DEUS Finance’s stablecoin DEI becomes the next victim to lose pegs from “sequel” LUNA-UST

 246 total views


2022-05-17 08:22:39

After the collapse of TerraUSD (UST), a series of algorithmic stablecoins of various platforms were severely affected. And DEUS Finance’s stablecoin DEI has just become the latest “victim”.

DEUS Finance’s stablecoin DEI becomes the next victim to lose pegs from the “sequel” LUNA-UST

As the market continued to suffer greatly because of the LUNA-UST event, DEI – an algorithmic stablecoin of the DeFi platform DEUS Finance (DEUS) built on Fantom (FTM) failed to sustain. its rate against the USD when it fell below 0.5986 USD at press time.

DEI price movement as of 1:57 PM on May 17, 2022.  Source: CoinMarketCap
DEI price movement as of 1:57 PM on May 17, 2022. Source: CoinMarketCap

When the DEI price hit the lowest low in history, the market capitalization of the project also followed from nearly 100 million USD to about 52 million USD. However, despite DEI’s reliance, DEUS Finance’s governance token, DEUS, rose from $163.4 to $327.28, before falling to the current $209.

DEUS price movement as of 1:57 PM on 17/05/2022.  Source: CoinMarketCap
DEUS price movement as of 1:57 PM on 17/05/2022. Source: CoinMarketCap

This fallout is largely due to the aftermath of stablecoin concerns caused by the failure of UST-LUNA and the decision by the developers of Deus Finance to pause DEI buybacks. On the other hand, this is also considered the next significant step backwards for the project because only about 2 weeks ago, Deus Finance continued to be “visited” by hackers with a total loss of 13.4 million USD.

According to the main announcement from the project team in the past 24 hours, Deus Finance is proposing a bond program to fix the exchange rate problem for DEI. These bonds will allow users to deposit collateral and earn a fixed interest based on the maturity date.

While DEI is also an algorithmic stablecoin like UST, DEI is collateralized, meaning users can earn 1 DEI by depositing $1 worth of collateral by popular assets like USD Coin ( USDC), Fantom (FTM), Dai (DAI), WBTC or DEUS.

Similar to UST, DEI’s peg is stabilized by the mint – burn DEUS mechanism. When DEI is minted, DEUS collateral will be burned unless other tokens are used as collateral. On the other hand, when bringing DEI to redeem, DEUS will be minted.

However, DEI is not the only stablecoin that has been severely impacted by the LUNA-UST crisis. Over the weekend, Kava Network’s USDX also entered the de-peg wave this time around. Even the “king” of Tether (USDT) and some other leading algorithmic stablecoins such as Tron’s USDD or Near Protocol’s USN all lost value in the afternoon of May 12.

CHK synthesis

Maybe you are interested:

Maybe you are interested:

#DEUS #Finances #stablecoin #DEI #victim #lose #pegs #sequel #LUNAUST

Related Posts

Leave a Reply

Your email address will not be published.

Close Bitnami banner
Bitnami