Suche
Mein Konto
The algorithmic stablecoin Neutrino USD is on the verge of failure
USDN has been trading below $1 since Friday, April 1 Waves DeFi ecosystem's TVL is down $1.3 billion, more than 27% An emerging stablecoin with a current market cap of nearly $1 billion has deviated dangerously from its U.S. dollar peg, putting its very existence in question. USDN, the Waves blockchain ecosystem's stablecoin, was said to be worth $1, but was trading for just 79 cents as of 3:15 p.m. ET on Monday. USDN or Neutrino USD is considered an algorithmic stablecoin because its supply can expand and contract by burning or minting WAVES, the native token of the proof-of-stake Wave protocol. …
The algorithmic stablecoin Neutrino USD is on the verge of failure
- USDN wird seit Freitag, dem 1. April, unter 1 $ gehandelt
- Die TVL des Waves DeFi-Ökosystems ist um 1,3 Milliarden Dollar gesunken, mehr als 27 %
An emerging stablecoin with a current market cap of nearly $1 billion has deviated dangerously from its U.S. dollar peg, putting its very existence in question.
USDN, the Waves blockchain ecosystem's stablecoin, was said to be worth $1, but was trading for that as of 3:15 p.m. ET on Monday only 79 cents.
USDN or Neutrino USD is considered an algorithmic stablecoin because its supply can expand and contract by burning or minting WAVES, the native token of the proof-of-stake Wave protocol.
WAVES was on an absolute tear just on Thursday when it jumped 600% in just over a month. But now, shattered by USDN's woes, WAVES is collapsing.
The majority of economic activity and Total Value Locked (TVL) in the Waves ecosystem is associated with the use of USDN.
The ability of the Neutrino protocol The issuance of USDN is related to the price of WAVES, as each USDN is backed in kind by a staked WAVES token. The price also affects the return users earn on USDN per year Vire's finances dApp, Waves’ money market protocol – similar to Compound or Aave on Ethereum. As the value of WAVES increases, the interest earned by depositors also increases.
But last week, a pseudonymous DeFi analyst with the username 0xHamz claimed that Waves was using the USDN minting process in combination with Vires to artificially inflate both the price of WAVES and the supply of USDN.
Quote On-chain data 0xHamz outlined a pattern of depositing USDN as collateral to borrow other stablecoins, which were transferred to Ethereum and then to the Binance exchange, followed by corresponding withdrawals of WAVES used to mint additional USDN.
The value of a blockchain tends to grow as usage increases, but as 0xHamz pointed out, transactions on Waves have been stagnating or declining since their peak in 2019.
Wave’s TVL is almost entirely due to Neutrino – a mirror image of WAVES – and Vires Finance DeFi Llama data.
A recent “ Transformation plan ” notes that 80% of WAVES are used for staking. The roadmap includes updating the blockchain consensus mechanism and adding compatibility with the Ethereum Virtual Machine (EVM).
Waves founder and lead developer Sasha Ivanov is moving to an advisory role, with development responsibility shifting to a new US company, Waves Labs, the company said.
Ivanov accused Alameda Research and claimed price manipulation to profit from a short position in a Twitter thread on Sunday a claim Alameda founder Sam Bankman-Fried dismissed as a “conspiracy theory.”
A spokesperson for Waves Labs did not respond to a request for comment.
. .
The post Algorithmic stablecoin Neutrino USD is on the verge of failure is not financial advice.