Data compiled by Woofun AI shows that Main Street USD (MSUSD), an algorithmically stabilized stablecoin, has severely depegged to $0.36, representing a 64.1% decline over the past 24 hours. Mainstreet disclosed that the project's assets remain fully backed, asserting that the recent unavailability of the third-party reserve proof dashboard stems from infrastructure and reporting-level technicalities rather than a deterioration in portfolio quality or asset depletion.

Concurrently, the offline status of the reserve proof page is expected to trigger a pause in the oracle supporting the Morpho market within the next 24 hours. This disruption will likely accelerate the unwinding of leveraged loop lending positions, resulting in a significant surge in borrowing rates. Mainstreet emphasized that its current priority is protecting net asset value and maximizing protocol liquidity, with a commitment to safeguarding user funds and restoring normal market operations as swiftly as possible.