Illustration by Alex Castro / The Verge
In the wake of the sudden collapse of TerraUSD, several other stablecoins’ values (whose values are supposedly pegged to the dollar) have started facing issues.
Deus Finance’s DEI coin is currently trading at around 66 cents and has been fluctuating since Sunday, reaching a low of around 52 cents early Monday morning.
Unlike other major stablecoins like USD Coin and Tether, which (allegedly) have actual dollars or assets backing them, DEI’s values are controlled by algorithms making trades. It’s not that there’s no collateral — as CoinTelegraph points out, there’s a DEUS token that you can use to get new DEI tokens and that you can receive if you redeemed DEI. Unlike with Terra, where the value of the corresponding coin crashed, the…
