Frax Depeg Event

USDC exposure caused contagion from SVB collapse

severeMarch 10, 2023 → March 13, 2023Duration: 72h

Lowest Price

$0.870

-13.0% from peg

Recovery Time

72h

Fully resolved

Severity

severe

>5% deviation

FRAX SVB Contagion Depeg (March 2023)

FRAX lost its peg during the SVB banking crisis due to significant exposure to USDC.

March 10: As USDC depegs, FRAX follows due to USDC backing.

March 11: FRAX drops to approximately $0.87.

March 13: Recovery begins as USDC restores its peg.

Exposed risks of "stablecoin composability"

FRAX moved toward full collateralization

Led to reduced USDC dependency