DeFi protocol Altura announced on Sunday that it will begin an orderly wind-down of its stablecoin yield vault following substantial withdrawal requests over the weekend. CEO Ranveer Arora stated the platform processed more than 8.5 million USDT in instant redemptions over the 24 hours leading up to his post, amid what he described as an "unprecedented level" of withdrawal requests. The announcement came after Main Street's yield-bearing msUSD stablecoin crashed over 70% on Saturday, triggering contagion fears across similar DeFi protocols despite Altura's statement that it had no direct exposure to Main Street or its strategies.
Altura Processes 8.5 Million USDT in Withdrawals Before Wind-Down
In a post on social media platform X, Arora said the platform has processed more than 8.5 million USDT in instant redemptions over the 24 hours leading up to his post. "Given the sustained withdrawal demand and current market sentiment, we have made the difficult decision to begin an orderly wind-down of the Altura vault," Arora wrote. "Our priority remains the protection of user capital and ensuring all redemptions are completed in a fair, transparent, and efficient manner."
The vault had reached a peak total value locked of $39 million on HyperEVM. The vault allocates stablecoin deposits across multiple strategies, including funding-rate arbitrage, market making, and real-world asset (RWA) positions.
According to Arora, Altura has notified all counterparties and partners of the decision and has begun unwinding positions, including allocations held on exchanges, in private credit, and in real-world asset strategies. The CEO added that some positions may take longer to be fully redeemed.
Main Street msUSD Depegs 70% After Accountable Terminates Service
Main Street's stablecoin crashed over 70% on Saturday, after its proof-of-solvency provider, Accountable, terminated its service agreement with the issuer. Accountable said in its announcement that Main Street was unable to meet its verification standards. Accountable also provides proof-of-solvency services for Altura.
Arora indicated in his announcement that Altura was affected by unverified market speculation. "I am deeply disappointed by how quickly misinformation and speculation can spread within the industry," Arora said. "Altura has always operated with transparency and integrity, and it is unfortunate to see unfounded narratives contribute to market fear and withdrawal pressure."
Altura States No Direct Exposure to Main Street Strategies
Although Altura explicitly stated it had no direct exposure to Main Street or its strategies, the depegging apparently triggered contagion fears across similar protocols. Altura's official account published a statement earlier Sunday regarding the depegging of Main Street's yield-bearing msUSD.
"Our HyperEVM lending vault (Alpha USDT Prime), the associated USDT/AVLT market, and borrowers utilizing our Ethereum vault remain unaffected by this event," Altura said in an update prior to Arora's announcement of the winddown.
FAQ
What did Altura announce on Sunday?
Altura announced on Sunday that it will begin an orderly wind-down of its stablecoin yield vault following substantial withdrawal requests over the weekend. CEO Ranveer Arora stated the platform processed more than 8.5 million USDT in instant redemptions over the 24 hours leading up to his post.
Why did Main Street's msUSD stablecoin depeg?
Main Street's stablecoin crashed over 70% on Saturday after its proof-of-solvency provider, Accountable, terminated its service agreement with the issuer. Accountable said in its announcement that Main Street was unable to meet its verification standards.
Does Altura have direct exposure to Main Street?
Altura explicitly stated it had no direct exposure to Main Street or its strategies. The protocol said its HyperEVM lending vault (Alpha USDT Prime), the associated USDT/AVLT market, and borrowers utilizing its Ethereum vault remain unaffected by the Main Street depegging event.
