Waves: USDN uses WAVES as collateral, but there is no intrinsic connection to the WAVES token

2022-12-09 13:49:53

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ChainCatcher news, regarding the algorithmic stablecoin Neutrino USD (USDN) depegging and being flagged for risk by Upbit and Bithumb, the public chain Waves responded that USDN is an independent project built on the Waves blockchain, using WAVES as collateral, but has no intrinsic connection to the WAVES token. The only way USDN directly affects the price of WAVES is by redeeming WAVES from the contract and selling WAVES on the market.

Waves stated that only 4.2% of the total supply of WAVES is held in the Neutrino smart contract, which is equivalent to 9.8% of the daily trading volume across all exchanges. USDN has no role in the issuance of WAVES and does not increase the supply of WAVES. Due to Neutrino's daily redemption limits and support rate protection, it is impossible to exhaust all reserves. (Source link)

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