Phantom-based landing service Scream suffered from losses of FUSD and DEI pegs against the US dollar. Its users used algorithmic stablecoins as collateral for loans in USDT, FRAX, DAI, MIM, and USDC.

We are currently working on a solution to the fUSD bad debt problem. The Phantom Foundation has agreed to run a liquidation bot that will liquidate any underwater position using fUSD as collateral.

— 😱 (@Screamdotsh) 16 May 2022

According to DeFi Llama, TVL daily service fell 46.6% to $75.88 million.

In the future, the project will be based on Chainlink oracles, as promised to its representatives.

Lenders who deposit USDT, FRAX, DAI, MIM and USDC are currently having difficulties with their returns. The situation was aggravated by the lack of a limit on FUSD deposits.

According to the project board, FUSD is $0.99 and DEI is $1. According to CoinGecko, at the time of writing, the market price of the first stablecoin is $0.83 ($0.79 low), while the second is $0.66 ($0.51).

In coordination with the Phantom Foundation, the project is developing a solution that includes the liquidation of all FUSD unsecured loans. The team plans to fix the value of the asset at $0.81.

The Phantom Foundation will oversee the liquidation mechanism in the next three to four weeks, which should return the FUSD peg to $1.

The Scream team said the DEI credit situation has been resolved.

On May 15, stablecoin-linked DAO Deus Finance offered to sell community treasury bills for USDC, DAI, and FRAX to re-penetrate the stablecoin to $1.

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.