Executive Summary
MUSD enters DEWS ALERT on liquidity erosion while its TVL quintupled overnight to $56.18M. Contradictions like that are how $18.65M coins become case studies.
PSI clawed back to 94.5, its highest reading in a 7-day BEDROCK streak, yet the regime reads TENSION for good reason. Beneath that composure, DEWS shifted a coin into ALERT for the first time in the current window: MUSD, with a score of 36 driven by liquidity erosion maxing out at 100. The 29 coins sitting in WATCH, down from 31 yesterday, obscure the fact that the one promotion to ALERT carries more signal than the two demotions combined.
MUSD Under the Lamp. MUSD's DEX liquidity score surged from 49 to 62, its TVL ballooning from $10.58M to $56.18M overnight, yet DEWS flagged it for erosion, not abundance. That contradiction suggests the new liquidity is shallow or concentrated, enough to inflate a TVL number without actually deepening the order book for an $18.65M coin. Cross-source divergence at 70 reinforces the picture: pricing feeds disagree about what MUSD is actually worth.
FDUSD's Fever. Meanwhile, FDUSD is printing a 30.04% APY against a 7-day average of 7.07%, a 4x spike on a $375.31M coin. That kind of yield divergence on a top-50 stablecoin typically signals either a fleeting arbitrage window or an incentive structure about to snap back hard. USDC, freshly at its all-time-high market cap of $79.25B after adding $1.97B this week, continues absorbing capital with the quiet confidence of a coin that doesn't need to pay 30% to attract it.