Cardano Whale Loses $6M in ADA-to-USDA Swap amid Low Liquidity
On November 17, a dormant Cardano whale sold 14.4 million ADA (≈$6.9 m) for USDA on decentralized exchanges. Due to the ADA/USDA pool’s thin liquidity, the automated market maker inflicted severe slippage: the trader received only 847,695 USDA (≈$847 k), losing over $6 m in seconds and briefly pushing USDA above $1.25. The wallet paid more than $8 per USDA, eight times the peg rate. On-chain analysts mocked it as the “Onchain Clown of the Month.” The pool later recovered to around $1.03, but the incident underlined the risks of low-liquidity swaps in the Cardano ecosystem. Traders are urged to check pool depth, set slippage limits, split large orders, and consider multiple swap paths or centralized exchanges to manage DeFi risks.
Bearish
Short-term, the massive depeg and price spike in USDA amid severe slippage are likely to erode trader confidence in low-liquidity stablecoin pools, prompting sell-offs and reduced demand, which drives a bearish outlook. Long-term, persistent liquidity issues and execution risks in the ADA/USDA AMM may deter large trades and reduce overall usage of USDA, further weakening its peg stability. These factors combined suggest a negative impact on USDA’s market stability.