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🚨 pmUSD The Stablecoin that Lost Its Peg
It's an RWA Stablecoin backed by GOLD and METALS in vault
People were flocking to pmUSD mainly for the super high yield.
✅ 16% to 30% APY (even hit +100% on Curve) in liquidity pools.
✅ Attractive narrative: "Gold-backed Stablecoin" (RWA).
✅ Extra incentives: rewards, bribes, and farming in DeFi.
Too good to be true!!
But a report from Pharos Watch revealed that the backing consists of legal claims, rights to an unmined mine in Yukon (Canada). There was no GOLD or metals in the vault.
When redeeming, you don't get dollars or gold, but a claim that's hard to cash in (you get paid when they mine the GOLD).
Added to:
- Very low liquidity on Curve/Uniswap
- PSM (peg mechanism) too weak
- Massive exit from a big wallet just before the crash.
The stablecoin suffered a brutal depeg:
plummeting from $0.95 to $0.11-$0.20 (loss of more than 80-90% in hours).
People sold in panic with huge losses, but some risk-takers bought the dip.
- Current situation:
It's partially recovered and trades at $0.87 - $0.88, 12% below the peg).
📝Moral:
Another example of high yields, opaque projects with a shady RWA where the "gold-backed" narrative wasn't as real as it seemed.
#Stablecoin #pmUSD #Depeg
It's an RWA Stablecoin backed by GOLD and METALS in vault
People were flocking to pmUSD mainly for the super high yield.
✅ 16% to 30% APY (even hit +100% on Curve) in liquidity pools.
✅ Attractive narrative: "Gold-backed Stablecoin" (RWA).
✅ Extra incentives: rewards, bribes, and farming in DeFi.
Too good to be true!!
But a report from Pharos Watch revealed that the backing consists of legal claims, rights to an unmined mine in Yukon (Canada). There was no GOLD or metals in the vault.
When redeeming, you don't get dollars or gold, but a claim that's hard to cash in (you get paid when they mine the GOLD).
Added to:
- Very low liquidity on Curve/Uniswap
- PSM (peg mechanism) too weak
- Massive exit from a big wallet just before the crash.
The stablecoin suffered a brutal depeg:
plummeting from $0.95 to $0.11-$0.20 (loss of more than 80-90% in hours).
People sold in panic with huge losses, but some risk-takers bought the dip.
- Current situation:
It's partially recovered and trades at $0.87 - $0.88, 12% below the peg).
📝Moral:
Another example of high yields, opaque projects with a shady RWA where the "gold-backed" narrative wasn't as real as it seemed.
#Stablecoin #pmUSD #Depeg
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