According to Blockaid monitoring, the price of MetronomeDAO’s msUSD on Ethereum, Base, and Optimism once dropped approximately 11% below its peg. MetronomeDAO reported that a collateralization shortfall in the synthetic asset swap module resulted in approximately 6,367 msETH and 4.57 million msUSD being inadequately backed. The issue stemmed from a delay in the Chainlink price oracle during swap execution, combined with Metronome’s fee design not adequately accounting for this variable, with Base experiencing more severe impacts.
MetronomeDAO's msUSD Deviates from Peg; Synthetic Asset Module Faces Undercollateralization
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Summary
Digital asset news: MetronomeDAO’s msUSD traded at an 11% discount on Ethereum, Base, and Optimism. The project disclosed undercollateralization in its synthetic asset swap module, impacting 6,367 msETH and 4.57 million msUSD. The issue was caused by Chainlink oracle delays and flawed fee design, with the Base chain most affected. On-chain data highlights the impact of execution timing and collateral management in DeFi systems.
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