==Introduction==

Tether (USDT) is a stablecoin; a type of cryptocurrency that actively works to maintain its stable value through market mechanisms. It is used by investors who want to protect themselves from the volatility inherent in their cryptocurrency investments, but maintain its value within the cryptocurrency market, ready to be used seamlessly.

Tether is a fiat-backed stablecoin; a type of stablecoin that is backed by a fiat currency such as USD, CAD, AUD or even Yen (JPY). Tether was created to bridge the gap between fiat currencies and blockchain assets while offering transparency, stability and low fees to USDT users. Tether is pegged to the US dollar at a 1:1 ratio. There is no guarantee by Tether Ltd. for any right of redemption or exchange of Tether to USD. USDT cannot be exchanged directly for USD through Tether.

Each Tether (USDT) issued is backed by one U.S. dollar of assets. All Tether were initially issued on the Bitcoin blockchain via the Omni Layer protocol, although they can now be issued on any chain that Tether currently supports. Once a tether (a single unit of USDT) has been issued, it can be used just like any other coin or token on the chain on which it was issued. Currently, Tether is compatible with the Bitcoin, Ethereum, EOS, Tron, Algorand and OMG Network blockchains [1].

Tether uses Proof of Reserves, which means that at any point in time your reserves will be equal to or greater than the number of Tether in circulation.

USD Tether momentarily unpegged according to data from Coinbase and Coinmarketcap. The stablecoin changed hands at $0.96 before recovering to the $0.99 level.

While Tether CTO Paola Arduino called the event a technical glitch, experts in the cryptocurrency community believe USDT suffered a broken link or depeg. Following the FTT token implosion and the cryptocurrency market crash, Tether would have suffered a depeg [2].

==Methodology==

Some days ago, FTX was declared as bankrupty platform due to Alameda Research problems. It let USD Tether momentarily unpegged according to data from Coinbase and Coinmarketcap. The stablecoin changed hands at $0.96 before recovering to the $0.99 level.

Then, the main metrics to be analyzed are:

• USDT transfers and transferers by period
• Transfered volume and average trasnfered volume over time
• Distribution of transactions by size
• Distribution of volume by size
• Which are the most common USDT pools?
• USDT pools swap distribution by period
• USDT volume swapped by pool and period
• USDT price before and after liquidation

In the first graph we can see the transfers over time of USDT. We can clearly see how transfers skyrocketed after Binance announced the FTX liquidation. They went from 80k to approximately 180k daily transactions. However, we can see how there has been un uptrend since the initial of the evaluated period.

Secondly, we can see the transfers volume and average transfer size by period. We can see that the transfers volume increased just after the announcement from 4B to 10B, since before the FTX liquidation, the volume was steady.

Finally, we can see the number of users transfering by period. We can see that since September, the amount of users have been increasing. After the event, it seems that the trend continues.

In the first graph we can see the distribution of transactions by volume size per period. We can see that before Binance FTX liquidation, the range where there were more transactions was <$100k, with 84% of the volume. After the Binance FTX liquidation, this figure increased more. Still, the 100k+ volume continues to predominate, followed by the decrease of the 10k to 100k range.

We can see that the volume distribution by size and period has increase after Binance FTX liquidation in the >$100k range. In contrast, the range between $10k and $100k and $1k and $10k has decreased.

In the last two charts we can clearly see that the distribution of transactions by volume size per period has not changed much after the liquidation. But the trend is clearly visible, the $100-$1k and $1k-$10k ranges have increased. It is to say that some big traders are starting to move their capital using USDT.

==Key insights==

• The transfers over time of USDT went from 80k to approximately 180k.
• The transfers volume and the volume has increased after the FTX news, continuing the uptrend.
• In the average transfer size it has gone down a little bit.
• After Binance FTX liquidation, the number of users transfering by period increase.
• Before Binance FTX liquidation, the range where there were more transactions was <$100k, with 84% of the volume and this percentage increased after the news to 90%.
• After the Binance FTX liquidation, these transactions decreased But, the 100k+ volume continues to predominate, followed by the decrease of the 10k to 100k range.
• In the distribution of transactions by volume size per period , the $100-$1k and $1k-$10k ranges have increased.
• The pool of USDT that increased the most in volume swapped after the news has been the DAI-USDC-USDT curve LP pool, which went from a 26% to a 43%.
• In the distribution of swaps by pool and period, the WETH-USDT pool went from 40k to 31k.
• After the liquidation the USDT price has depeg from the 1$, which is so bad for the token. It seems that its now recovering bad its still far from the 1$.

In the first graph we can see the USDT volume swapped distribution by top pools considered over the past month. We can see that there is one pool that has radically changed its figures after Binance FTX liquidation. It is the DAI-USDC-USDT curve LP pool, which went from a 26% to a 43% distribution. On the other hand, the pool that has been decreasing more radically is the WETH-USDC 500 10 pool, which went from 22% to 11.

As we can see in the second graph, the distribution of swaps by pool and period has been analyzed. We can clearly see that there is one pool that has gone down, while the others have been quite stable. The WETH-USDC LP pool went from 40 to 31k swaps.

In the last two graphs we can see the USDT volume swapped distribution by pool over time and the distribution of swaps by pool over time. In both cases we can see that there is a pool that has increased rapidly, it is the DAI-USDC-USDT curve LP pool.

In the chart on the right we can see the USDT price before and after the liquidation and its difference from the 1$ peg value.

First of all, we can see that before the FTX liquidation, the token was closer to the 1$ peg. However, just after the news there was some movement there and the token started to depeg from the 1$ and radically decreased to 0.988.

From that point, it seems that the token has been recovering but its still far from the peg. Now, the USDT price is at 0.999.