About 14 days ago, the stablecoin, Neutrino USD (USDN) hit a high of $0.994 per unit and since then USDN has been unable to rise beyond the $0.97 per unit range The USDN has been unable to rise above the $0.97 per unit range since then. This dollar-pegged asset is associated with the Waves blockchain protocol, and recently the Neutrino Protocol decided to add a token called SURF to the USDN reserve basket “to improve the recapitalization mechanism for USDN reserves.”
Waves Stablecoin USDN Falters, Team Adds SURF to Improve Algorithmic Stablecoin’s Reserve Mechanics, Waves Founder Dismisses Critics.
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Another stablecoin showed a deviation fromUSD parity; USDNhit a low of $0.94 per unit on September 5, 2022; Coingecko.com statistics show that Neutrino USD fell further the previous day to $0.94 per coin. The 30-day index shows that USDN fell to $0.905 on August 26. This is not the first time USDN has deviated from its $1 parity; prior to the August 26 low, over the course of the year, Neutrino USD had three $1 price drops below the $1 price level. major declines.
Prior to August 26, on July 14, USDN prices fell to $0.938 per token, and on May 11, USDN fell to $0.824 per coin. on April 4, neutrino usd fell further than the loss recorded on May 11. dropped, and on that day USDN dropped to $0.787 per coin. More recently, the Neutrino Protocol added a token called, SURF (Smart Utility Recapitalization Feature) to the USDN’s basket of reserves; SURF has been added to the USDN stablecoin, the NSBT, and WAVES, so there are now four different tokens utilized for USDN reserves.
Neutrino Protocol calls itself “an algorithmic price stable capitalization protocol that acts as an accessible defi toolkit.” The team believes that,SURF believes it will “achieve BR equilibrium and improve USDN’s backing ratio (BR) by providing additional incentives to the community and investors.” Some crypto advocates,stated. Waves developers are creating ways to make USDN “undepeggable” and SURF is a solution towards that effort; adding SURF to the USDN reserve mix has also been subject toscrutiny and criticism
Some individuals have stated thatisWaves is a Ponzi scheme and USDN has been compared to Terra’s UST. However, Waves founder Sasha Ivanov discussed the criticism with Coindesk on August 31 and denied comparing USDN to Terra’s UST.” USTs are not backed by anything – LUNA (tokens) were burned to create USTs. It was never intended to be backed by anything other than an algorithm,” Ivanov told the reporter.” The “USDN” is the opposite: the WAVES tokens are held in a smart contract to collateralize the USDN.”
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