MetronomeDAO's msUSD Drops 11% Below Anchor Due to Undercollateralized Synthetic Module

ChainCatcher report: According to Blockaid monitoring, the price of MetronomeDAO’s Synth USD (msUSD) on Ethereum, Base, and Optimism briefly dropped approximately 11% below its peg. Subsequently, MetronomeDAO released a post-incident report stating that its synthetic asset swap module suffered from insufficient collateralization, resulting in approximately 6,367 msETH and 4.57 million msUSD lacking adequate asset backing, with the impact concentrated primarily within this module. The report attributed the issue to delays in the Chainlink price oracle during swap execution, combined with Metronome’s fee design failing to adequately account for this variable—particularly on the Base chain. The team has deployed over $34 million in defensive positions and approximately $6.5 million in “last-resort” liquidity, which can be used to repurchase and burn sufficient assets to eliminate the gap if the peg drops by about 30%. The team has increased fees on all synthetic trading pairs and upgraded the protocol to support directionally isolated fee mechanisms. Priority will be given to ensuring treasury repurchases and burning of synthetic assets to restore 100% collateralization, without affecting MET token holders’ rights; MET buyback and distribution plans will proceed as scheduled.