MainStreet-Related MSUSD Drops 85%, Morpho Market Hits 100% Utilization Amid Liquidity Concerns

According to PeckShield, MainStreet Finance-related token MSUSD fell as much as 85%, while the Morpho msY/USDC market reached 100% utilization. AlphaUSDC Delta V2, curated by AlphaPING, has approximately 30% exposure, or about $18 million, to the market.

The sell-off follows Accountable’s termination of its verification agreement with MainStreet Finance. In response, MainStreet said its assets remain fully backed and that the issue stems from the shutdown of a third-party proof-of-reserves dashboard rather than insolvency. The protocol said it has already deployed over $8 million USDC to support liquidity and is seeking alternative proof-of-reserves providers.