USN, a death on borrowed time – Since the cataclysm caused by the Terra UST stablecoin (LUNA)the whole cryptosphere monitors the stablecoins with a worried eye. Especially if it is stablecoin algorithmic. The latest concern in the field comes from the stablecoin USN proposed by Decentralized Bank (DCB). The risks are such that the NEAR Foundation will take a large sum out of his pocket to stabilize the situation.
NEAR Foundation raises $40 million to save USN soldier
Nothing is going well for the stablecoin USN. The project team, Decentralized Bankadmitted that his stablecoin became under-collateralized. Indeed, as a publication of the NEAR Foundation as of October 24, 2022, this stablecoin would have accumulated a collateral deficit of no less than 40 million dollars.
Although the USN and DCB have no no direct link with the NEAR project – other than choosing this blockchain to issue their stablecoin -, the Foundation has nevertheless announced that it will be ready to cover their warranty issue. She has indeed unlocked a grant $40 million for manage end of life du stablecoin USN.
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A one-year reprieve to liquidate this lame stablecoin
Indeed, an exchange program (called “protective program”) has been put in place to gradually replace the USNs by USDT.e (USDT of Tether wrapped from Ethereum on NEAR). This at the rate of 1 pour 1. The ultimate goal is to end to this stablecoin project, which is clearly too flawed.
“Given the problems [de l’USN], the NEAR Foundation recommends that DCB proceed with its orderly liquidation. (…) Buybacks [USN vers USDT.e] will begin as soon as DCB has taken certain steps to ensure an orderly liquidation. This program will be available for one year (until October 24, 2023). (…)”
At the time of this writing, no stall really significant of the USN against the US dollar was to be noted (1 USN for 0.998 dollar). The action of la NEAR Foundation seems to have fallen down to avoid any panicwhose effects we have previously seen with Terra’s UST.
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