Waves founder unveils plan to save USDN stablecoin
Blockchain ecosystem projects will donate $15 million in native tokens
22.12.2022 - 16:00
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What’s new? Waves blockchain network founder Alexander Ivanov presented a plan to save Neutrino USD (USDN) and the mechanism of operation of the future stablecoin of the second version. The latter includes multi-collateral and swaps. The Neutrino team proposed 5 solution options to increase USDN reserves and stabilize the peg to the US dollar. It is proposed to add support for Waves ecosystem tokens to be deposited as backing in the Neutrino contract. In addition, ecosystem projects including WX, VIRES, SWOP, EGG, and WEST will allocate $15 million in assets to save USDN.
Plan details. The plan also includes reactivating swaps for USDN. The Neutrino team offers SURF and NSBT holders an opportunity to receive USDN swap fees from all tokens in the Waves ecosystem, including WX, VIRES, SWOP, EGG, and WEST. The last bailout option is to restore unconditional rights allocation for users with USDN locked in Vires Finance, in accordance with daily withdrawal limits. Each of the proposed items is intended to have a specific impact on the problem of USDN depegging, the blog says.
A vote by the Neutrino community to approve the plan to save USDN will take place from December 22 to 26. The initiative will be implemented by developers from December 27 to January 5. Voting on contract updates and UI will take place from January 6 to 10.
The overall impact of these five proposed changes is designed to turn USDN into an index fund for all tokens in the Waves ecosystem. The value of USDN will be tied to the value of the ecosystem’s basket of collateral tokens, each of which is an asset with value growth potential. At the same time, swaps will be re-enabled, allowing arbitrage traders to profit from USDN price movements.
What is known about the projects? Waves was launched in 2016 and uses the Leased Proof of Stake (LPoS) consensus algorithm. The platform is used to issue tokens and conduct crowdfunding campaigns. The WAVES token is used as collateral for USDN. Neutrino USD is released in 2019 on the Waves blockchain with the Proof-of-Stake (PoS) consensus algorithm and is fully backed by WAVES coins. Based on the Neutrino protocol, it is possible to create stablecoins tied to real assets, such as national currencies or commodities.
Earlier, representatives of Waves said that USDN is not internally linked to the network’s native token and is a separate project. The team’s statement comes as South Korea’s regulator warned of the dangers of investing in WAVES on December 8, after another USDN depegging. Following that, the local exchange Upbit began a review of the asset, the result of which could be its delisting.
On December 20, Ivanov announced the launch of a new stablecoin after the problem with USDN’s depegging from the dollar would be solved. He promised that the new asset would be more stable and would not lose parity with the fiat currency. The next day, Ivanov asked the centralized exchanges (CEXs) to stop trading WAVES futures. According to him, it contributes to the spread of “fear, uncertainty and doubt” (FUD) around the asset and earnings from short positions.
As of December 22, 16:00 UTC, WAVES is trading at $1,55, having gained 2,51% in 24 hours, according to Binance. USDN has risen by 8,6% to $0,555684, according to data aggregator CoinGecko.
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