SNEAK PEEK

• TRON founder Justin Sun made a significant crypto swap of $82 million from USDC to DAI on Aave Protocol V2.
• Silicon Valley Bank’s recent closure has raised concerns about the stability of other banks and the broader financial system, particularly for stablecoin issuers.
• The Tether stablecoin community has expressed concerns about the impact of SVB’s closure on the stablecoin.

Recently, crypto mogul Justin Sun who is the founder of the TRON, has made a huge move in the crypto industry where he has transferred $82M USDC (USD Coin) from the Aave Protocol V2 and swapped them for $82 million DAI.

#PeckShieldAlert Justin Sun-labeled address has withdrawn ~82M $USDC from Aave Protocol V2 and swapped them for 82M $DAIhttps://t.co/ktJeYiRxCj pic.twitter.com/jJM2uHsepZ

— PeckShieldAlert (@PeckShieldAlert) March 11, 2023

Aave Protocol V2 is a decentralized finance (DeFi) lending platform that allows users to lend and borrow various cryptocurrencies and stablecoins, including USDC and DAI. Swapping one cryptocurrency for another can be done through decentralized exchanges (DEX) or automated market makers (AMM) like Uniswap or Sushiswap.

According to Bloomberg, Silicon Valley Bank (SVB’s) recent financial troubles have led to increased scrutiny of the banking relationships of stablecoin issuers. This has prompted questions about the adequacy of Circle’s risk management and collateralization practices, given the large exposure of USDC to a single bank.

The closure of Silicon Valley Bank (SVB) by the California Department of Financial Protection on Friday has sent shockwaves through the financial industry. The collapse of SVB, which had reported $212 billion in assets in the last quarter, is the second-largest bank failure in US history, behind only the demise of Washington Mutual during the 2008 financial crisis.

The impact of SVB’s closure has been felt far beyond its Silicon Valley base, as the bank had become a major player in the US financial system, serving many high-growth startups and venture capital firms. Its failure has raised concerns about the stability of other banks and the broader financial system.

After the revelation, the Tether (USDT) stablecoin community has been concerned about the present scenario, fearing that it will have an impact on the stablecoin.

#tether doesn’t have any exposure to SVB

— Paolo Ardoino 🍐 (@paoloardoino) March 10, 2023

This prompted Paolo Ardoino, the Chief Technical Officer (CTO) of Bitfinex, to tweet that since Tether has no exposure to SVB, the stablecoin is unlikely to be damaged by the present scenario.

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• Source: https://investorbites.com/tron-founder-justin-sun-makes-massive-82m-crypto-swap-on-aave-protocol-v2/