Vires.Finance to be “reset” following Waves revival plan proposal to solve liquidity crisis
In April 2022, many called Waves a “Ponzi scheme” as the leading blockchain stablecoin. USDN he lost the peg to $0.81. The algorithmic stablecoin lost its peg weeks before the now infamous Terra USD depeg event. However, the Waves chain is much better than the currently titled Terra Classic chain.
At the time of writing, USDN is still far from the designed $1 peg, trading at around $0.47. USDN’s inability to regain pegging is linked to ‘user-operated banks’ on lending platforms Vires. Finance.
The resulting liquidity crisis for Vires.Finance prompted Waves to ask its community to determine recovery plans in a truly decentralized manner. A Waves statement reveals the results of the WAVPR001 governance proposal.
“The majority of that community now fully supports a new proposal to ‘reset’ the lending protocol, returning over $500 million in lost funds to Vires.Finance users. ”
Waves founder Sasha Ivanov has moved his wallet around $500 million worth of bad debt into his wallet, claiming he will gradually pay off the debt by liquidating USDN. However, recently approved governance proposals give investors a choice.
Investors with more than $250,000 in USDT or USDC have two options.
- Exchange tokens for USDN with 365 vesting period and 5% “liquidation bonus”.
- Stay in Vires.Finance with 0% APY and get paid back as Ivanov liquidates USDN over time.
A Waves statement said, “Crypto Its main strengths lie in its community, transparency and decentralized governance. ” Regarding the announcement, IVanoff commented:
“In the ongoing crypto winter, it is imperative to remember and emphasize the core values of decentralization, immutability, freedom from institutional greed and inclusivity that underpin the blockchain sector.”
However, while the proposal may have passed, some parts of the community are reluctant to trust Vires.Finance. Mr. Ch0c even called the proposal a “fraud.”
This offer is a complete scam@sasha35625 Basically allowing to steal borrowed USDT/C and hand over depegged asshole USDN to the lender
365-day vesting to protect the USD peg 🤣See comments, no one agrees with this scam:https://t.co/Xy2TrLN2gy $waves pic.twitter.com/WypD9ygnK9
— Mr. Ch0c (@Mister_Ch0c) July 26, 2022
In the Vires.Finance forum comments, support for this proposal is certainly not unanimous. One user wrote, “Joke us defending thieves,” but much of the discussion fell on school name-calling rather than constructive discussion on the merits of the proposal.
