Markets Jittery As Deus Stablecoin (DEI) Loses Dollar Peg

-The crypto market was jolted when Deus Finance’s DEI stablecoin became the latest stablecoin to lose its 1-1 peg to the US Dollar.

-DEI’s de-pegging began on the 15th, when the algorithmic stablecoin fell to $0.84, according to data from CoinMarketCap.

-The team at Deus Finance tweeted that they were working to restore the DEI’s peg, implementing mitigation measures.

-The likely cause behind the de-pegging event could be that traders, spooked by the UST crash, likely exchanged DEI tokens for USDC.

-Deus developers had also paused the redemption mechanism for DEI, leading to a further decline.

-Other stablecoins such as Tether, USDC, and others also struggled as they lost their pegs thanks to the mayhem in the market.