{"id":70652,"date":"2022-11-27T18:28:41","date_gmt":"2022-11-27T16:28:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70652"},"modified":"2025-09-08T03:32:41","modified_gmt":"2025-09-08T00:32:41","slug":"wbtc-and-steth-lose-pegs-to-underlying-assets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/wbtc-and-steth-lose-pegs-to-underlying-assets\/","title":{"rendered":"WBTC and stETH Lose Pegs to Underlying Assets"},"content":{"rendered":"<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-wrapped-token\">wrapped token<\/a> Wrapped Bitcoin (WBTC) and stETH from Lido&#8217;s liquid staking service have lost parity with Bitcoin and Ethereum, respectively.<\/p>\n<p>Since November 21, the price of WBTC has repeatedly fallen away from the first cryptocurrency. The maximum deviation from the benchmark value stood at 2.5%, according to <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/wrapped-bitcoin\\\">CoinGecko<\/a>. As of writing, the token trades near 0.99 BTC (on Binance).<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"466\\\" src=\\\"https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17-1024x466.png\\\" alt=\\\"WBTC and stETH tokens lost their peg to the 'original' assets\\\" class=\\\"wp-image-191881\\\" srcset=\\\"https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17-1024x466.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17-300x137.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17-768x350.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17-1536x699.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/WBTCBTC_2022-11-27_17-44-17.png 1814w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>A time-series chart of WBTC\/BTC on Binance. Data: <a href=\\\"https:\/\/www.tradingview.com\/symbols\/WBTCBTC\/\\\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>In the community <a href=\\\"https:\/\/twitter.com\/DU09BTC\/status\/1596188005592891392?s=20&#038;t=8tIvuTqK1_lLDHYJP79Baw\\\">raised concerns<\/a> about active minting of the token by Alameda Research and CoinList. According to <a href=\\\"https:\/\/dune.com\/Messari_Jack\/wbtc_1\\\">Dune Analytics<\/a>, the Sam Bankman-Fried-affiliated company participated in minting 101,746 WBTC, and the exchange issued 48,408 WBTC \u2014 ranking first and second by the metric.<\/p>\n<p>On November 11, the FTX Group (including Alameda Research) <a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">filed<\/a> for bankruptcy. A few days later CoinList <a href=\"https:\/\/forklog.com\/en\/news\/users-report-withdrawal-problems-on-coinlist-platform\">paused<\/a> withdrawals of several assets. Some users report they still cannot withdraw funds. The exchange <a href=\"https:\/\/forklog.com\/en\/news\/coinlist-denies-liquidity-problems-amid-market-fud\">called<\/a> such information rumors.<\/p>\n<p>In response to online information, BitGo&#8217;s chief operating officer Chen Fang stated that every WBTC issued is backed 1-to-1 by an &#8216;original&#8217; asset. He said the data can be verified on chain.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">BitGo is just the custodian \u2014 all end user minting\/burning must go through one of the merchants in the WBTC network or trade it at an exchange<\/p>\n<p>If folks capitulates to fake news, the market makers win \u2014 every WBTC is 1:1 backed, verifiable on chain<\/p>\n<p>\u2014 \ud83c\udf5f Chen Fang (@chenbfang) <a href=\\\"https:\/\/twitter.com\/chenbfang\/status\/1596225826995179520?ref_src=twsrc%5Etfw\\\">November 25, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Udi Wertheimer also noted that Alameda Research was merely a middleman in WBTC issuance \u2014 the company took Bitcoin from customers and sent the cryptocurrency to BitGo for minting wrapped tokens. He stressed that the firm did not custody the assets.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">The crypto misinformation HAS TO STOP.<\/p>\n<p>This isn\u2019t how WBTC works. Alameda was a \u201cWBTC merchant\u201d which means they\u2019d accept BTC from customers and send it to BitGo to mint WBTC.<\/p>\n<p>Alameda NEVER custodied BTC themselves!<\/p>\n<p>You can track BitGo\u2019s BTC reserves on chain. Backed 1-to-1. <a href=\\\"https:\/\/t.co\/6o1cIu1xWS\\\">pic.twitter.com\/6o1cIu1xWS<\/a><\/p>\n<p>\u2014 Udi Wertheimer (@udiWertheimer) <a href=\\\"https:\/\/twitter.com\/udiWertheimer\/status\/1596207974519042048?ref_src=twsrc%5Etfw\\\">November 25, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>According to <a href=\\\"https:\/\/etherscan.io\/token\/0x2260fac5e5542a773aa44fbcfedf7c193bc2c599#balances\\\">Etherscan<\/a>, the largest holders of WBTC are addresses linked to MakerDAO, Aave and Compound. <\/p>\n<p>Prices of stETH from Lido also lost parity with Ethereum. According to <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/lido-staked-ether\\\">CoinGecko<\/a>, the maximum deviation reached almost 3% (recorded on November 24). As of writing, the asset trades near 0.98 ETH (on Curve).<\/p>\n<p>Such dynamics are linked to investor concerns and outflows from Curve pools. According to <a href=\\\"https:\/\/dune.com\/LidoAnalytical\/Curve-ETHstETH\\\">Dune Analytics<\/a>, since the start of November the asset volume in relevant Curve ETH\/stETH smart contracts has fallen by 62%.<\/p>\n<p>Since May 2022, the value of assets in Curve ETH\/stETH liquidity pool <a href=\"https:\/\/forklog.com\/en\/news\/since-early-may-the-largest-steth-liquidity-pool-has-shrunk-sevenfold\">has fallen more than sevenfold<\/a>. Experts linked the situation to the unwinding of positions by major investors such as Alameda Research and Three Arrows Capital.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news in our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Against the backdrop of the collapse of the FTX exchange and Alameda Research, Wrapped Bitcoin (WBTC) and stETH from Lido&#8217;s liquid staking service have lost parity with Bitcoin and Ethereum, respectively.<\/p>\n","protected":false},"author":1,"featured_media":70653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1387,1655],"class_list":["post-70652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-lido","tag-wrapped-bitcoin"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=70652"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70652\/revisions"}],"predecessor-version":[{"id":70654,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/70652\/revisions\/70654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/70653"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=70652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=70652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=70652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}