Coinspeaker
Blast-based USDB Stablecoin Loses Dollar-Peg by 6% amid Crypto Market Selloff
Amid the major chaos in the global equity market, the crypto market selloff intensified earlier today in the Asian trading hours with Bitcoin and altcoins collapsing by more than 15%. This massive surge in market volatility pushed decentralized stablecoin USDB into strong selling pressure with the stablecoin losing its Dollar peg by as much as 6%.
USDB Stablecoin
Developed by Blast, the USDB stablecoin provides a 5% yield sourced by MakerDao’s on-chain T-bill. While bridging from Blast to Ethereum, the stablecoin allows users to redeem USDB for DAI.
However, the massive liquidations in the crypto market and the market instability caused the USDB value to drop to $0.94. However, it bounced back later to regain its peg to $1. So far, Blast hasn’t issued any statement regarding this matter.
In June 2024, cybersecurity analysts at web3 firm Resonance Security raised major concerns over Blast’s dependence on external protocol for generating yields that bring inherent risks. The analysts noted that MakerDAO “has not published a security audit of their smart contracts in three years”.
Crypto Market Liquidations Rise
Amid massive selloff in Asian markets like Japan and South Korea, the crypto market liquidations have shot up significantly crossing more than $1 billion in the last 24 hours. A large part of the leveraged long position was liquidated on Monday amid the global market sell-off.
Cryptocurrency markets have been largely impacted by these macro developments. Altcoins are facing an even deeper correction with Ethereum plummeting more than 20% and other alts correcting in a similar magnitude.
With altcoins like Ethereum and Solana collapsing, the liquidations in the decentralized finance (DeFi) market have touched a new yearly high, shooting past more than $350 million in the past 24 hours.
As said, the majority of the liquidations have happened across three major assets, which also affects protocols such as Aave. Besides, the ETH collateral faced major heat leading to liquidations of more than $216 million over the past day. Wrapped staked ETH (wstETH) experienced liquidations amounting to $97 million, while wrapped bitcoin (wBTC) also faced substantial liquidations, totaling $35 million.
Market analysts believe that these liquidations can further exacerbate once the US market opens on Monday. Apart from USDB, other stablecoins like USDT and USDC have managed the liquidity requirements well without deviating from the Dollar peg.
Blast-based USDB Stablecoin Loses Dollar-Peg by 6% amid Crypto Market Selloff
