Main Street msUSD Depegs 90% After Verifier Cuts the Lights 💡

Main Street USD (msUSD) lost its dollar peg on Saturday after Accountable, the proof-of-reserves provider that backed the token, terminated its service agreement with the protocol. The token had traded close to $1 for months; it now changes hands near $0.29, down roughly 71% over 24 hours, with market value near $30.5 million, according to Coingecko data. Security firm PeckShieldAlert separately flagged the msUSD contract at 0x4ba01f22827018b4772cd326c7627fb4956a7c00 as down about 85%.

Accountable said the cut was effective immediately and cited the protocol's failure to meet its standards. "Accountable has terminated its service agreement with MainStreet, effective immediately. MainStreet was unable to meet our verification standards… We will continue to hold this standard without exception," the firm wrote in a post on X. Accountable runs real-time proof-of-reserves checks for clients and says it has verified over $1 billion in client assets, with Galaxy and Amber Group among its users; the company is backed by Pantera Capital. With the feed switched off, the public Accountable-powered dashboard no longer verifies any reserves behind msUSD. Main Street has not issued a public statement.

Main Street marketed msUSD as a dollar token redeemable one-to-one for USDC and staked it into msY, a strategy token earning yield from options box spreads, a hedge-fund tactic pitched as institutional-grade. The design leaned on Accountable's verification feed and on integrations with larger venues, including an msY market on Morpho lending markets. The token runs on an upgradeable proxy contract, and security scanner GoPlus warns that its owner can disable sells, mint new tokens, or change fees.

Yield token msY, issued by Main Street Finance, has also plunged. PeckShieldAlert reported the msY contract at 0x890a5122aa1da30fec4286de7904ff808f0bd74a down about 70%, and noted that the Morpho msY/USDC market is 100% utilized, with AlphaUSDC Delta V2, curated by AlphaPING, holding roughly 30% exposure, about $18 million, to the msY/USDC market.