Because the market continues to mourn over losses on the Terra (LUNA) UST and LUNA debacle, DEI, a stablecoin used as a collateral mechanism for third-party devices constructed on the Fantom (FTM)-based decentralized finance (DeFi) protocol DEUS Finance (DEUS), has failed to take care of its greenback peg, falling under $0.60 cents on Monday.
As the value of DEI hit an all-time low of $0.52, its market capitalization additionally adopted, dropping from nearly $100 million to round $52 million. Nevertheless, regardless of the depegging of its stablecoin, DEUS Finance’s governance token, DEUS, went up from $163.40 to $327.28, earlier than falling to $255.36.
On the time of writing, DEI’s worth is $0.66 with a market capitalization of $59 million. This follows stablecoin fears caused by the UST and LUNA debacle and a choice by Deus Finance builders to pause DEI redemptions. Nevertheless, according to its official Telegram channel, the DEI peg might be restored within the subsequent 24 hours.
Whereas DEI can be an algorithmic stablecoin like UST, the DEI stablecoin is collateralized, which means that customers are in a position to mint 1 DEI by depositing collateral price $1. These could be property like USD Coin (USDC), Fantom (FTM), Dai (DAI), WBTC or DEUS.
Much like UST, DEI’s peg is stabilized by a mechanism that includes the minting and burning of DEUS. When minting DEI, a DEUS collateral is burned until different tokens are used as collateral. Alternatively, when redeeming DEI, DEUS is minted.
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Again in March, the DeFi venture turned a sufferer of a hack that resulted in DAI and Ether (ETH) losses price $3 million. Due to this, the platform determined to shut its DEI lending contract. A day after the Deus Finance exploit, DeFi protocols Agave and Hundred Finance additionally reported exploits that resulted in losses of varied cryptos that have been price a complete of $11 million.