Waves CEO and founder Sasha Ivanov promised days after USDN lost its peg with USD that his new stablecoin would be “undependable.”
In Brief,
- A new stablecoin will be issued by Waves founder Sasha Ivanov after Neutrino USD (USDN) is stabilized.
- Recent falls have caused USDN to fall below $0.60, indicating difficulties maintaining the peg to the US dollar.
- It is part of a protocol that Ivanov described as more market-oriented.
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A new stablecoin is planned for launch by Sasha Ivanov, the founder, and CEO of Waves. It will be backed by Waves and battle Neutrino USD (USDN).
The USDN situation resolution plan, along with a new stablecoin project, was announced on Dec. 20 by Ivanov on Twitter.
Waves founder wrote, “I will launch a new stablecoin which will be going to be recognized by the name of USDN.” He also said, “we will not announce anything until USDN is implemented.” He also swore that USDN would be “undependable.”
Sasha Ivanov shared with some journalists that USDN stable coin will be based on a “decentralized autonomous organization model” and a hybrid between algorithmic stablecoin.
He documented that Waves cannot implement this approach on any other chain since it is native to Waves and added that it crashed because of the unsettled current USDN model.
He said, “sadly, black swan events aren’t considered in incentive-based models. They work in 99.9% market conditions but cannot resist heavy market volatility.”
The stablecoin will not be dumped regardless of USDN’s imperfections. “There will be no phase-out of USDN, we intend to keep USDN stable, and USDN will gain value from the new stablecoin,” Ivanov said.
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According to the CEO, over-collateralization and adaptive algorithms must contribute to creating “unreliable assets.”