Fantom Stablecoin DEI Remains Below Dollar Peg For Third Day, No Updates from the Team

Source: AdobeStock / Voyagerix

DEI, a hybrid algorithmic stablecoin of decentralized finance (DeFi) protocol DEUS Finance, has failed to restore its intended peg, currently trading under one dollar for the third day.

The stablecoin first lost its dollar peg on Sunday after a wave of uncertainty incited by the crash of Terra‘s decentralized stablecoin UST led to traders exchanging their DEI tokens for USD coin (USDC) amid a small amount of liquidity on decentralized exchanges.

DEI plunged to as low as USD 0.525239 on Monday, but has since managed to slightly trim losses. At 8:15 UTC on Wednesday morning, the coin is trading at USD 0.606, down by around 40% compared to its intended peg of USD 1.

DEI 7-day price chart. Source: coingecko.com

While DEI resembles Terra’s UST in many ways, the stablecoin is fundamentally different as it is collateralized.

Deus Finance backs the stablecoin with a basket of tokens, including its native governance token DEUS and other stablecoins. DEUS tokens comprise 10% of the reserve, while other stablecoins account for the remaining 90%.