MSUSD depegs to $0.36, dropping 64.1% in 24 hours

According to Mainstreet monitoring, the algorithmically stabilized U.S. dollar-pegged stablecoin Main Street USD (MSUSD) has depegged and is currently trading at $0.36, down 64.1% in the past 24 hours. Mainstreet responded that assets remain fully backed, and the recent closure of the third-party reserve proof dashboard does not represent a decrease in assets or deterioration of portfolio quality, but rather an infrastructure and reporting-level issue. Due to the reserve proof page being offline, the oracle supporting the Morpho market is expected to pause within the next 24 hours, which will accelerate the unwinding of leveraged loop lending positions and cause a significant increase in borrowing rates. Mainstreet stated that the primary goal at present is to protect NAV and maximize protocol liquidity, while continuing to prioritize safeguarding user funds, maintaining asset net value, and restoring normal market operations as soon as possible.