USDX, issued by the company Stable Labs, is now trading at $0.13.
DeUSD, from the Elixir firm, has a price of USD 0.052.
Two stablecoins designed to maintain peg to the US dollar collapsed this week.
USDX, issued by Stable Labs, is currently trading at $0.13 after falling more than 86% in seven days. While deUSD, from the Elixir protocol, lost 94% of its value and is trading at USD 0.052. This is seen in the following image:
Both projects belong to the category of synthetic stablecoins, that is, digital assets that seek to replicate the value of the dollar through leveraged positions or hedging strategies with other tokens instead of directly backed by cash or Treasury bonds. Its stability It depends on algorithmic models and the management of digital collateral.
In the case of USDX, IncentiveFi analysts they explained that the collapse occurred after a exploit of a million dollars in one of their pools on Balancer. The outage affected funds in USDX and sUSDX, leading Stable Labs to freeze bridges, restrict transfers between networks, and withdraw liquidity in Arbitrum and Base. Lack of subsequent communication It undermined user confidence, generating a wave of sales.
For its part, deUSD lost its parity after Elixir allocated 65% of its collateral to StreamDeFi, a platform that lost USD 93 million by using its own currency, xUSD, as collateral. When xUSD fell 77%, deUSD’s support evaporated, causing a sell-off on Curve and suspension of withdrawals, according to reported Nansen.
The events occur a few days after the hacks of DeFi platforms in Ethereum, incidents reported by CriptoNoticias. This once again calls into question the sustainability of stablecoin models not backed by traditional reserves.