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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→On-Chain Risk

→Lending Protocol Risk

→Deposit Freezing

Stream Finance Collateral Mismanagement Causes $93 Million Asset Loss and Depeg

Centralized fund management and rehypothecation practices introduced catastrophic operational risk, resulting in a 77% stablecoin depeg.

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→Yield Farming

→Contagion Risk

→Centralized Risk

Stream Finance Fund Manager Error Causes $93 Million Asset Loss

Centralized fund manager negligence triggered a $93 million asset loss, immediately depegging the xUSD stablecoin and exposing $285M in systemic debt.

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→Smart Contract Logic

→Asset Drain

→Stablecoin Depeg

Stream Finance Drained $93 Million via Systemic Smart Contract Contagion

Systemic risk materialized: interconnected contract dependencies created a fatal liquidity shock, resulting in a $93M insolvency.

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→Cross-Chain Bridge

→Collateral Manipulation

→Solvency Risk

Yala Stablecoin Depegs after Issuer-Linked Wallet Drains Lending Liquidity

Protocol's faulty cross-chain bridge and issuer-linked debt accumulation triggered a systemic depeg, locking user liquidity on lending platforms.

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→Fund Manager Failure

→Governance Failure

→Systemic Risk

Opaque Fund Manager Operational Failure Drains Stream Finance $93 Million

Opaque external fund management and collateral failure introduced systemic contagion risk across interconnected DeFi lending markets.

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→Price Volatility

→Systemic Risk

→Emergency Shutdown

Stream Finance Stablecoin Depegs Following External Asset Manager Loss of Ninety-Three Million

Inter-protocol contagion risk materialized when an external fund manager's loss triggered a 77% stablecoin depeg, proving dependency risks are critical.

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→Liquidity Crisis

→Market Manipulation

→On-Chain Analytics

Elixir Protocol Stablecoin Plunges Ninety-Eight Percent Due to Solvency Failure

Protocol solvency models failed to absorb market shock, resulting in a near-total collapse of the deUSD stablecoin peg.

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→Financial Loss

→Synthetic Asset Exposure

→Yield Strategy

Stream Finance Loses Ninety-Three Million from External Fund Manager Failure

The failure of centralized external fund management has triggered a $93M liquidity crisis and a critical stablecoin depeg, exposing systemic DeFi contagion risk.