Near Foundation will stop supporting USN stablecoin
Near Foundation Stableco -Wasn project will stop working due to multiple risks, including insufficient asset support.
In Response to A Recent Issue with USN, The @NEARFUNDATION IS FUNDING APROGRAMME to SAFEGUARD USN HOLDERS.
More Details Below 👇 https: // t.CO/NDMZUO2WIM
– Near Protocol | Create Without Limits (@nearprotocol) October 24, 2022
The launch of a “stable coin” from the platform competing with Ethereum took place in April. The operator of the crypto acting was the decentralized autonomous organization of the Decentral Bank.
Initially, the price of stablecoin was supported by arbitration operations and a reserve fund from NEAR and USDT. The launch of USN coincided with an unfavorable market conjuncture, in particular with the collapse of the Terra ecosystem.
According to Near Foundation, the asset has recently become insufficiently secured.
“Decentral Bank confirmed that this happened due to the originally algorithmic https://gagarin.news/news/celsius-network-accused-of-bizarre-behavior/ version of the USN (V1). After the June upgrade to the second version, it ceased to be algorithmic, but turned out to be at risk of insufficient support under extreme market conditions, ”the blog of a non -profit organization says.
Later, Decentral Bank also published a post on the “gradual termination of the project”.
A message to the comunity: $ USN Wind-Down
TLDR; $ USN Is Gradully Winding Down. The Contract Will BE Accessible Indefinitely, With Only Minting Disabled. $ USN is Safely RedeMable 1: 1 For $ USDT Through A $ 40M Protection Program.
As part of the USn Protection Program, $ 40 million is allocated, which will make it possible for users to exchange a NEAR on USDT and other assets during the year.
“Over the past few months, USN has encountered many obstacles against the background of increased attention from the regulators and changes in the perception of the market due to recent high-profile incidents,” said representatives of the Decentral Bank.
The schedule below illustrates the relative stability of the stabilcoin course from the moment of its launch.
Recall that in September Near Foundation launched a fund of $ 100 million with a focus on Web3.
In the same month, Tether Operations Limited has released a USDT stablecoin on the NEAR network.
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