Main Street USD (msUSD) lost its dollar peg on Saturday after the Accountable guarantor terminated its agreement with the protocol, wiping out the token’s value within hours.
The token traded around $1 for months. It is now changing hands around $0.29, down nearly 71% in 24 hours, and its market value is around $30.5 million.
Accountable Terminates Contract That Supported msUSD
Accountable runs real-time location verification checks that allow companies to verify their assets without revealing information.
Respondent it says its network has secured more than $1 billion in customer products, including those of Galaxy and Amber Group. It is backed by Pantera Capital.
Main Street promoted itself as Accountable-verified and ran a public dashboard, managed by the company, which tracked the msUSD collateral.
On Saturday, Accountable said Main Street could not meet its standards and immediately severed the relationship.
“Accountable has terminated its service agreement with MainStreet, effective immediately. MainStreet was unable to meet our assurance standards… he wrote in the post.
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With the shutdown, the Accountable-powered dashboard does not verify any backups behind msUSD.
A Harvest Model That Leaned on Outdoor Parties
Main Street traded msUSD as a dollar token that could always be redeemed one-time for USDC. Staking it minted msY, a method of obtaining yield from box options, a hedge-fund method that is set up like schools.
That design was based on food proofing and integration with large spaces. Main Street inspired the msY market Morpho rental marketsone of the largest lenders with billions in assets.
The token also applies to a flexible proxy agreement. The security scanner GoPlus warns the owner may cancel the sale, create new tokens, or change the fee.
Experts asked this question Stablecoin risks bear fruit behind such things before they fall. The case adds up stablecoin depeg this year, the brand lost a peg when its support came into question.
This case shows how quickly trust can be lost when an external guarantor leaves. A plan built on one meal takes your partner’s decisions into account.
Main Street did not issue a public statement. Similarly, msY, the primary yield indicator provided by Main Street Finance, has also fallen.
msY represents the yield from the Main Street Finance protocol’s delta-neutral options strategy. The crash led to a massive rout (100% leverage, 138% rental rates) in Morpho’s msY/USDC market, where AlphaUSDC’s warehouse held nearly $18 million.
Depeg wiped out more than half of the market value in one day. msUSD price today and each restart depends on whether the protocol can prove that it supports it.
A note Main Street msUSD Stablecoin Loses Dollar Peg with 90% Loss appeared for the first time BeInCrypto.
