Home Stable coins Waves’ Stablecoin USDN loses binding after protocol update

Waves’ Stablecoin USDN loses binding after protocol update

by Chief editor

The algorithmic stabelcoin Neutrino Dollar (USDN) has once again lost parity with the dollar, for the fourth time this year. At the time of writing, the token is trading at $0.90. In April, the USDN price fell to 0.78 amid a scandal when Waves Platform founder Alexander Ivanov accused Alameda Research of manipulating the WAVES price. The stabelcoin fell to $0.82 in May, and traded below $1 again in June at around $0.93 per token. To address the stability issues, the project team initiated a vote to change the parameters of the protocol.

Losing the bind
On August 24, the project team made community-approved changes to the protocol parameters. These include adjustments to the maximum swap amount, support ratio protection mechanics and improved reward distribution.

An exploit in the Acala Network on 15 August led to a 99% drop in the price of the Acala USD (aUSD) network’s Stablecoin. At the time of writing, aUSD is still trading at $0.65 per token. Also earlier this month, HUSD, the stablecoin backed by cryptocurrency exchange Huobi, started trading at $0.82 due to liquidity issues. According to a statement from the exchange, the closure of market maker accounts to comply with regulatory requirements caused short-term depreciation, which was promptly addressed by issuers.

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