{"id":75381,"date":"2023-03-11T14:19:41","date_gmt":"2023-03-11T12:19:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75381"},"modified":"2025-09-10T11:17:13","modified_gmt":"2025-09-10T08:17:13","slug":"algorithmic-dai-and-frax-lose-peg-to-the-us-dollar-following-usdc","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/algorithmic-dai-and-frax-lose-peg-to-the-us-dollar-following-usdc\/","title":{"rendered":"Algorithmic DAI and FRAX Lose Peg to the US Dollar Following USDC"},"content":{"rendered":"

Algorithmic \u201cstablecoins\u201d DAI<\/a> and FRAX have lost their peg to the US dollar amid similar troubles facing the stablecoin USDC after the collapse of Silicon Valley Bank (SVB).<\/p>\n

\"111-42\"
Hourly chart of the DAI\/USD on Coinbase. Data: TradingView<\/a>.<\/figcaption><\/figure>\n

DAI and FRAX rank fourth and sixth in CoinGecko’s stablecoins by market capitalization at $5.1 billion and $946 million respectively.<\/p>\n

As of this writing, the DAI trades at $0.92, FRAX at $0.96.<\/p>\n

\"222-35\"
Hourly chart FRAX\/USDT on Gate.io. Data: TradingView<\/a>.<\/figcaption><\/figure>\n

The share of USDC in collateral backing the issued DAI exceeds 54%, according to DaiStats<\/a>.<\/p>\n

\"333-21\"
Data: DaiStats.<\/figcaption><\/figure>\n

Previously, USDC lost its peg to the US dollar<\/a> after Circle announced it was holding $3.3 billion in reserves at SVB. It was closed by the California Department of Financial Protection and Innovation due to \u201clack of liquidity and insolvency.\u201d<\/p>\n

In February, the Frax Finance community decided<\/a> to gradually transition FRAX from algorithmic backing to full reserve backing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Algorithmic stablecoins DAI and FRAX have lost their peg to the US dollar amid similar troubles facing the stablecoin USDC after the collapse of Silicon Valley Bank (SVB).<\/p>\n","protected":false},"author":1,"featured_media":75382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1099,1100,807],"class_list":["post-75381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dai","tag-makerdao","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"44","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=75381"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75381\/revisions"}],"predecessor-version":[{"id":75383,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75381\/revisions\/75383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/75382"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=75381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=75381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=75381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}