Main Street: Coverage valuation is nearly 100%, plans to launch open market buybacks in about 30 days
Foresight News reports that Main Street has updated on its liquidity and recovery progress. After assessing ways to provide liquidity for holders (including limited early position closure combined with open market token buyback and burn), the team stated that its protocol coverage (excluding the insurance fund) has now reached almost 100% based on current valuations.
After consulting legal advisors, the team believes it is currently inadvisable to carry out transactions that would temporarily lower coverage, and therefore cannot execute early position closure or large-scale buybacks. According to the maturity schedule, the first significant liquidity for the remaining "box" positions is expected to arrive in just over 30 days. At that point, subject to an updated coverage calculation and favorable market conditions, the team plans to place limit orders on the open market to purchase tokens for permanent destruction. Meanwhile, the official team is designing the Morpho redemption mechanism to restrict msY transfers within the affected Morpho contracts and introduce a dedicated redemption process. This aims to avoid a first-come, first-served scenario and the unfairly high cumulative interest caused by long-term full utilization. The design is still subject to final legal, technical, and security review, as well as independent auditing.
According to a previous report by Foresight News, the US dollar-pegged algorithmic stablecoin Main Street USD (MSUSD) experienced a de-pegging event in June, with its price plummeting over 80% to a low of $0.064.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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