Three Arrows Capital (3AC) took advantage of the recent flash crash to buy 751,147 LINK, worth $10 million.
3AC is one of the largest collateral firms in the Compound protocol with $156 million in various tokens.
According to a report by Nick Chong, the investment firm Three Arrows Capital (3AC) has invested an estimated $10 million in LINK. The firm made the purchase during Bitcoin’s flash crash when the cryptocurrency lost nearly $1,000 in less than an hour and then recovered back to $18,000. LINK had a drop from $14 to $12, an opportunity that 3AC took to make its investment.
The firm bought, according to Nick Chong, 351,147 LINK initially. Furthermore, 3AC picked up an additional 400,000 LINK to accumulate 751,147 LINK. In summary, it is estimated that Three Arrows Capital has an estimated $14 million in LINK placed at the address.
It appears that Chainlink LINK fundings acqured by 3AC are used as collateral in Ethereum’s DeFi protocol Aave in conjunction with 275 YFI. CHONG notes that regarding the investments in LINK the collateral is used in acquiring stablecoins:
The Three Arrow Capital is withdrawing stables and sending them to FTX. We’ve seen millions upon millions sent to an FTX address. Besides It is unclear what happens to the funds once they’re there also The Three Arrow Capital is often on the profit and volume leaderboards on FTX.
the firm is also part of the decentralizing exchange SUSHI yield farming with $1.5 million allocated to the governance token.
In Compound, 3AC is a provider of $50 million in ETH, $6 million in DAI, and $100 million in WBTC.
On the same line, investment firm Polychain Capital was the largest purchaser of the Yearn.finance protocol governance token (YFI)
in the last five weeks with a purchase of 570 YFI. Some analysts believe that YFI could recover after its recent decline and reach a new all-time high of $100,000.