PORTLAND, Oregon (BLOOMBERG) - Deus Finance's DEI token has lost its one-to-one peg to the United States dollar, becoming the latest failure of an algorithmic stablecoin during a period of crypto market stress.

DEI is currently trading at 70 US cents, according to data tracker CoinGecko. With a market value of about US$63.5 million (S$88.3 million), the token is tiny compared with the more than US$18 billion TerraUSD (UST) stablecoin that shook crypto markets when it became depegged last week.

Unlike after the UST break, the drop below the peg by DEI has not triggered concern about a broader crypto market contagion. Bitcoin fell less than 4 per cent on Monday, while popular decentralised finance tokens such as Solana and Cardano were down similar amounts.

Put out by Deus Finance, a marketplace for financial services, DEI is different from UST in that it is a fractional reserve stablecoin, backed by coin collateral, consisting of 20 per cent Deus tokens and 80 per cent of other stablecoins, such as USDC.

Deus Finance's team is working to restore the peg, according to a Tweet.

The depegging comes several months after Deus Finance was hacked, with some coins stolen.

UST is currently trading at about five US cents. Last week, even the world's biggest stablecoin, Tether - which is not algorithmic and claims to have full reserves - lost its dollar peg before regaining it.

Crypto bellwether Bitcoin is trading at less than US$30,000, down from over its all-time high of almost US$69,000 in November.