages in MKR on the chain to cast DAI, triggering liquidation will cause heavy losses

Analysis based on this information:

In recent weeks, the world of cryptocurrency has been buzzing with news about the digital dollar, also known as the USDC. One particular encrypted KOL “Shenyu” recently shared an analysis on Twitter regarding the USDC’s key nodes and potential risks associated with its use.

According to “Shenyu,” there are two key nodes associated with the USDC that should be closely monitored. The first is the fact that there are 3 billion USDC mortgages in the MKR on the chain to cast DAI, which could potentially trigger heavy losses if liquidation is triggered. MKR is a governance token that is used to manage the collateralized debt position (CDP) of the Dai stablecoin. The Dai stablecoin allows users to earn interest on their funds while also retaining a fixed value relative to the US dollar.

The second node highlighted by “Shenyu” is the cash withdrawal tide of banks that is said to open on Mondays, which could potentially lead to bank runs. Bank runs occur when a large number of customers simultaneously withdraw their deposits from a bank, leaving the bank unable to meet customer demands. In such a scenario, there is a risk that Coin An may not be able to meet the exchange and market maker demands.

Coin An is a digital asset exchange platform that provides a safe and secure platform for users to trade cryptocurrencies. It is currently holding more than 3 billion USDCs, and as such, it is vital that the company pays close attention to the dynamics of exchanges and market makers.

Overall, it is clear that the USDC is not immune to risks, despite its popularity in the cryptocurrency world. Hence, it is essential for investors and stakeholders to be aware of the potential risks of investing in USDC, especially its liquidity risks, and to adopt necessary measures to mitigate them.

In conclusion, the analysis by “Shenyu” offers valuable insights into the key nodes and risks associated with the USDC, and underscores the need for caution in investing in digital currencies.

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