NXUSD

NXUSD no longer functions as a working dollar. Issued by Nereus Finance, an Avalanche lending protocol, it operated as an over-collateralized stablecoin minted against crypto deposits and redeemed through the protocol. In September 2022 an attacker used a large Aave flash loan to manipulate a price oracle and mint roughly a million NXUSD against far less collateral, walking away with about $371,000 and leaving bad debt in the system. The team said it covered the shortfall from its treasury, but the protocol wound down thereafter and the token has since lost its peg and any reliable redemption path. What remains trades as a remnant on Polygon and Avalanche with no functioning issuer or collateral engine behind it. It stands as a small case study in how oracle manipulation can undermine a collateralized-debt stablecoin even when the core lending market is technically solvent.