In recent news, Lookonchain reported that the infamous whale CZSamSun has been buying USDC for arbitrage. Following the de-pegging of USDC, the whale made a bold move and deposited stETH and ETH to Aave and Instadapp, borrowed USDT, and purchased USDC. The whale has exchanged 28,577,700 USDT for 29,961,238 USDC, which can potentially yield over $1.3 million in profits once USDC returns to the peg.
Whale CZSamSun is buying $USDC for arbitrage!
Deposited stETH and $ETH to #Aave and @Instadapp, borrowed $USDT to buy $USDC.
So far, has exchanged 28,577,700 $USDT for 29,961,238 $USDC.
Over $1.3M in profit once $USDC is back to the peg!https://t.co/dYKj3qBqDl pic.twitter.com/JOaT6sNMr4
— Lookonchain (@lookonchain) March 11, 2023
In addition to these trades, CZSamSun has also borrowed 80 million USDC from Aave and converted it into DAI. If USDC goes to zero and DAI returns to the peg, this could result in significant profits for the whale.
Justin Sun also withdrew 82 million USDC from Aave and exchanged it for 82 million DAI just 1 hour ago, indicating a potential trend in DeFi trading.
However, some DeFi traders have not experienced the same level of success as CZSamSun and Justin Sun. As reported by AZCoin News, a trader allegedly swapped 2 million USDC tokens for USDT, only to end up with a meager 0.05 USDT in return. The trader’s transactions were detected and front-run by MEV (Maximal Extractable Value) bots on the Ethereum network, resulting in a loss of approximately $1.45 USD in gas fees.
The incident highlights the risks associated with DeFi trading, particularly when it comes to MEV. MEV is the profit that can be extracted by reordering transactions in a block and is a growing concern in the DeFi space. Despite these risks, DeFi trading remains popular among crypto traders, and whales like CZSamSun continue to make bold moves in the market.
Overall, it will be interesting to see how the DeFi market evolves and whether more traders will follow in the footsteps of CZSamSun and Justin Sun. However, it’s essential to remember the risks associated with this type of trading and exercise caution when navigating the volatile DeFi space.
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