Woofun AI reports that Mainstreet has asserted full asset backing for its algorithmic stablecoin, MSUSD, following a severe disconnection from its US dollar peg. The firm clarified that the recent shutdown of its third-party reserve certification dashboard stemmed from infrastructure and reporting glitches rather than any erosion in asset reserves or portfolio quality.

However, the unavailability of the certification page has triggered a cascade of technical failures, with oracle systems supporting the Morpho market expected to halt operations within the next 24 hours. This disruption has ignited market anxiety, prompting users engaged in leveraged lending to accelerate liquidations and driving borrowing rates to significant highs. Mainstreet stated that its immediate priority is to 'protect the NAV and maximize the liquidity of the protocol,' while reaffirming its commitment to safeguarding user funds and restoring normal market operations.