After falling 60% on Monday, the Iron Bank Euro (ibEUR) stablecoin reportedly has no plans to restore the peg. The little-known stablecoin, which has a market capitalization of $11 million, fell from its normal price of $0.97 to $0.39 on Monday after a shock to ibEUR’s main trading pool left the asset’s markets unbalanced.
At the time of writing, ibEUR had recovered to $0.72 as risk-averse traders moved in hoping for the peg to be restored. But there is no guarantee that ibEUR will quickly return to its previous price level. The loss of peg occurred after one trader withdrew almost $900,000 of USDC liquidity from the Curve pool, which supports most ibEUR trading.
According to an anonymous Keep3r Network Telegram chat administrator associated with the project, the ibEUR-backing protocol is currently taking no action on the peg and lacks the treasury liquidity needed to stabilize the asset. He also added that it would be helpful if the Iron Bank team terminated its 2.5 million ibEUR leveraged borrowing contract.
Image: Forbes
