On the evening of May 15, DEI, the algorithmic stablecoin of the Deus Finance DAO project, lost its peg to the US dollar.

The price of “Stablecoin” reached $0.51. At the time of this writing, the asset is trading around $0.68 with a market cap of $62 million (CoinGecko).

In the last 24 hours, the price of the DEUS token used to mint the stablecoin has dropped by about 34% to $190.

The DEI price drop below $1 coincided with the release of an offer from the DEUS Treasury to launch a flat rate debt token program:

“The stablecoin market has been shaken by the fall of UST. We believe a strong $1 fixed and full supply is the answer to addressing short-term stability.”

The aim of the initiative is the implementation of DEI support by a 1:1 basket of assets. According to the site, the algorithmic stablecoin is “partially supported.”

“History keeps repeating itself. Now, another stablecoin like UST has lost its stable value. Maybe we’ll finally stop creating models that don’t work like this?” one user wrote.

Hence, he responded to a tweet where an investor under the pseudonym BigBenStats expressed hope for an early recovery in the DEI price and talked about the coin’s 80% reserve support.

Earlier, in the midst of the UST incident, Ethereum co-founder Vitalik Buterin said that the term “algostablecoin” has become propaganda and serves to “legitimate fiat stablecoins.”

He urged not to compare such assets with fully-backed “stable coins” like DAI.

Recall that in March an attacker attacked Deus Finance DAO using instant loans. Its production was about 3 million dollars, the protocol supposedly lost more.

In April, the project was re-attacked along a similar vector. The hacker withdrew approximately $13.4 million worth of assets from smart contracts.