Venture capital firm Three Arrows on Tuesday swapped about $33 million worth of Lido Staked Ethereum (stETH) for Ethereum on DeFi platform Curve.
The move comes as stETH prices diverge further from ETH prices in secondary markets, pressuring traders using the DeFi token as collateral.
Three Arrows is the second major holder of stETH to dump the token since last week. Crypto trader Alameda Research had swapped about $1.5 billion of the token– all of its holdings- for ETH last week. stETH’s divergence from ETH can likely be tied to that trade, which also occurred on Curve.
The DeFi token is currently trading at $1,103.15, compared with ETH’s price of $1,173.96.
Three Arrows still has more stETH to dump
While the $33 million swapped by Three Arrows represents a substantial amount of the firm’s stETH holdings, Three Arrows still holds about $22 million of the token in one of its wallets, according to crypto commentator @mhonkasalo.
