MSUSD broke away from its peg and fell to $0.36, a 64.1% drop in the last 24 hours.

According to Odaily Planet Daily, Mainstreet's monitoring shows that the USD-pegged algorithmic stablecoin Main Street USD (MSUSD) has de-pegged, currently trading at $0.36, a 64.1% drop in the last 24 hours. Mainstreet responded that assets remain fully backed, and the recent closure of the third-party proof-of-reserve dashboard does not indicate a reduction in assets or a deterioration in portfolio quality, but rather an infrastructure and reporting issue. Due to the offline proof-of-reserve page, oracles supporting the Morpho market are expected to suspend operations within the next 24 hours, leading to accelerated liquidation of leveraged revolving lending users and a significant increase in borrowing rates. Mainstreet stated that its primary goal is currently to protect NAV and maximize protocol liquidity, while continuing to prioritize protecting user funds, maintaining net asset value, and restoring normal market operations as soon as possible.