Executive Summary
PSI flatlined at 85.9, its lowest in 24 days of tracking. KAU resolved 3 depegs and promptly depegged again. USDA lost 75% of its DEX liquidity overnight.
PSI sits at 85.9 for a second straight day, its lowest reading across all 24 days of Digest tracking, while the 7-day trajectory tells the real story: a clean slide from 95.2 last Monday to 88 yesterday and now flatlined at the floor. The regime reads TENSION, and for once the label fits. Eleven coins migrated from CALM to WATCH in the DEWS bands overnight, bringing the WATCH count from 46 to 57, the widest non-ALERT expansion this month.
Peg Watch. KAU, a $369.80M gold-pegged token, is doing more work on the severity score than the rest of the field combined, contributing 243.3 of PSI's severity component at 658 bps off-peg. It resolved 3 separate depegs in the past 24 hours, one peaking at 831 bps over 11 hours, only to slide right back into a fresh 659 bps deviation. Its sibling KAG resolved twice as well, hitting 806 bps before snapping back. Five resolved depegs and 18 still active: KAU is not recovering, it is oscillating.
Liquidity Drain. Beneath the peg noise, USDA lost 75% of its DEX TVL overnight, dropping from $2.45M to $611K while sitting at ALERT with cross-source divergence at 88 and liquidity erosion at 85. MUSD shed $28.5M in pool depth in a single day, its liquidity score falling from 57 to 45. FDUSD's yield collapsed from a 7-day average of 5.53% to 1.7% on $385.61M in market cap, the kind of trend that precedes supply contraction, not follows it.