Another Stablecoin approaching UST’s market cap is the Waves Stablecoin Neutrino USD (USDN), which currently has an MCAP of $830 million, security team CertiK Alert tweeted. USDN has been in a volatile state since April.
USDN, which traded from $0.74 to $0.92 on Thursday, has broken its anchor. USDN fell as low as 59 cents on April 4 after users accused the platform of manipulating the price of WAVES through its lending platform Vires.finance.
The Waves CEO has denied the allegations. Users must lock WAVES tokens into Neutrino’s smart contracts in order to earn USDN. Redemption destroys the Stablecoin to unlock WAVES, which balances the supply and keeps the Stablecoin pegged. Currently Curve USDN-3 Pool is unbalanced, 93.8% is USDN. The same ratio also appears in UST’s Curve pool. This is usually a sign that the peg is under pressure and new deposits are needed to restore balance. Be aware of the risks.
