Sasha Ivanov, founder and CEO of Waves blockchain platform, is planning to launch a new stablecoin amid the ongoing crisis of Waves-backed Neutrino USD (USDN).
Ivanov posted on Twitter on Dec. 20 toannounceUSDN’s Plan to Solve the Situation Alongside a New Stablecoin Project
“We will launch a new stablecoin,” the Waves founder wrote, adding that there will be “USDN Situation Correction Plan” by himrepeatthat no new releases or announcements will be made until a USDN resolution plan can be established
The new stablecoin will be an “algorithmic stablecoin hybrid” and will be based on cryptocurrencies. It is a decentralized autonomous organization. “It will be implemented using Waves’ native method and cannot be deployed on any other chain,” he said.
Ivanov said that one of the main reasons for the problems with USDN is that the current USDN model is inconsistent with current market conditions. He added that a stronger model should be developed, referring to USDN as an “incentive stablecoin.”
“Unfortunately, incentive models do not take black swan events into account and they cannot withstand extreme market volatility.”
Although USDN is not perfect, Waves does not plan to abandon it. We are deeply committed to stabilizing USDN and the new stablecoin should help USDN recover its value,” said Ivanov. Overcollateralization and adaptive algorithms help create “un-depeg assets”.
Current USDN have$ value0.51 According to CoinGecko,
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