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Another Stablecoin Loses Peg as Algorithm Fails to Keep Pace (1)

May 16, 2022, 6:55 PM

Deus Finance’s DEI token has lost its 1-to-1 peg to the dollar, becoming the latest failure of an algorithmic stablecoin during a period of crypto market stress.

DEI is currently trading at 70 cents, according to data tracker CoinGecko. With a market value of about $63.5 million, the token is tiny compared with the more than $18 billion TerraUSD stablecoin that shook crypto markets when it become depegged last week.

Unlike after the TerraUSD break, the drop below the peg by DEI hasn’t exacerbated concern about a broader crypto market contagion. Bitcoin fell less than 4% on Monday, while popular ...