The collapse of the UST stablecoin, which took pride in its algorithm, has left the entire crypto industry shaken. Who would have imagined that one of the top 10 coins and top 3 stablecoins would fail so miserably? It was such a massive collapse that there were bound to be after-effects. The same can be seen as Deus stablecoin (DEI) loses its dollar peg and Tether’s market cap started falling. Deus is also based on an algorithm and has fallen nearly 41% and is trading at 59 cents.
Deus stablecoin (DEI) loses dollar peg
DEI is a much smaller stablecoin when compared to USDT, UST, or USDC. Its market cap is around $39 million, as reported by CoinGecko. The lowest price that it touched during the depeg event was $0.525 and has recovered a bit since then. However, it is difficult to say whether the team will be able to get DEI back to $1 again.
Our team is working around the clock to restore the DEI peg. Mitigation measures were implemented immediately and solutions are being developed for long-term stability.
DEI peg mechanism: https://t.co/KKt3Tsam6F
Bond program: https://t.co/UBhE3XAY7KFurther updates to follow.
— DEUS (@DeusDao) May 16, 2022
The team of Deus finance has tweeted that they are working to restore the peg, but they shared no official information about why the crash happened.
The functioning of DEI stablecoin
Unlike UST, which was mostly backed by Luna, DEI is backed by 10% of DEUS tokens and 90% by other stablecoin. The team closely monitors the collateral ratio of DAI and adjusts it with bots. It is a cross-chain stablecoin that connects across all the chains of the DEUS ecosystem. DEI’s objective is to provide scalable and decentralized liquidity across all blockchains. Users will be able to transmit a stablecoin to any chain and claim it on the other side with no slippage with DEI.
About DEUS Finance
DEUS Finance is a marketplace for decentralized financial services, with the DEUS DAO providing the framework for others to develop financial products. Synthetic stock trading platforms, options, and futures trading are examples of such instruments. It is also behind the stablecoin DEI that has recently lost its peg. The price of the DEUS Finance token is currently at $216, and it has a market cap of nearly $19 million. Needless to say, it is also a pretty small coin, and the trading volume is also significantly less.
What are your thoughts as Deus Stablecoin (DEI) loses its peg? And do you think that the UST crash marked the end of algorithmic stablecoins? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin is mainly used for illicit activities, says Former Fed Chairman.
