fbpx
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Thursday, March 23, 2023
Online Crypto College
CREATE FREE ACCOUNT
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
No Result
View All Result
Online Crypto College
No Result
View All Result

Another algorithmic stablecoin, DEI, loses peg

May 17, 2022
in Trading
Reading Time: 3 mins read
A A
Another algorithmic stablecoin, DEI, loses peg
ShareShareShareShareShare
? Want to work with us? CryptoSlate is hiring for a handful of positions!

Another algorithmic stablecoin from Deus Finance, DEI, fell to as low as 54 cents on Monday, continuing what has been a tumultuous week for stablecoins.

The stableocoin first lost its peg against the dollar on Sunday but fell further in the last 24 hours. Though it is gradually recovering, it’s still trading below a dollar.

Since Terra’s UST lost its peg on May 9, it has had a ripple effect on the industry. An excellent example of this effect is DEI which isn’t entirely like UST. Although it’s algorithmic, it is also collateralized, unlike its counterpart.

Deus Finance collateralizes the stablecoin with its other token, DEUS, and other stablecoins. DEUS tokens comprise 10% of the reserve, while 90% are other stablecoins. The Fantom-based stablecoin currently has a market cap of $62 million.

To maintain its peg, the team uses arbitrage bots to monitor and adjust the collateral ratio of DEI, but the decline in the stablecoin market appears to have hit it hard. 

After dropping 3% on Sunday, it lost 20 cents overnight, leading to massive panic sell-offs that further impacted the price.

Deus’ team might also have contributed to the decline as the developers had halted a mechanism that allowed investors to exchange their DEI for other tokens.  

The developers explained that the exodus of traders from stablecoin pools led to lower liquidity and backing for DEI. The market cap of stablecoins has dropped by almost 1%, according to data on CryptoSlate in the last 24 hours.

Also, the fact that the protocol was the victim of a $13.4 million exploit last month might have affected it. Not forgetting that the value of the DEUS native token has dropped to as low as $162 earlier today –this price slump reduced its collateral ratio to less than 50%.

While the token has slightly recovered and is trading for $270, DEI has shed 31% of its value, and it is now trading for $0.6785, per data on CoinMarketCap.

The de-pegging of DEI has already affected the Scream DeFi protocol. The lending protocol had hardcoded the price of DEI to $1, leading to heavy loss after the price dropped as those holding DEI swapped it for other stablecoins.

Our team is working around the clock to restore the DEI peg. Mitigation measures were implemented immediately and solutions are being developed for long-term stability.

DEI peg mechanism: https://t.co/KKt3Tsam6F
Bond program: https://t.co/UBhE3XAY7K

Further updates to follow.

— DEUS Finance DAO (@DeusDao) May 16, 2022

However, the DEUS team has responded to the de-pegging by stating that it is

“working around the clock to restore the DEI peg. Mitigation measures were implemented immediately and solutions are being developed for long-term stability.”

Get an Edge on the Crypto Market ?

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits


Credit: Source link

Related articles

Coinbase CEO sells shares prior to SEC warning

Coinbase CEO sells shares prior to SEC warning

March 23, 2023
Binance’s Bitcoin liquidity for TUSD surges 250%

Binance’s Bitcoin liquidity for TUSD surges 250%

March 23, 2023
ShareTweetSendPinShare
Previous Post

Customers sue Coinbase for promoting and trading the GYEN token

Next Post

Crypto.com Reverses LUNA Trades Made During Friday 13th Glitch

Related Posts

Coinbase CEO sells shares prior to SEC warning

Coinbase CEO sells shares prior to SEC warning

March 23, 2023

Ad Coinbase CEO Brian Armstrong sold Coinbase shares prior to receiving a warning from the Securities and Exchange Commission (SEC),...

Binance’s Bitcoin liquidity for TUSD surges 250%

Binance’s Bitcoin liquidity for TUSD surges 250%

March 23, 2023

Ad Binance’s Bitcoin (BTC)  liquidity for its TrueUSD (TUSD) rose more than 250% on March 22 after it phased out...

Avalanche C, X-chains experience brief outage due to network bug

Avalanche C, X-chains experience brief outage due to network bug

March 23, 2023

Ad Avalanche chains X and C experienced brief outages and a period of degraded performance on March 23, as the...

Bitcoin breaks below $26.7K; liquidations rise over $230M in 24hrs

Bitcoin breaks below $26.7K; liquidations rise over $230M in 24hrs

March 22, 2023

Ad Bitcoin reached a new year-to-date high of $28,865 prior to the FOMC meeting this afternoon. However, it then proceeded...

Coinbase insiders sold $7.4M stocks in the last 30 days

Coinbase insiders sold $7.4M stocks in the last 30 days

March 22, 2023

Ad Coinbase insiders — including its chief executive officer Brian Armstrong and other executives — have sold $7.4 million worth...

Load More
Next Post
Crypto.com Reverses LUNA Trades Made During Friday 13th Glitch

Crypto.com Reverses LUNA Trades Made During Friday 13th Glitch

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Elon Musk’s Recent Tweet Grabbed Attention of Shytoshi and Shiba Inu Army

Elon Musk’s Recent Tweet Grabbed Attention of Shytoshi and Shiba Inu Army

March 19, 2023
Arbitrum’s ARB Token Airdrop Triggers OTC Trading

Arbitrum’s ARB Token Airdrop Triggers OTC Trading

March 22, 2023
Coinbase NFT launches new creator hub

Coinbase NFT launches new creator hub

March 17, 2023
Crypto is huge in Ukraine war. But cybercrimes, evasion risks call for new regulations – ThePrint

Crypto is huge in Ukraine war. But cybercrimes, evasion risks call for new regulations – ThePrint

March 18, 2023
Will Bitcoin [BTC] hit $1 million in 90 days? Real Vision CEO predicts…

Will Bitcoin [BTC] hit $1 million in 90 days? Real Vision CEO predicts…

March 20, 2023

About Us

We provide the latest crypto news, trading tools, and up-to-date education to students and traders all over the world.

ENROLL FOR FREE

Latest Crypto Headlines

  • Editorial: Why embattled crypto needs traditional rules, not a new … – Chicago Tribune
  • IOTA and Web3 Builder NakamaLabs explore the benefits of tokenization with real-world use cases
  • MetaMetaverse rebrands to MultiversalME for multiversal interoperability
  • Ripple’s Chief Legal Officer Reacts To SEC’s Wells Notice to Coinbase
  • Federal Reserve Admits Blindsided Oversight of SVB Collapse
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 - OnlineCryptoCollege.com - All rights reserved!

No Result
View All Result
  • Home
  • Live Crypto Prices
  • Crypto News
    • Bitcoin
    • Altcoin
    • Blockchain
    • Regulation
    • Trading
  • Learn Crypto For Free
  • Login

© 2018 JNews by Jegtheme.

  • bitcoinBitcoin(BTC)$28,309.002.98%
  • ethereumEthereum(ETH)$1,820.944.45%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.01-0.36%
  • binancecoinBNB(BNB)$330.571.72%
  • usd-coinUSD Coin(USDC)$1.000.03%
  • rippleXRP(XRP)$0.4448864.33%
  • cardanoCardano(ADA)$0.3709842.30%
  • dogecoinDogecoin(DOGE)$0.0772703.10%
  • staked-etherLido Staked Ether(STETH)$1,816.904.56%
  • matic-networkPolygon(MATIC)$1.13-0.06%
  • solanaSolana(SOL)$22.112.11%
  • binance-usdBinance USD(BUSD)$1.00-0.32%
  • polkadotPolkadot(DOT)$6.272.93%
  • litecoinLitecoin(LTC)$93.016.72%
  • shiba-inuShiba Inu(SHIB)$0.0000111.63%
  • tronTRON(TRX)$0.0663219.68%
  • avalanche-2Avalanche(AVAX)$17.564.07%
  • daiDai(DAI)$1.000.12%
  • uniswapUniswap(UNI)$6.212.00%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$28,405.003.14%
  • chainlinkChainlink(LINK)$7.575.23%
  • cosmosCosmos Hub(ATOM)$11.713.13%
  • leo-tokenLEO Token(LEO)$3.38-0.01%
  • ToncoinToncoin(TON)$2.04-15.63%
  • ethereum-classicEthereum Classic(ETC)$20.762.68%
  • moneroMonero(XMR)$156.194.10%
  • okbOKB(OKB)$44.80-0.79%
  • Aerarium FiAerarium Fi(AERA)$7.15-13.10%
  • bitcoin-cashBitcoin Cash(BCH)$128.151.26%
  • stellarStellar(XLM)$0.0924971.79%
  • filecoinFilecoin(FIL)$5.884.59%
  • AptosAptos(APT)$13.114.60%
  • true-usdTrueUSD(TUSD)$1.00-0.07%
  • lido-daoLido DAO(LDO)$2.32-2.81%
  • hedera-hashgraphHedera(HBAR)$0.0624400.96%
  • quant-networkQuant(QNT)$127.401.35%
  • ArbitrumArbitrum(ARB)$1.43-71.55%
  • crypto-com-chainCronos(CRO)$0.0700622.02%
  • nearNEAR Protocol(NEAR)$2.044.92%
  • vechainVeChain(VET)$0.0236133.13%
  • blockstackStacks(STX)$1.17-1.63%
  • algorandAlgorand(ALGO)$0.2182400.66%
  • internet-computerInternet Computer(ICP)$5.162.20%
  • apecoinApeCoin(APE)$4.143.40%
  • fantomFantom(FTM)$0.4916254.02%
  • the-graphThe Graph(GRT)$0.1532566.48%
  • eosEOS(EOS)$1.165.06%
  • the-sandboxThe Sandbox(SAND)$0.662.25%
  • decentralandDecentraland(MANA)$0.613.73%