Executive Summary
PSI holds 87.7 for day two while PUSD loses 93% of DEX liquidity overnight, dropping from $535K to $38K. Twelve coins now sit at ALERT.
PSI printed 87.7 for the second straight day, a number that looks stable until you notice it sat at 90 just five days ago. The 6-day STEADY streak masks a week that opened in BEDROCK and never clawed back. BRZ remains the largest severity contributor at 176 bps and $270M, but its chronic above-peg drift is priced in by now. The real tension is underneath the index, in the plumbing.
Liquidity Drain. PUSD lost 93% of its DEX TVL overnight, collapsing from $535K to $38K while its DEWS score sits at ALERT with liquidity erosion pegged at 76. A $119M coin with $38K of on-chain depth is a trapdoor, not a stablecoin, and its grade just ticked up to C at 55, a number that now looks like dark comedy. satUSD shed 76% of TVL to $936K, and thBILL dropped 34% to $2.65M. Three mid-cap coins losing exit liquidity on the same day is not coincidence; it is a pattern.
Grade Rot. USR's slide from C to D at a score of 41 captures the week's mood: liquidity at 60 cannot save a peg score of 15 on a $47M coin. the Bank Run Gauge climbed to negative 12.2 from negative 35.7 yesterday, its least cautious reading since March 20. EURC saw $5.4M in net burns and IUSD shed $8M, both registering negative 100 pressure scores against their 30-day baselines. Capital is not fleeing to safety; it is simply leaving specific rooms.
The DEWS board added 2 ALERT entries in 24 hours, bringing the total to 12, while 69 coins sit at WATCH. DGLD's jump from WATCH to ALERT on liquidity erosion is a small story on a small coin, but the direction of travel across the board points one way. PSI reads calm. The pipes beneath it do not.