Neutrino USD (USDN) lost its U.S. dollar peg as WAVES saw a double-digit price slide
The stablecoin of the Waves ecosystem, Neutrino USD (USDN), lost its $1 peg as WAVES saw a double-digit slide.
USDN/USD 4-hour chart | Source: TradingView
Neutrino USD (USDN) market cap nearly doubled to $850 million but then depreciated to close at $1…
“The USDN peg started to wobble on March 31 and … crashed almost 20% as of today, wiping $200 million in the process,” pseudonymous market expert and Anchor user Duo Nine (Twitter handle @DU09BTC) told CoinDesk. “Considering the total circulating supply of USDN tokens is 1 billion (with 1 USDN valued at around 0.80 USD), this is a major blow to USDN holders.”
WAVES, a cryptocurrency offered as a reward for mining blocks on the open-source Waves blockchain, dropped 15% to $42. Users need WAVES keys in Neutrino smart contracts to mine USDN, while exchanging USDN has the opposite effect of destroying stablecoins to unlock the WAVES supply.
Last week, several people on Twitter accused Waves of manipulating token prices through the DeFi lending platform Vires.finance. WAVES has surged more than 200% in March, making it one of the best performing coins with a market cap of at least $1 billion.
Waves CEO Sasha Ivanov has denied allegations that Alameda Research manipulated Wave prices and carried out a media campaign to trigger a sell-off. Alameda was founded by the CEO of crypto exchange FTX Sam Bankman-Fried.
On Sunday, Ivanov submitted a new governance proposal, which is said to prevent speculative activities. “In order to prevent price manipulation and protect the ecosystem, I propose to temporarily reduce the liquidation threshold for Waves and USDN borrowing to 0.1%. Also, I propose to limit the maximum borrow APR (annual percentage rate) to be 40%,” the proposal reads.
Crypto Twitter backed the proposal, calling it an attempt to subvert the system for the benefit of insiders. Meanwhile, Vires.finance is losing liquidity amid the controversy. According to data source Defi Llama, the total value locked in the DeFi platform has dropped to $945 million from a record $1.26 billion in three days.
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