The msUSD of MetronomeDAO once deviated from its peg by 11% due to insufficient collateral issues in the synthetic asset module

According to monitoring by Blockaid, the trading price of MetronomeDAO's Synth USD (msUSD) on Ethereum, Base, and Optimism once dropped about 11% below its pegged value. Subsequently, MetronomeDAO released a post-mortem report stating that its synthetic asset swap module had insufficient collateral issues, resulting in a lack of adequate asset backing for approximately 6,367 msETH and 4.57 million msUSD, with the impact primarily concentrated on that module.

The report pointed out that the problem stemmed from delays in the Chainlink price oracle during the execution of swaps, and Metronome's fee design failed to adequately account for this variable, particularly on the Base chain where the situation was more severe. The team has deployed over $34 million in defensive positions and about $6.5 million in "last exit" liquidity, which can be used to repurchase and destroy sufficient assets to eliminate the gap if the peg deviates by about 30%. The team has increased fees for all synthetic trading pairs and upgraded the protocol to support a directionally isolated fee mechanism. Priority will be given to ensuring the treasury repurchases and destroys synthetic assets to restore 100% adequate collateral, while not affecting the rights of MET token holders, and the MET repurchase and distribution plan will proceed as usual.