DEI, the algorithmic stablecoin of the Deus Finance DAO project, lost its parity with the US dollar on May 15.
The price of the crypto has fallen to $0.51, while at the moment, the asset is trading at around $0.69.
DEI’s fall has coincided with the publication of a proposal to launch a DEUS Treasury fixed-rate debt token program:
“The stablecoin market has been shaken by the drop in UST. We believe a strong $1 peg and full provisioning will be the answer to near-term stability.”
The aim of the initiative is to implement DEI support with a basket of assets at a 1:1 ratio. According to the project’s site, the algorithmic stablecoin is “partially backed.”
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Users have said:
“History still repeating itself. Now another stablecoin DEI has depegged. Just like UST. Can we please stop building models like this that simply do not work?”
The Ethereum co-founder Vitalik Buterin has previously said the term “algostablecoin” has become propaganda and serves to “legitimize stable fiat cryptocurrencies.”
Last May 10, algorithmic stablecoin UST lost its parity with the dollar coinciding with a correction in the crypto market.