16 May 2022 15:30, UTC
Reading time: ~2 m
The Fantom-based Scream landing service suffered due to the loss of fusd and DEI peg to the US dollar. Its users used algorithmic stablecoins as collateral for loans in USDT, FRAX, DAI, MIM and USDC.
We are currently working on a solution to the fUSD bad debt issue. The Fantom Foundation has agreed to run a liquidation bot that will liquidate any underwater positions that use fUSD as collateral.
— 😱 (@Screamdotsh) May 16, 2022
According to DeFi Llama, TVL service for the day fell by 46.6% to $ 75.88 million.
In the future, the project will rely on the oracles of Chainlink, its representatives promised.
Lenders who have contributed USDT, FRAX, DAI, MIM and USDC are currently experiencing difficulties with their repayment. The situation was aggravated by the lack of a limit on the deposit of FUSD.
According to the dashboard of the project, FUSD is estimated at $ 0.99, DEI – at $ 1. At the time of writing, the market price of the first stablecoin is $ 0.83 (at a minimum it was $ 0.79), the second – $ 0.66 ($ 0.51), according to CoinGecko.
In coordination with the Fantom Foundation, the project is developing a solution that involves the liquidation of all under-collateralized loans in FUSD. The team intends to fix the value of the asset at $0.81.
The Fantom Foundation will conduct an audit of the liquidation mechanism in the next three to four weeks, which should return the FUSD peg to $1.
The situation with loans in the DEI has been resolved, the Scream team said.
On May 15, Dao’s stablecoin-linked Deus Finance offered to sell community Treasury bonds for USDC, DAI and FRAX to return the stablecoin’s peg to $1.
Algorithmic stablecoins: how alternatives to USDT and USDC are developing
Recall that in March, the attacker attacked the Deus Finance DAO with the help of instant loans. Its production amounted to about $ 3 million, the protocol, presumably, lost more.
In April, the project was again attacked on a similar vector. The hacker withdrew assets worth approximately $ 13.4 million from smart contracts.
#Screams #DeFi #project #faced #losses #due #loss #FUSD #DEI #peg #dollar