Waves blockchain founder Sasha Ivanov issued a statement today confirming that the Waves ecosystem is fully functional and decentralized, and that he will unveil another stablecoin after providing a plan to stabilize USDN, the Waves ecosystem’s algorithmic, dollar-pegged cryptocurrency.
Two things:— Sasha.waves (@sasha35625) December 20, 2022
– I will launch a new stable coin
– There’s gonna be a $USDN situation resolution plan set in motion before.
The current price of USDN is only $0.58, and marked as an “investment warning” by South Korea. USDN is an algorithmic stablecoin backed by WAVES, the Waves blockchain’s native token.
To mint USDN, users must lock in WAVES in the Neutrino protocol, whereas redemptions have the opposite effect of taking the stablecoin out of circulation while unlocking WAVES. Neutrino is an algorithmic, price-stable, multi-asset Waves protocol that enables the creation of stablecoins.
Ivanov explained in the announcement that the amount of WAVES in the USDN contract is not significant enough to affect price, even if all WAVES were drained. He pointed out that Neutrino has never created any new WAVES tokens. And there is no way to exhaust the contract in a single day or entirely.
According to the announcement, the team is making significant progress toward repegging USDN, and Neutrino will soon release an updated whitepaper that will completely transform the mechanics of USDN. To protect the peg, it will implement a Treasury, USDN issuance controls, and a Market Maker Bot.
The community will entirely govern the treasury, including monetary policy decisions such as issuance and treasury spending on additional backing or distributing surplus to USDN holders. The model will address the shortcomings of two of the most popular stablecoins, DAI and USDT.
Furthermore, I would like to make it clear that Waves is a decentralized ecosystem of applications. It does not rely on a single project for its survival; it also does not require the participation of any centralized exchange to exist and function as it should. This is why Waves Ecosystem is now accelerating its plans to provide all the services of centralized exchanges within its flagship decentralized exchange – WX.Network, Ivanov added.