- Ivanov cited the existing USDN model’s insensitivity to market volatility for depeg.
- At the beginning of April 2022, USDN saw its first significant collapse.
Waves CEO and founder Sasha Ivanov plans to release a new stablecoin. As the controversy surrounding Waves-backed stablecoin Neutrino USD (USDN) continues. Ivanov used Twitter on December 20 to reveal the USDN problem resolution strategy and a new stablecoin initiative.
According to Ivanov, the new stablecoin would be “a hybrid between an algorithmic stablecoin.” And will be built on the decentralized autonomous organization paradigm. It will be accomplished using a method that is unique to Waves and hence impossible to replicate on other chains, he said.
New Stablecoin Should Enable USDN Re-establish Value
Moreover, Ivanov cited the existing USDN model’s insensitivity to market volatility as a major cause of the meltdown, arguing that more resilient models should be created.
Waves have no intention of moving away from USDN despite the stablecoin’s flaws. Ivanov said, “USDN will not be completely phased out”, and he is absolutely dedicated to stabilizing USDN, and the new stablecoin should actually enable USDN to reestablish its value. The CEO continued, stating that over-collateralization and adaptive algorithms will aid in the creation of “un-depeggable assets.”
Neutrino USD is a stablecoin founded by Waves that is algorithmically tied to the US dollar. Moreover, it has been a struggle for the USDN stablecoin in 2022 to keep its 1:1 peg, and the stablecoin has fallen below its peg on many occasions.
At the beginning of April 2022, USDN saw its first significant collapse, with the stablecoin falling to $0.8. Several crashes have occurred since then, with the most recent one sending the USDN to as low as $0.53. According to CMC, the current value of one USDN coin is $0.53 as of the time of this writing.
