Main Street USD (msUSD) lost its peg to the dollar on Saturday after verification provider Accountable terminated its agreement with the protocol, wiping out most of the token’s value within hours.
The token has been trading near $1 for several months. It is now trading near $0.29, down roughly 71% over 24 hours, and its market cap is approaching $30.5 million.
Impeachment ends the deal that supported msUSD
Accountable software performs real-time proof of reserves checks that allow companies to verify assets without exposing sensitive data.
responsible It says its network has verified client assets worth more than $1 billion, including those of Galaxy and Amber Group. It is backed by Pantera Capital.
Main Street promoted itself as “verified for accountability” and ran a public dashboard, powered by the company, tracking msUSD collateral.
On Saturday, Acconble said Main Street was unable to meet its standards and immediately severed the relationship.
“Accountable has terminated its service agreement with MainStreet, effective immediately. MainStreet has been unable to meet our verification standards… and we will continue to hold that standard without exception,” books In a job.
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With the feed turned off, the Accountable dashboard no longer checks for any reserves behind msUSD.
Third party revenue model
Main Street marketed msUSD as a dollar token that can always be exchanged one-to-one for USDC. It was minted mSY, a strategic token profit yield from options fund spreads, a hedge fund tactic presented as institutional grade.
This design was based on the verification brief and on integrations with larger venues. Main Street promoted the mSY market in Morpho lending marketsone of the largest decentralized lenders, has billions in deposits.
The token also runs an upgradeable agent contract. The GoPlus security scanner warns that its owner can disrupt sales, mint new tokens, or change fees.
Analysts had doubts Stablecoin risk with returns Behind these products before the collapse. The case adds to Another stablecoin correction This year, the currency lost its peg when its support came into question.
This case shows how quickly trust is depleted when an outside investigator walks away. A protocol based on a single feed inherits that partner’s decisions.
Main Street did not issue a public statement. Along with it, mSY, the primary yield token issued by Main Street Finance, also fell.
msY represents the return of Main Street Finance Protocol neutral options strategies. The crash led to severe liquidity shortages (100% utilization, 138% borrowing rates) in Morpho’s msY/USDC market, where the AlphaUSDC vault holds approximately $18 million.
The cancellation wiped out more than half of the token’s market value in a single day. MSUSD price action Any recovery now depends on whether the protocol is able to prove its support.
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