Stablecoin Depeg

Definition ∞ A stablecoin depeg occurs when a stablecoin, designed to maintain a fixed value relative to a reference asset like the US dollar, loses its peg and trades at a price significantly different from its intended value. This deviation can be caused by factors such as insufficient reserves, market panic, or algorithmic instability within the stablecoin’s design. Such events can trigger substantial market disruption.
Context ∞ The discourse surrounding stablecoin depegs is presently dominated by concerns over the systemic risks these events pose to the broader digital asset ecosystem, particularly following high-profile failures. Discussions are focused on the adequacy of reserve backing, the transparency of attestations, and the resilience of different stablecoin architectures, including algorithmic and collateralized models. Regulatory scrutiny of stablecoin issuance and redemption mechanisms is also intensifying.

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→DeFi Vulnerability

→Smart Contract Exploit

→Stablecoin Depeg

Onyx Protocol NFT Liquidation Contract Exploited for Millions

A critical vulnerability in the NFT liquidation contract allowed asset draining, depegging stablecoins and jeopardizing user funds.

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→DeFi Exploit

→Web3 Threat

→Compound Fork

Onyx Protocol NFT Liquidation Contract Exploited, Draining $3.8 Million

A critical flaw in Onyx Protocol's NFT liquidation contract enabled vUSD stablecoin draining, highlighting risks in complex DeFi contract interactions.

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→Stablecoin Depeg

→Digital Asset

→Stablecoin

Onyx Protocol Suffers $3.8 Million Exploit via NFT Liquidation Contract

A critical flaw in Onyx Protocol's NFT liquidation contract enabled an attacker to drain $3.8 million, compromising stablecoin peg integrity.

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→Smart Contract

→Stablecoin Depeg

→Decentralized Finance

Yala YU Stablecoin Depegs from Unauthorized Minting Exploit

A critical cross-chain bridging vulnerability allowed an attacker to mint unbacked YU tokens, depegging the stablecoin and causing $7.7 million in losses.

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→Liquidation Vulnerability

→vUSD

→Blockchain Incident

Onyx Protocol Suffers $3.8 Million NFT Liquidation Contract Exploit

A critical flaw in the NFT liquidation contract allowed attackers to drain stablecoin reserves, compromising protocol integrity and asset peg.

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→Contract

→DeFi Exploit

→On-Chain

Onyx Protocol NFT Liquidation Contract Exploited, $3.8 Million Drained

A critical vulnerability within Onyx Protocol's NFT Liquidation contract allowed an attacker to drain $3.8 million in vUSD stablecoins.

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→Altcoin Losses

→Crypto Market Crash

→Stablecoin Depeg

Trade War Fears Trigger Crypto Market Crash and Billions in Liquidations

Renewed U.S.-China trade tensions sparked a crypto market plunge, wiping out over $400 billion and liquidating $19 billion in leveraged positions.

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→Institutional Flows

→Market Volatility

→Crypto Market Downturn

Tariff News Triggers Crypto Market Plunge, Billions Liquidated

A sudden tariff announcement by President Trump sparked a massive crypto market sell-off, leading to significant liquidations and a shift to extreme fear.

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→Approvals

→Geopolitical Uncertainty

→Bitcoin Price

Tariff News Triggers Record Crypto Market Liquidation

A sudden tariff announcement by former President Trump caused an unprecedented $19.5 billion in crypto liquidations, reshaping market leverage.

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→Protocol Insolvency

→Liquidity Crisis

→Onchain Transparency

Opaque Stablecoin Collapse Triggers Contagion across Multi-Chain Lending Protocols

The XUSD de-pegging exposes critical systemic risk in composable DeFi architectures reliant on opaque, external asset management for yield generation.