Fantom-based DeFi lending protocol Scream caused $35 million in bad debts after failing to adjust the prices of two de-pegged USD stablecoins. The two stablecoins are Fantom USD (FUSD) and Dei (DEI).
Both stablecoins are still quoted at $1, according to data from the Scream dashboard. However, their trading prices have been severely de-pegged. Among them, FUSD fell to $0.69, and DEI fell to a low of $0.52. Whale players took advantage of this situation to deposit large amounts of FUSD and DEI at a discount and siphoned all other stablecoins from the Scream platform.
Stablecoins such as Fantom USDT, FRAX, DAI, MIM, and USDC have all been withdrawn from the platform. As a result, users who originally had deposits in these stablecoins would not be able to withdraw from Scream.