A new stablecoin will allegedly help to restore the value of USDN.
Sasha Ivanov, the founder and Chief Executive Officer (CEO) of decentralized blockchain Waves, has revealed his plans to launch a new stablecoin.
The news comes after Waves-backed stablecoin Neutrino USD (USDN) experienced multiple price crashes in 2022 and continues to go downhill until this day.
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According to the tweet shared by Ivanov on December 20th, the CEO has two goals, to launch a new stablecoin and issue a “USDN situation resolution plan.”
In a separate tweet, responding to a Twitter user dubbed chem, Ivanov stated that the new stablecoin will be launched only when “USDN plan resolution is set in motion.” Nevertheless, in response to another Twitter user, Waves CEO claimed that the new stablecoin will be “undepeggable.”
In the interviews, Ivanov claimed that the new stablecoin will be formulated based on a decentralized autonomous organization (DAO) model and will be a "hybrid between an algorithmic stablecoin."
When asked why the USDN stablecoin is struggling, the Waves CEO stated that it is simply not adopted to survive current market conditions. Moreover, Ivanov believes that to ensure the success of stablecoin, more robust models should be launched, calling USDN "incentives-based stablecoin.”
Unfortunately incentive-based models do not account for black swan events, they work in 99.9% of market conditions but are not able to withstand very heavy market volatility.
Despite USDN’s struggles in the current market turmoil, Waves is reportedly not considering to possibility of abandoning the stablecoin. On the contrary, Waves CEO believes that the new stablecoin will help to restore USDN value.
USDN will not be completely phased out, we’re absolutely committed to stabilizing USDN and the new stablecoin should actually help USDN to restore its value.
USDN struggled to maintain a 1:1 peg for the whole of 2022. However, the most significant crash happened in April, when the USDN price fell to $0.8. At the time of writing, USDN retails for $0.497, recording a 9.83% price decrease in the last 24 hours.
