Trader Loses $529,000 as USDP Stablecoin Surges Above $1.18

On April 16, the price of Paxos’ stablecoin USDP soared past $1.18. This deviation from its peg resulted in the liquidation of $529,000 USDC for one trader, according to PeckShield.

#PeckShieldAlert #Liquidation An address (0x09a5…a87f) was liquidated ~529K $USDC after $USDP (Pax Dollar) surged to $1.18 pic.twitter.com/UbWxx8kZU4

— PeckShieldAlert (@PeckShieldAlert) April 17, 2024

The anomaly was observed from 21:20 to 00:00 (MSK/Kyiv). The peg was fully restored an hour after this period.

Earlier, the Aave-inspired lending protocol Pac Finance, based on the L2 solution Blast, faced unexpected user position liquidations amounting to $26 million.

In the first two weeks of April, the volume of forced position closures in Ethereum’s lending markets reached $127.8 million, surpassing monthly figures not seen since at least June 2022.

Moody’s recorded 609 depegs of major stablecoins over the past year. In total, there were 1914 “depegs” from January to September.

The last significant episode of this kind occurred with TUSD in January 2024.