After failing to adjust the prices of two stablecoins that lost their peg on its platform, Scream, a decentralised lending protocol on the Fantom network, incurred a $35 million debt.
The Fantom USD (fUSD) and DEI stablecoins had their value hardcoded to $1 in the DeFi protocol, therefore their depreciation did not influence the platform.
Whales who had the coins took advantage of the situation by draining the protocol of every other stablecoin and depositing the two de-pegged tokens. FRAX, Fantom USDT, USDC, and MIM are among the stablecoins available on the site.
The protocol has suffered massive losses, with DEI plummeting to $0.52 and fUSD hitting $0.69. However, the fact that the fUSD platform had an infinity limit made matters worse by allowing actors to drain the protocol by borrowing against bad debt.
The protocol has lost 50% of the total value of assets locked in its smart contract in the last 24 hours, according to DeFiLlama statistics.
Aside from that, the native token $SCREAM has lost more than half of its value. According to CoinGecko data, it is currently trading for $3.18.
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