Recently, the value of the Pax Dollar (USDP) stablecoin deviated from its intended peg to the US dollar, leading its price to spike up to $1.29 on April 16, before eventually stabilizing at around $1. A representative from Paxos explained that this depeg was not due to any issues with their protocol, but rather resulted from errors in pricing aggregators.
During a notable rise in market value for USDP, reaching $181 million from its previous $140 million, the depegging event took place when the coin hit a price of $1.29. However, the spokesperson assured that USDP would continue to be redeemable for its fair value through Paxos, regardless of any temporary price changes.
On April 16, an unidentified trader suffered a loss of over half a million dollars ($529,000) when their Circle USD Coin were liquidated. This occurrence took place shortly following a surge in the value of Pax Dollar, reaching $1.18. The Paxos representative urged traders using various platforms to closely monitor the order books to prevent similar risks in the future.
An account with the address 0x09a5…a87f underwent a liquidation process, resulting in approximately $529,000 worth of USDC being taken, following a surge in the value of USDP (Pax Dollar) to reach $1.18.
— PeckShieldAlert (@PeckShieldAlert) April 17, 2024
The value of Pax Dollar (USDP) has seen noticeable price swings at times. It reached a low of $0.87 on March 13, 2020, and peaked at $2.02 on November 16, 2021.
Temporary depegging can lead to market instability and losses. Paxos remains dedicated to ensuring the stability of Pax Dollar. It attributes the recent incident to external pricing aggregator issues rather than issues with the protocol itself.
Also read: Paxos and Hashnote Collaborate for PayPal Stablecoin and USYC Token Integration.
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2024-04-18 16:20