Luna & UST nightmare repeat on Waves & USDN?

After being red flagged by the Federation of Korean Exchanges 🇰🇷 considered to cancel transactions on exchanges. $Waves price dropped 20% after that.




Waves' USDN is similar to LUNA's UST, Waves is the collateral for USDN, uses Waves to mint USDN, and uses USDN to stake
But there are some other points in USDN's protocol as follows:


👉Luna used to insert UST will be burned, and Waves used to mint USDN will be locked in smart-contract. Therefore, after inserting the UST, there are no more assets to backup, so the UST is Depeg very quickly.


👉The interest to pay for UST's interest on Anchor comes from Luna's Treasury and USDN's income comes from Waves' LPos (Transaction Fee) mechanism. This is very important because Waves' Treasury will not be pressured to pay interest like Luna's.

👉The protocol will have NSBT which is a refinancing and governance token of the Neutrino protocol. This token is used to ensure the stability of USDN collateral reserves, which have a daily limit on the number of WAVES/USDN they can swap.

With the above differences, it also partly shows that the USDN minting will be controlled and limited, not like the endless loop of Luna & UST.

Even so, USDN has always been Depeg below the $ 1 mark so far, showing that the inefficiency of the platform is very large despite its launch in 2020, but so far USDN has not had many Usecases other than Staking receiving profits from Protocols.


It can be seen that the model of USDN is different from that of the UST, but its efficiency and application are still nothing special. It is recommended that people do not wire this child to avoid the risk as much as possible.

The exchanges are also considering this Delist USDN at the same time, so you should be careful.




In response to the news, Fud Waves announced: $WAVES has no intrinsic connection to USDN

On December 9, Waves released a statement on its official website regarding the investigation of the WAVES token by the Korea Digital Asset Exchange Association (DAXA).

This statement concerns Upbit and Bithumb believes that the price of WAVES may become volatile due to USDN, but USDN is an independent project built on the Waves blockchain, and while using WAVES as collateral Disagree, it has nothing to do with WAVES.

WAVES states:  "For these reasons, Waves believes that concerns about the price volatility of WAVES are unfounded misinformation. Waves representatives are in contact with the Upbit and Bithumb teams and will continue to work to clarify the matter".

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Benjamin Thomas
Benjamin Thomas

Researcher - Content Creator | Black Mamba Ventures

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