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The DEI stablecoin, like many other digital coins, suffered greatly after the TerraUSD (UST) fiasco. However, the recovery plan proposed by the project team helped him recover.
As with other stablecoins, the TerraUSD (UST) fiasco affected the dollar peg. One such project that has been hit hard has been the DEI stablecoin, which now appears to be in the race to return to dollar parity following the launch of the new plan.
See also: What happened to the TerraUSD (UST) stablecoin and how the incident will affect the crypto market
The DEI stablecoin, developed by the DEUS Finance project, began to lose sharply in price on May 15 amid the collapse of TerraUSD (UST). He lost almost 50% For token holders, this fall turned into huge losses.
The disaster, provoked by the algorithmic stablecoin UST, shook investor confidence in DEUS. However, the project did everything possible to regain the lost reputation, and it seems that it succeeded. At the time of publication, the token has partially won back the losses and is confidently moving towards parity with the dollar.
DEUS Action Plan to Save the DEI
While the token was sinking, the DEUS team almost did not comment on the situation, publishing only a timid comment on Twitter, in which it mentioned that it was “working tirelessly” to restore the status of the stablecoin. Later, the developers published two options for overcoming the crisis:
- Change how the binding works.
- issue vouchers to provide DEI with liquid reserves.
Ultimately, the DEUS protocol borrowed $10.5 million from Scream in DAI and USDC stablecoins to bring back the DEI peg to the dollar. Because of the crisis, the protocol had only two options:
- Buy out borrowed stablecoins at the expense of reserves.
- Provide scream’s position with an additional DEI.
After a long silence, the project published an action plan to save the DEI. The team plans to pay compensation to stablecoin holders in several tranches. The first tranche will be paid when the DEI rate exceeds $0.6. At the time of this writing, it has already happened.
Here’s what DEUS offers:
- $0.3 paid out in USDC and $0.3 in vDEUS vouchers.
- The first stage will last 24 hours.
- The maximum reserves allocated for this tranche will be $2 million in USDC and $2 million in vDEUS vouchers.
- USDC’s share of the refund will decrease with each tranche.
- Unused funds under the tranche will be transferred to the next stage with new coefficients.
- A vDEUS voucher is an NFT that can be exchanged for DEUS tokens in the future.
DEUS has provided an official page where the investor can see the refund to which he is entitled. At the moment, the dei price reacts with a sharp increase. The DEUS team claims that if necessary, additional stablecoins (USDC) will be used from reserves.
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