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Fantom Foundation bailing out Scream, Deus...it's actually happening?

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eatthebugs
@eatthebugs
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This past week has been just straight nuts in Fantom and across all crypto honestly..

We've been dealing with a major depegging issue with our fUSD and DEI algo stables. Timed with the depegging of UST and collapse of Luna, hacking spree across crypto sites exploiting ads to force metamask signature requests and $7.5bn being redeemed from USDT back to banks

If you haven't been following the action closely, the Block Crypto does a decent job detailing the situation in their article published two days ago.

Source: DeFi lender left with $35 million bad debt after quoting depegged stablecoins at $1 Img Source: Noticias De Criptomonedas

Basically, Scream, a major lending house on Fantom, had hardcoded fUSD and DEI to $1. $fUSD and $DEI are notriously unstable stables we have on the network so, obviously, this situation created a unique, very juicy arbitrage opportunity that quick and well-funded anons exploited so much that it overborrowed all of Scream and bogged down the entire Fantom network, draining tens of millions away in the process.

Allegedly (though all the txns are there for you to look through yourself), Anons would come to Scream over the weekend, deposit their cheaply-purchased $DEI (.53 cents over the weekend) and get $1 out of clean, pure $DAI or $USDC.

So, how does this crazy situation, which liquidated an entire protocol, get rectified? Is it even possible? Should it even be done? $fUSD, unlike $UST which has been in the spotlight recently as well for its epic depeg, is an overcollateralized stable backed by staked FTM. This issue is potentially completely different as a result.

Scream and FantomFDN have been working together since all this went down over the weekend to remediate the issue by forcing liquidations in fUSD and in DEI to removed bad debt. Take a lot at these pinned announcements from the Scream Discord.




I am awaiting the post-mortem from Deus and from Scream about what actually happened and what will be the plan going forward. I think it's been a fascinating and very emotionally turbulent 72 hours on Fantom. Some twitter threads involving the legendary Roosh are particularly salient right now....What will the next twist in the story of crypto be?






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