https://finbold.com/warning-another-stablecoin-loses-peg-dei-team-working-to-restore-the-peg/ US [logo] [ico] FINANCE IN BOLD Share Finance Cryptocurrency Startups Technology news Cybersecurity Stocks news Regulations Financial crime Banking news Interviews Banking Investing Stocks Reviews Guides * News + Finance news + Cryptocurrency news + Startups news + Technology news + Cybersecurity news + Stocks news + Regulations news + Financial crime news + Banking news + Interviews * Banking * Investing * Reviews * Guides * Stocks * More + Podcasts + Percentage Calculator + Bank Fines 2020 Report + GDPR Fines 2020 Report + Bitcoin ROI News Finance Cryptocurrency Startups Technology Cybersecurity Stock quotes Stocks Regulations Financial crime Banking Interviews Learn & Tools Reviews Guides Percentage Calculator Reports Bank Fines 2020 Report GDPR Fines 2020 Report Join us on Twitter or Telegram [coin] 255 Cryptocurrency news Warning: Another stablecoin loses peg - DEI team working to restore the peg Warning Another stablecoin loses peg - DEI team working to restore the peg Dino Kurbegovic 13 hours ago 2 mins read [INS::INS] Deus Finance's stablecoin Dei (DEI) is the latest stabelcoin to lose its 1-to-1 peg to the U.S. dollar. The coin is currently trading at $0.64, as this drop follows several algorithmic stablecoins losing their peg last week, the most notable of which was the algorithmic stablecoin TerraUSD (UST). Deus Finance uses DEUS and DEI tokens for their DeFi protocol, where minting 1 DEI requires $1 of collateral. When redeeming, for instance, one DEI, users would get 80% of the value in USDC and 20% in DEUS if USDC was used as collateral for the creation of DEI in the first place. This is important because the collateral ratio fell to 43%; according to data from Deus Finance, low collateral meant difficult redemption of DEI tokens since there is not enough capital behind the stablecoin. Traders are taking advantage of this arbitrage mismatch, buying up DEI coins and exchanging them for $1 worth of collateral, making matters worse. Deus Finance reacted by halting the redemption process in order to try and stabilize the coin. DEI to USD Chart source: CoinMarketCap How the DEI loss came to be Related Analyst hints crypto carnage ahead citing LUNA crash as 'long-term positive' thing Can Terra (LUNA) be saved? Here's the founder's resurrection plan Hoskinson mocks Buterin saying 'it's not too late to come to Cardano' [INS::INS] Unlike more centralized coins like Tether (USDT) or USD coin (USDC), which are backed by dollar assets, algorithmic stablecoins were supposed to be automatically pegged to the price of another currency. Arbitrage bots, which simultaneously buy and sell the same asset to profit from small differences, were ensuring the peg by trading $1 worth of an underlying token for 1 DEI and vice versa. Crypto markets are experiencing nervousness, as even the bank of England noted in their March 2022 report: "Public confidence in money and payments could be undermined if a systemic stablecoin used for payments fails to meet its obligations." [INS::INS] For the time being, Bitcoin is holding around $30,000 despite all the recent volatility. If stabelcoin rout continues, there could be much more selling pressure coming into crypto markets, and the bottom would be then difficult to predict. Investors should keep an eye on USDT as the largest stablecoin and how its prices move in relation to other major coins to determine the direction of the markets. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. Latest News Cryptocurrency news Analyst hints crypto carnage ahead citing LUNA crash as 'long-term positive' thing 7 hours ago * 3 mins read Cryptocurrency news Can Terra (LUNA) be saved? Here's the founder's resurrection plan 7 hours ago * 2 mins read Stocks news PayPal is down 60% YTD - is now the time to buy the stock? 9 hours ago * 3 mins read Stocks news Putting $10,000 to work - look no further than this REIT 9 hours ago * 3 mins read [INS::INS] Cryptocurrency news Hoskinson mocks Buterin saying 'it's not too late to come to Cardano' 9 hours ago * 3 mins read Cryptocurrency news Crypto 'Fear & Greed' index hits the lowest level since March 2020; What's next for BTC? 9 hours ago * 2 mins read Finance news Former Fed Chair slams Bitcoin will not 'take over as alternate form of money' 11 hours ago * 3 mins read Join us on Twitter or Telegram Or follow us on Flipboard Flipboard Like the article? Vote up or share on your social media [coin] 255 Recommended content [INS::INS] Weekly Finance Digest Please leave this field empty[ ] [ ] [Subscribe!] Check your inbox or spam folder to confirm your subscription. By subscribing you agree with Finbold T&C's Author Dino Kurbegovic Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he's also building a micro solar power plants in his hometown. [INS::INS] [icon-white] [logo-white] Copyright (c) 2019-2022 Finbold.com Follow us on social media Weekly Finance Digest Please leave this field empty[ ] [ ] [Subscribe!] Check your inbox or spam folder to confirm your subscription. By subscribing you agree with Finbold T&C's News Finance news Cryptocurrency news Startups news Technology news Cybersecurity news Stocks news Regulations news Learn Finance Guides Service Reviews Finance Podcasts Banking Guides Investing Guides Pages About Us Submit News Tip Contact Terms & Conditions Privacy Policy Disclaimer Editorial policies DISCLAIMER WARNING: The content on this site should not be considered investment advice. Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. US [ ] Recommended content Share on social media Or copy link [https://finbold.com/] Copy permalink AD