It does make sense to have stablecoins that are fully collateralized such as USDC, BUSD, and EEUR as opposed to algo stablecoins such as UST and USDN. Most fully backed stablecoins can always be redeemed to their issued currencies.
tldr; Neutrino $USDN lost its peg for the first time since June 16 as it was updated to implement upgrades to the protocol. Bitcoin’s supply which was last active over a year ago, reached its all-time high this month and currently stands at 65.7%. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
This is my biggest fear about algorithm stablecoins. This is the fourth time in 2022 that USDN has failed to maintain its dollar peg for the fourth time in 2022. I'm better off with stablecoins like EEUR, BUSD, and USDC, which are fully reserved and audited regularly.
tldr; Algorithmic stablecoin USDN, which is designed to mimic the value of the U.S. Dollar, has fallen to $0.91. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
No. USDN relies on throttling the amount of WAVES/USDN you can handle based on the amount of their governance token you hold, plus a lot of smoke and mirrors about not having a burn mechanism, instead opting for smart contract locks. Effectively the same thing tho as mint:burn. But in the end it's just a slightly more complicated shitcoin, with a three token hinge rather than 2. And it's abused by the devs just like UST was.
Ironically USDN is once again failing for the same reason as UST; The team created massive inflated cap through leveraged degen strategies which their token WAVES (LUNA, anyone?) is unable to unwind when it needs to restore peg.
Check out waves platform and Vires finance. They offer insane stable APR. They have had a massive issues. Half a billion debt was taken out in USDN. And used to profit off of USDC. It locked up liquidity and made it impossible to withdraw. The devs and CEO Sasha so far have handled the situation amazingly and I am making so much fucking money right now. It’s 40% on stables and 130% on vires token governance and the rewards are paid out daily in USDC, USDT, USDN, EURN (dollar and Euro stables) BTC, ETH and waves. I was sceptical but it’s my own investment through this bear market that is just slightly down compare to being 99.9% down and the rewards have already put me into the profit zone in just a few months.
I’m still skeptical of tether, but it’s been weathering every storm. I think they’re here to stay, at least for a while longer. Edit: When it hit 0.97 I think we were all close to shitting our pants. I mean, USDN and USDD have dropped below $1 so it seems that it’s in better shape than most of its competitors.
FML right now there's one a way to burn TRX for USDD but going the other direction wont be implemented for several months. So I didn't think there would be much point to shorting until USDD mint and burn was fully implemented. Soooo I haven't made anything! 😂😭🙄🤷♂️ Been short waves though. It doesn't have a mint and burn mechanism but USDN is collateralized with WAVES. And right now USDN is very very very under collateralized. Waves can't hyper inflate to zero but USDN can still be burned for waves in a lending protocol so thought it would be a good short hedge for my portfolio.
Lol sorry what I should have said is "no one with a brain gives a shit about USDN or USDD". I wasn't specific enough and that's my mistake. You keep beating the drum on those two bottom-barrel shitcoins and their combined $8B market cap that everyone has known would collapse for over a month now
Lol Tron is tied to USDD. Waves to USDN. Together they have $8 billion in market cap…and a shit load more attached to them them. USDD is collateralized with $2 billion+ worth of assets, including $300 million BTC. But sure, totally irrelevant I’m sure it’ll be fine
I love how the market is so fucked nobody is even noticing USDN getting wiped off the peg taking $800 million with it. Wtf is USDN you ask? The fact you’re asking that and it almost hit $1 billion market cap is exactly why crypto is toast right now
Next in line is Neutrino protocol imo, USDN / Waves. USDN has already been slowly de-pegging for the past few days or so. It’s an algorithmic stable coin backed by Waves, and USDN offers staking yields at a “sustainable” 15% APY. Sound familiar at all?
If it's "only 92% collateralised" as stated in some sources I've seen since yesterday, that's actually quite a good number and no it won't fail. It looks like some are just trying to manipulate or cause bad PR against Tron/USDD as it looks very shady people talking about a stablecoin over 98 cents losing its peg and never mention USDN which is an algorithmic stablecoin and which has lost its peg for over a month now.
tldr; Waves is up by 124% in a 24-hour period amid a revival of its decentralized finance (DeFi) ecosystem. Over the weekend, Waves released a plan to rebuild its ecosystem “better than ever” in response to the de-pegging of Neutrino USD (USDN), a Waves-backed algorithmic stablecoin designed to exchange one for one against the US dollar. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
I know that there's a HUGE question mark surrounding USDT but there are obvious algocoins like USDD and USDN. They are still too small to cause an earthquake but one can make a fortune shorting their native tokens.
Why hasn't USDN collapsed yet? It depegged at the same time as UST during the panic, but unlike the UST, it has regained the peg to some extent and remains only 2.5% below target. And yet I don't see why it should not follow the same fate as UST, since as far as I understand: - It is backed by WAVES, which has a lower marketcap than USDN, so it is not essentially not backed. - They advertise the same kind of ponzi 15% interest rate on staking What's going on with this coin?
Well, I'm far to have all the knowledge but it looks like a circular economy. When you buy the NBST to the protocol, you buy it with Waves. But you can't sell it for Waves (unless you're on an exchange), they buy it back with USDN. I guess they had an initial Waves reserve, and they keeping it going through that circular mechanic and maybe some others. The scheme looks like: Sell Waves for NBST -> stake NSBT for gNSBT for a long period -> Buy USDN -> Swap USDN for Waves at premium (if USDN is unpeg, and so the USDN are back in the dApp) -> Sell back your Waves on exchange for profit or buy more NBST/USDN -> Story repeat
Well that's pretty much untrue. The USDN isn't tied directly by Waves, but NBST. It kinda work this way: 1. You buy NBST and stake it for a long period. The unstaking fees are very high if you unstake early ([https://app.neutrino.at/stake-nsbt](https://app.neutrino.at/stake-nsbt)). You are given gNSBT. 2. gNSBT allow you to swap a limited amount of USDN for Waves at a premium price if the USDN is below $1 (https://app.neutrino.at/swap). Eg: If 1 Waves = $10 and USDN = $0.95, you can buy Waves for $9.5 (approx) because you have gNSBT. 3. Then you sell your Waves for USDN and make 5% on the trade. You can do it on a daily basis, the amount depend of the NSBT you're staking. It's just an easy version to understand how it works. NBST stakers makes huge profits when USDN depeg. Unlike Luna, no Waves and no NBST are printed to keep the USDN price stable. If USDN fail, so yes, Waves will take a panic hit. But unlike LUNA, no WAVES will be printed to maintain the price. USDN is a separate dApp.
In your first sentence, you said "obviously things can go wrong as we've seen". In your second sentence, you ask me why this is 100% risk. Go buy USDN now. 3% profit waiting for you. https://www.coingecko.com/en/coins/neutrino-usd/usd
It's at .95, that's basically stable for USDN lmao. But for real, the reason for WAVES price dive since April was an exploit that originally de-pegged USDN for a little, but it was able to recover. Only time will tell but I disagree that the next domino has "started to fall."
Haven't messed with leverage in a long time but decided to open a short against WAVES last night after discovering their stablecoin (USDN) isn't currently pegged and has actually dipped to 80 cent *twice* in the last month My play was only 100 bucks but currently sat on 250, just gonna let it ride in case of a total collapse
Ok... Since I'm wrong on the analysis that I'm making, can you explain how is USDD different than UST? And just so you don't think that this is about Tron, cause it isn't, USDN/WAVE seems to be the same concept of algorithmic stable. This is more about trying to find any stable that supports its foundation on the same fundamentals of Luna/UST that we all know it's now a failed project.
They need to decouple the network securing asset (LUNA) from the volatile spec asset (UST). That was the fatal flaw. The network should still exist, even if UST got destroyed. There are other networks with simliar setups, WAVES and USDN for example, its just a matter of time before someone bludgeons it to death like they did with LUNA.
USDN (another unbacked stablecoin offering 15% guaranteed APY) is depegging right now and bringing Waves down with it. Waves is currently offering 63.7% 'low risk' returns on USDT, so it's guaranteed to be a classical Ponzi scheme in the first place.