not a defi expert, but I think the most common way to do this is to use Aave:
1. borrow Tether
2. swap it for USDC (or stablecoin of choice)
3. wait for Tether to crash
4. pay off your Tether loan at a fraction of its original value
risk is that your tether loan will be accruing interest (currently 1.4%) so if it doesn't crash or takes too long to crash you could be liquidated.
There's also the risk that USDC (or alternate) will lower in value due to Tether crashing, even if they were merely also crypto. It may be necessary to convert to non-crypto assets instead.
Of course, then there's the risk that non-crypto assets will be affected by the same…
Not my house. I use kraken so I think I will remain less affected than users of other, less credible, exchanges.
Cryptocurrency has been working just fine before tether, and it's going to work just fine without it. We've seen ups and downs. So I don't think it's that crazy when the house has failed many times in the history of cryptocurrency.
If you need to ask this question you should not be doing this. It's been plugging away without issues for years. What makes you think you can suddenly outtime the market on its collapse?
You haven't gained any competitive advantage in timing though unless you have some unique insight. You just read a press release that is available to every other market participant, some of whos full time job is to do things like analyze balance sheet risk.
Anyway good luck, just beware that you aren't making some kind of smart money play.
