Metronome Synth USD
MSUSD
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
MSUSD (Metronome Synth USD) exhibits critical structural and operational failures across all evaluated dimensions, resulting in an overall score of 1.9/10. In July 2026, the protocol suffered a catastrophic solvency failure as established in the security analysis: "MetronomeDAO disclosed that approximately 6,367 msETH and 4.57 million msUSD in circulation — about $15.7 million — lacked collateral backing, equal to roughly 31% of all msETH and 16% of all msUSD in existence." This shortfall stemmed from trading bots exploiting delayed Chainlink price-feed latency within the swap module over multiple months, leading to a severe and unresolved depeg where MSUSD trades at roughly $0.67–$0.68 (a ~33% discount to its intended $1.00 peg). Active development is stalled with no new releases or governance proposals in 2025–2026, on-chain community governance is dormant with negligible engagement and only 441 Ethereum holders, and core synth swapping functionality remains restricted under punitive fees. With unresolved partial insolvency and broken peg mechanics, MSUSD fails its primary utility as a stable asset.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Metronome Synth USD (MSUSD)
Metronome Synth USD (MSUSD) is an omnichain synthetic USD stablecoin issued by Metronome DAO and developed by the Bloq DeFi team. Operating as a LayerZero Omnichain Fungible Token (OFT), MSUSD is deployed across multiple blockchain networks, including Ethereum, Base, and Optimism. The asset is designed to function as a crypto-collateralized synthetic dollar, enabling users to mint and transfer synthetic liquidity across supported networks within the Metronome Synth protocol.
In July 2026, Metronome DAO disclosed a major protocol insolvency event involving an unbacked shortfall of approximately $15.7 million in circulating synthetics, comprising roughly 4.57 million msUSD (around 16% of its supply) and 6,367 msETH (around 31% of its supply). The shortfall occurred after trading bots exploited delayed Chainlink price-feed latency within the protocol's swap module over several months, an issue compounded by fee structures that failed to account for oracle lag. Prior to this disclosure, synth operations had also been temporarily suspended between April and May 2026 due to dependency concerns surrounding the external $292 million Kelp DAO bridge exploit.
Following the discovery of the unbacked supply, MSUSD suffered a sustained depeg from its target $1.00 value, trading at a persistent 30% to 33% discount in the $0.67 to $0.68 range. Core swap functionality was subsequently restricted under punitive fees while the protocol relied on treasury buyback mechanisms to address the shortfall. In addition to the collateral deficit and broken peg mechanics, protocol development and governance activity have largely stalled, with no new releases or active governance proposals recorded in 2025–2026.