The Waves-backed stablecoin fails to maintain its dollar peg


As the cryptocurrency community tries to weather the bear market and recover from the impact of stablecoin incidents like the Terra crash, another algorithmic stablecoin has shown signs of concern about its value falling below the US dollar peg, such as Cointelegraph reported.

According to Cointelegraph, stablecoin Neutrino Dollar (USDN) has again shown a divergence from dollar value, marking the fourth time USDN has struggled to maintain its dollar peg for the year. At the time of publication, the Waves-focused stablecoin was trading at $0.90. In April, USDN fell to $0.78 as allegations of price manipulation mounted. After recovering within the first few days of its crash, the digital asset showed signs of weakness in the months that followed, as it fell to $0.82 in May and traded at nearly $0.93 per token in June.

Based on information from Cointelegraph, to resolve the stablecoin issues, the stablecoin team initiated a voting system to initiate changes within the protocol’s parameters, which include changes to the maximum swap amount, measures to protect the coverage ratio, and improving the distribution of rewards includes. The goal behind these changes would be to improve the economies behind the protocol.

Additionally, Cointelegraph noted that a recent exploit on the Acala Network pushed the price of its stablecoin Acala USD (aUSD) down 99%. More than aUSD billion was minted from an unidentified source, leaving holders wondering how the decentralized finance protocol would recover. At the time of publication, aUSD was trading at $0.65 per token. Earlier, HUSD, a Huobi-backed stablecoin, fell to $0.82 due to a liquidity issue. According to the exchange, the depegging was due to the closure of market maker accounts for regulatory compliance, resulting in a short-term depeging set by issuers.

(With insights from Cointelegraph)

Also Read: Hetzner Sets Anti-Cryptocurrency Policies Ahead of Ethereum Merge

follow us on TwitterFacebook, LinkedIn


Comments are closed.