Waves: (yet again) a new stablecoin – This time “it will be different”

The USDN price since the beginning of November 2022

A stablecoin to save another – The stablecoins have become indispensable tools for the crypto ecosystem. Nevertheless, some may lack robustness and lead to situations, such as the fall of Terra (LUNA) last June. Blockchain waves and his USDN are learning it the hard way.

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Waves: USDN adrift in 2022

USDN (Where Neutrinos USD) is a blockchain-exclusive stablecoin waves. After behaving normally in 2021, it began to show signs of weakness last September. Indeed, its value began to fall, going from $0.99 to $0.87 within a few days. Subsequently, he managed to return to his peg. Unfortunately, this victory was only short-lived.

Thus, since the beginning of the month of novemberUSDN keeps falling. This has already lost half of its value and is currently trading around $0.51. A situation that is reminiscent of the crash of Terra’s UST.

The USDN price since the beginning of November 2022
USDN Price Drop – Source: CoinGecko

In practice, the USDN is what is called a algorithmic stablecoin. This is backed by WAVES tokens.

“The Neutrino USD (USDN) is an algorithmic stablecoin pegged to the US dollar and backed by WAVES. Building on the Waves protocol’s underlying consensus algorithm staking model, USDN staking generates a sustainable daily reward. »

Statement of Waves

Unfortunately, this “daily reward” is not sustainable. Indeed, the health of the USDN is highly correlated with that of the WAVES. However, the WAVES token saw its value drop from more than $50 last april at $1.50 at the time of this writing.

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A new stablecoin that will actually save Waves?

Faced with this situation, the founder of Waves has announcement his desire to create a new stablecoin. An announcement that is surprising to say the least in view of the situation of the USDN.

The founder of Waves announces a new stablecoin.
Waves founder announces the launch of a new stablecoin – Source: Twitter

Following this announcement, the founder of Waves said that this new stablecoin will not replace USDN. In addition, this guarantees that a “resolution plan” will be deployed to restore the situation of the USDN before the launch of the new stablecoin.

Afterwards, he stated that this new stablecoin would be “impossible to depeg ». According to other information shared with our colleagues from Coin Telegraph, this stablecoin will be a hybrid, with its own DAO and whose operation will be specific to the Waves blockchain and not replicable on another blockchain.

With so little information, it’s still unclear if this one will see the light of day or if the founder of Waves is trying to placate USDN users in the face of its dramatic downfall.

On Ethereum, a new stablecoin could also see the light of day. In fact, the protocol curve unveiled the whitepaper of a new kind of stablecoin.

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