The stablecoin neutrino USDN (USDN), reached a peak of $0.994 per Unit 14 days ago. Since then USDN has never been above $0.97 per Unit. The dollar-pegged asset is associated with the Waves blockchain protocol, and recently the Neutrino Protocol decided to add a token called SURF to USDN’s reserve basket in order to “improve the mechanics of recapitalizing USDN reserves.”
Waves Stablecoin USDN Falters, Team Adds SURF to Improve Algorithmic Stablecoin’s Reserve Mechanics, Waves Founder Dismisses Critics
USDN touched a low at $0.94/unit on September 5, 2022, which is another example of a stablecoin that has deviated from U.S. Dollar parity. Coingecko.com statistics show that neutrino USD dropped further the previous day, falling to $0.918 per coins. USDN fell to $0.905 in 30-day metrics on August 26. It’s not the first time USDN has deviated away from the $1 parity. The August 26th low was not the first significant drop in neutrino usd’s price below $1.
Prior to August 26, on July 14, USDN’s price dropped to $0.938 per token and on May 11, USDN slipped to $0.824 per coin. As the price of neutrino was lower than on May 11, USDN fell to $0.787 per currency that day. In more recent times, the Neutrino Protocol added a token called SURF (Smart Utility Recapitalization Feature) to USDN’s basket of reserves. There are four tokens that can be leveraged to increase USDN reserve value. SURF is now part of the USDN stablecoin (NSBT), WAVES, and WAVES.
Neutrino Protocol calls itself “an algorithmic price-stable assetization protocol acting as an accessible defi toolkit.” The team believes SURF will improve USDN’s backing ratio (BR) by achieving “BR equilibrium and provide additional incentives for the community and investors.” Some crypto proponents have said Waves developers are creating ways to make USDN “undepeggable,” and SURF is a solution toward that effort. The USDN reserve mixture has been enhanced by adding SURF. scrutiny and criticismYou can also find them here.
Some people have said Waves 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 he dismissed the comparison of USDN to Terra’s UST. “UST was backed by nothing – LUNA [the token]UST. It was never intended to be backed up by anything other than the algorithm,” Ivanov told the reporter. “The opposite is true of USDN. WAVES tokens are held in a smart contract to collateralize USDN.”
Do you have any thoughts about USDN being below $0.97 per unit and the deviations it makes from $1? Comment below and let us know how you feel about the subject.
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