Approximately 14 days ago, the stablecoin neutrino usd (USDN) tapped a high of $0.994 per unit, and ever since then, USDN has not been able to rise above the $0.97 per unit range. The dollar-pegged asset is associated with the Waves blockchain protocol, and recently the Neutrino Protocol decided to add a token called SURF to USDN’s reserve basket in order to “improve the mechanics of recapitalizing USDN reserves.”
Waves Stablecoin USDN Faults, Team Algorithm Adds SURF to Improve Stablecoin’s Reserve Mechanics, Waves Founder Rejects Critics
Another stablecoin has shown divergence from the US dollar parity, as the USDN tapped a low of $0.94 per unit on September 5, 2022. Data from Coingecko.com shows that the neutrino USD fell even lower the day before, slipping to $0.918 per coin. The 30-day metrics show that USDN fell to $0.905 on August 26. This is not the first time USDN has deviated from $1 parity. Year-to-date, the neutrino USD has seen three more significant declines below the $1 price mark, prior to the August 26 lows.
Prior to August 26, on July 14, USDN’s price dropped to $0.938 per token and on May 11, USDN slipped to $0.824 per coin. On April 4, neutrino usd dropped even lower than the losses recorded on May 11, as USDN dropped to $0.787 per coin that day. In more recent times, the Neutrino Protocol added a token called SURF (Smart Utility Recapitalization Feature) to USDN’s basket of reserves. There are now four different tokens leveraged for USDN reserves as SURF joins the USDN stablecoin, NSBT, and WAVES.
The Neutrino Protocol describes itself as “an algorithmic value-stable assetization protocol that acts as an accessible DeFi toolkit”. The team believes that SURF will improve USDN’s backing ratio (BR) by achieving “BR Balance” and provide additional incentives for the community and investors. Some crypto supporters have Told Waves developers are creating ways to make USDN “unpageable” and SURF is a solution to that effort. Adding surf to the USDN reserve mix scrutiny and criticism Too.
Some individuals have said Waves is a Ponzi scheme and USDN has been compared to Terra’s UST. However, Waves founder Sasha Ivanov discussed the criticism with Coindesk on August 31 and he dismissed the comparison of USDN to Terra’s UST. “UST was backed by nothing – LUNA [the token] was burned to create UST. It was never intended to be backed up by anything other than the algorithm,” Ivanov told the reporter. “The opposite is true of USDN. WAVES tokens are held in a smart contract to collateralize USDN.”
