Following market concerns raised by Justin Sun about First Digital Trust’s solvency, FDUSD briefly depegged, dropping below $0.95 at 12:06pm EST before quickly recovering.
To mitigate potential risk, Gauntlet acted at 12:41pm EST by invoking emergency admin controls on Euler Yield to set the supply and borrow caps of the eFDUSD-1 vault to zero. While vault exposure was limited, the intervention preemptively eliminated the possibility of users supplying FDUSD at stale oracle prices and extracting undercollateralized loans.
Gauntlet will continue to monitor markets and act decisively to safeguard protocol health when needed.