BNB Chain-based Destablecoin HAY has lost its $1 peg as a result of the exploit of Ankr Protocol. The team stated that they would provide an update soon.
Market data shows that HAY, a ‘destablecoin’ on the BNB Chain, has lost its $1 peg. This is just another in a long list of stablecoins that have lost their peg this year, furthering the woes of the crypto market. At the time of publishing, HAY had fallen to $0.698 after bottoming at $0.40.
The depegging appeared to be the result of an exploit. The team acknowledged that it was aware and will soon release an update.
HAY is a ‘destablecoin’ that comes from the Helio Protocol that uses BNB as collateral. The overcollateralized asset claims to offer 7% in yield.
Helio Protocol describes a destablecoin as “a new type of asset class within the crypto space that seeks to label a more accurate term in the current stablecoin landscape.”
Two points are especially worth noting about destablecoins. The team emphasizes the first main distinction as completely decentralized. The second is that it desires to “achieve stability broadly without an absolute peg to the fiat currencies.”
Ankr exploit involved Helio Protocol
The exploit of Ankr Protocol, which lost $5 million, led to HAY’s depegging. Ankr is a web3 infrastructure provider for the BNB Chain ecosystem. PeckShieldAlert and reporter Colin Wu spoke of the exploit on Twitter, describing how the attacker took advantage.
The attacker leveraged a flaw in Ankr Protocol, converting aBNBc into hBNB and staking it into Helio Protocol. They could then lend more than $16 million BHAY0 and exchange it for HAY0. After this, HAY collapsed sharply.
The BNB Chain has been subject to some high-profile exploits this year. In October, hackers exploited a cross-chain bridge for a whopping $570 million. Binance halted the chain and managed to freeze $7 million in funds.
2022 sees multiple stablecoin depeggings
2022 has not been kind to stablecoins, with several of them undergoing depeggings. USDT, USDD, HUSD, DEI, and others all lost their pegs to various degrees following market incidents. These assets lost their peg during the market’s drop earlier in the year.
The market caps and TVLs of these assets have also fallen after the FTX collapse. USDT and DAI have lost 5.74% and 7.81% in TVL over the last month. USDT continues to dominate the market with 46.28% of the market share.
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