flexUSD

flexUSD was built to pay you while you held it: a yield-bearing dollar from the derivatives exchange CoinFLEX that rebased interest straight into wallets, at times advertising rates near 18 percent. That model depended entirely on the exchange staying solvent, and in June 2022 it did not. CoinFLEX halted withdrawals after a large counterparty, reportedly Roger Ver, failed to meet a margin call worth roughly 47 million dollars, freezing customer funds including flexUSD balances. The token lost its peg badly, trading as low as 0.23 dollars as confidence evaporated in the wake of the Terra collapse. flexUSD is defunct: the yield stopped, redemptions were locked, and it never recovered its dollar value. Its arc is a textbook lesson that a stablecoin is only as sound as the entity promising to honour it.