Vader Protocol Announces Closure of Algorithmic Stablecoin USDV

  • The Vader team suspended the app’s minting functionality in May.
  • The burn feature has been temporarily disabled.

There will be no further releases of the app that generates the stablecoin Vader Protocol US Dollar (USDV), its creators said on December 29.

Like the doomed Terra network, Vader protocol was an algorithmic stablecoin network. It was hoped that encouraging arbitrages would ensure that USDV would always be worth $1. The Vader team suspended the app’s minting functionality in May. As Terra assets began to depeg from the underlying assets they were meant to represent. Its goal was to shield consumers from any harm associated with the depeg of both its stablecoin and the underlying currency.

Investors Funds at Stake

According to the Vader team, they spent the following six months attempting to secure the app with a complete overhaul. The researchers, however, discovered no major breakthrough in the algorithmic stablecoin design that is capital efficient despite their efforts.

Furthermore, they’ve temporarily disabled the burn feature, making it difficult for customers to redeem their remaining USDV using the app. Instead, the remaining funds in the app will be distributed via a redemption portal. Until June, they intended to keep the redemption app up and running.

Moreover, the developers have snapshotted existing shares. And split the Curve and Uniswap liquidity pools in order to distribute the remaining monies evenly to holders. Using the Vader Protocol It is unknown if USDV investors would get back $1 worth of crypto per coin or any lower amount, since USDV seems to have been delisted on all the prominent coin price data fees.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.