Mainstreet Addresses MSUSD Depeg, Says Reserves Remain Fully Backed

ME News reported that on June 21 (UTC+8), Main Street USD (MSUSD), a dollar-pegged algorithmic stablecoin, briefly lost its peg and saw a sharp drop in price. Mainstreet said on Twitter that MSUSD remains fully backed. The team attributed the recent shutdown of a third-party reserve proof dashboard to infrastructure and reporting issues, saying it does not reflect any reduction in assets or deterioration in portfolio quality. With the reserve proof page offline, oracles supporting the Morpho market are expected to pause within the next 24 hours. The development has heightened market anxiety, with leveraged loop borrowers accelerating liquidations and pushing borrowing rates sharply higher. Mainstreet said its immediate focus is "protecting NAV and maximizing protocol liquidity," while continuing to prioritize user fund safety, maintain net asset value, and restore normal market operations as quickly as possible. (Source: Foresight News)