The post USD1 Brief Premium as Binance Launches 20% Fixed Annualized Deposit Promo, Thin BTC/USD1 Liquidity Triggers Swift Arbitrage appeared on BitcoinEthereumNewsThe post USD1 Brief Premium as Binance Launches 20% Fixed Annualized Deposit Promo, Thin BTC/USD1 Liquidity Triggers Swift Arbitrage appeared on BitcoinEthereumNews

USD1 Brief Premium as Binance Launches 20% Fixed Annualized Deposit Promo, Thin BTC/USD1 Liquidity Triggers Swift Arbitrage

COINOTAG News reported on December 26 that Solv Protocol‘s Business Development Lead Catherine disclosed a collaboration between Binance and USD1 to roll out a 20% fixed annualized deposit promotion. The promo spurred a wave of USDT-to-USD1 swaps, with USD1 briefly trading at a premium of about 0.39%.

In this setup, some funds were lent via the Lista DAO lending market, using SolvBTC or SolvBTC-BTCB as collateral to borrow USD1 and gradually liquidate into the spot market to meet demand. A portion of the activity involved traders placing market orders to sell BTC against USD1, aided by the product’s thin liquidity.

However, the depth on the new pair was limited, and a sizable market order briefly drained the buy side, temporarily depressing BTC prices before arbitrage bots restored balance. CZ clarified that the exchange did not participate in these trades; with no index inclusion, the episode did not trigger liquidations.

Source: https://en.coinotag.com/breakingnews/usd1-brief-premium-as-binance-launches-20-fixed-annualized-deposit-promo-thin-btc-usd1-liquidity-triggers-swift-arbitrage

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