May 28, 2023

Three Arrows Capital Withdraws $33M in stETH from Curve's Liquidity Pool

Three Arrows Capital Withdraws $33M in stETH from Curve's Liquidity Pool

Associated with bankruptcy-prone cryptocurrency hedge fund Three Arrows Capital (3AC), the address displayed 20 945 stETH (~$33M) from the liquidity pool at Curve Finance.

9,400 ETH, 20,945 ETH and other assets worth $57.86 million remain on the wallet.

Partner at Cinneamhain VenturesAdam Cochran noted that amid Aave's suspension of borrowing in Ethereum ahead of The Merge, many users began to close positions in Curve, which could be a remake of the events of this summer.

An analyst under the pseudonym DeFiyst reported growththe interest rate on borrowing in Ethereum from 10% to 20%, which puts pressure on the stETH / ETH exchange rate. The situation may be aggravated by the imminent sale of 3AC “staken ether”.

"It hurts to be in one of these strategies right now" He wrote.

The discount of stETH to ETH in Curve widened to 4.15%. Analyst Colin Wu did not rule out interest in capitalizing on potential PoW forks of the network of the second largest cryptocurrency by capitalization.

At the same time, the CEO of the Nansen analytical platformAlex Svanevik discovered a significant influx of "smart money" into staked versions of ETH - stETH, aSTETH, cbETH, icETH and the withdrawal of blocked stETH on Aave.

Recall that the developers of Ethereum planned the migration of the main network to the Proof-of-Stake algorithm around September 15th.

The other day they activated the Bellatrix update. The upgrade is the last step before The Merge.

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