14 days ago, the stablecoin Neutrino USD (USDN) rose to $0.994 per unit. Since then, USDN has failed to rise above $0.97 per share. The Dollar Page asset is linked to the Waves blockchain protocol, and recently the Neutrino protocol decided to add a token called SURF to the USDN reserve basket to “improve the mechanics of repurchasing USDN reserves.”
Waves Stablecoin USDN Falters, Group Adds SURF to Improve Algorithmic Stablecoin Reserve Mechanics, Waves Founder Dismisses Critics
On September 5, 2022, the USDN hit a low of $0.94 per unit, another stable coin, showing a departure from the US dollar parity. According to Coingecko.com statistics, Neutrino USD has fallen even a day earlier, sliding to $0.918 per coin. The 30-day benchmark USDN fell to $0.905 on August 26. This is not the first time USDN has broken out of the $1 parity. Since the August 26 low, year-to-date, Neutrino USD has seen three more significant drops below the $1 price point.
Before August 26, on July 14, USDN price dropped to $0.938 per token and on May 11, USDN dropped to $0.824 per coin. On April 4, USDN fell 0.787 cents to $0.787, even less than the loss recorded on May 11. Recently, the Neutrino protocol added a token called SURF (Smart Resource Recovery Feature) to the USDN reserve. There are four different tokens used for USDN stock as SURF joins the USDN stablecoin, NSBT and WAVES.
The Neutrino Protocol bills itself as an “algorithmically stable pricing protocol as an accessible DeFi toolkit.” The group believes that SURF will improve USDN’s leverage ratio (BR) by “achieving BR balance and providing additional incentives to the community and investors.” They have some crypto supporters he said. Wave developers are creating ways to make USDN “unreversible”, and SURF is a solution to that effort. SURF has come under the addition of the USDN reserve mix. Analysis and criticism as well as.
Some individuals have he said. Ripples is a ponzi scheme and USDN is compared to Terra UST. However, Waves founder Sasha Ivanov discussed the criticism with Coindesk on August 31 and rejected the comparison of USDN to Terra UST. “UST is not supported by anything – LUNA [the token] Burned to create UST. Ivanov told the reporter that it was never intended to rely on anything other than an algorithm. “It’s the opposite of USDN. WAVES tokens are held in a smart contract to secure USDN.
What do you think about USDN remaining below $0.97 per unit and away from $1 parity? Let us know what you think about this in the comments section below.
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