Odaily Planet Daily reports that, according to Mainstreet monitoring, the algorithmic USD-pegged stablecoin Main Street USD (MSUSD) has depegged, trading at $0.36, a 64.1% decline over the past 24 hours. Mainstreet responded that assets remain fully backed; the recent shutdown of the third-party reserve proof dashboard does not indicate a reduction in assets or a deterioration in portfolio quality, but rather issues at the infrastructure and reporting levels. With the reserve proof page offline, oracles supporting Morpho markets are expected to pause within the next 24 hours, leading to accelerated liquidations among leveraged circular borrowing users and a noticeable rise in borrowing rates. Mainstreet stated that its current priority is to protect net asset value (NAV) and maximize protocol liquidity, while continuing to prioritize user fund safety, maintain NAV, and restore normal market operations as soon as possible.
Algorithmic stablecoin MSUSD depreciates to $0.36, dropping 64.1% in 24 hours.
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Summary
The algorithmic stablecoin MSUSD is now trading at $0.36, a 64.1% drop in 24 hours, according to Altcoins to Watch. Main Street USD asserts that its assets remain fully backed, and the recent dashboard outage is due to infrastructure issues, not a reduction in assets. The oracle for the Morpho market may pause within 24 hours, potentially triggering faster liquidations and higher borrowing rates. Main Street is focused on safeguarding net asset value and liquidity while preserving user funds and restoring operations. The sharp decline has pushed the Fear & Greed Index toward extreme fear, signaling heightened market anxiety.
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