Neutrino $USDN lost its peg for the first time since June 16th. Has been updated Implement an upgrade to the protocol. Confirmation of the upgrade was announced at 4 p.m. Thursday, hours after the peg dropped from $0.98 to $0.96.
At press time, the stablecoin has fallen further to $0.94, marking a 4% drop on the day. $USDN fell further in April, falling to $0.78 before he surged to $0.98 within days.
Update #8 was determined by a governance vote that included four proposals. The winning submissions were announced via Neutrino’s official Twitter account.
Implemented changes from last poll.
✅USDN>WAVES Maximum swap amount depends on current BR. WAVES>USDN maximum swap amount remains unchanged
✅Added BR protection
✅ Improved gNSBT reward distribution between SURF and NSBT stakers
Enjoy 😎 pic.twitter.com/O4e94VfG4U
— Neutrino Protocol 🌊 (1 ➝ 2)🏄🏻♂️ (@neutrino_proto) August 24, 2022
A vote passed the update “Implement a new swap mechanism so that the maximum swap amount for USDN>WAVES swaps depends on the current BR value.” This update increases the maximum allowed amount of $USDN that can be swapped to $WAVES depending on the currency. approval rating (BR.) BR is the share of $WAVES tokens to the $USDN supply.
Another vote to “increase protocol fees for USDN>WAVES swaps” was rejected by the community, with 62% voting “no”.
The community has passed a third proposal to “implement a new BR protection mechanism to prevent BR from going below 10%”. The update could be part of the “immediate measures” needed to “stabilize the protocol and ensure the security of its reserves.”
Adding protection to the backing ratio to keep it from going outside the set range is part of the strategy to protect the peg. But given that the stablecoin has yet to recover from its 4% drop, we have to question the effectiveness of the update.
The final proposal was also passed with a 95% majority, correcting the reward distribution of gNSBT staking tokens. Previously, a $SURF token holder only received 2% of his reward. The proposal increases this based on specific market conditions.
It’s been less than 24 hours since the update was published. Therefore, it may take some time for the update to affect your network. CryptoSlate chatted with Waves founder Sasha Ivanov last week to speak directly about the strategies used to defend the peg.
In an interview, Ivanov said he believes the peg will remain relatively stable over the next few months before returning to $1. However, he did not rule out the possibility of occasional volatility.
watch the full interview here.
CryptoSlate awaits comments from the Waves team.