The niche stablecoin sector isn’t exactly smooth sailing. A month ago, the delta-neutral stablecoin msUSD issued by MainStreet severely depegged by 80%. A month later, the same-named stablecoin msUSD issued by @MetronomeDAO also depegged by 25%. The trigger for the former’s depegging was the sudden termination of collaboration between MainStreet and its third-party reserve verification provider, Accountable. However, MainStreet has consistently claimed that the asset reserves backing msUSD are fully backed. Now, a month has passed, and msUSD is still significantly depegged by 65%. If the reserves were truly strictly 1:1, MainStreet could easily partner with another PoR service provider or use its own funds to market-make and restore the price peg. But they haven’t taken any substantial action. This is most likely yet another negative case of a stablecoin permanently losing its peg.