Main Street USD (msUSD) lost its dollar peg on Saturday after verification provider Accountable ended its agreement with the protocol, erasing most of the token’s value within hours.
The token had traded close to $1 for months. It now changes hands near $0.29, down roughly 71% over 24 hours, with its market value near $30.5 million.
Accountable Ends the Deal That Backed msUSD
Accountable runs real-time proof-of-reserves checks that let firms verify holdings without exposing sensitive data.
Accountable says its network has verified over $1 billion in client assets, 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, powered by the firm, that tracked msUSD collateral.
On Saturday, Accountable said Main Street could not meet its standards and immediately cut off the relationship.
“Accountable has terminated its service agreement with MainStreet, effective immediately. MainStreet was unable to meet our verification standards… We will continue to hold this standard without exception,” they wrote in a post.
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With the feed switched off, the Accountable-powered dashboard no longer verifies any reserves behind msUSD.
A Yield Model That Leaned on Outside Parties
Main Street marketed msUSD as a dollar token always redeemable one-to-one for USDC. Staking it minted msY, a strategy token earning yield from options box spreads, a hedge-fund tactic pitched as institutional-grade.
That design leaned on the verification feed and on integrations with larger venues. Main Street had promoted an msY market on Morpho lending markets, one of the largest decentralized lenders, holding billions in deposits.
The token also runs on an upgradeable proxy contract. Security scanner GoPlus warns its owner can disable sells, mint new tokens, or change fees.
Analysts had questioned the yield-bearing stablecoin risks behind such products before the collapse. The case adds to another stablecoin depeg this year, after a token lost its peg when its backing came into doubt.
The case shows how fast confidence drains when one outside verifier steps away. A protocol built on a single feed inherits that partner’s decisions.
Main Street has not issued a public statement. In tandem, msY, the primary yield token issued by Main Street Finance, has also plummeted.
msY represents yield from the Main Street Finance protocol’s delta-neutral options strategies. The crash triggered extreme illiquidity (100% utilization, 138% borrow rates) on Morpho’s msY/USDC market, where an AlphaUSDC vault holds approximately $18 million exposure.
The depeg erased more than half the token’s market value in a day. msUSD price action and any rebound now hinge on whether the protocol can prove its backing.