The Community Rejected a Second Vote
Since June 16, Neutrino, USDN has maintained its peg. However, a modification to the protocol caused it to lose it for the first time. On Thursday, several hours after the peg dropped from 0.98 USD to 0.96 USD, the update was officially announced. At the time of publication, the stablecoin has dropped to 0.94 USD, a 4% daily decrease. In April, USDN plummeted even further, to 0.78 USD before rising back to 0.98 USD within a matter of days.
According to the backing ratio, the upgrade raised the maximum value of USDN that may be exchanged for WAVES (BR.) The percentage of WAVES tokens in relation to the supply of USDN is known as the BR. The community rejected a second vote to increase protocol cost for exchanges with 62% voting. A third request to install new BR protection techniques, such that BR cannot go lower than 10% was approved by the community. The urgent actions necessary to stabilize the protocol and safeguard the security of its reserves most likely include this upgrade.
It Takes some time for the Modifications to Take Effect
Part of the plan to defend the peg involves adding protection to the backing ratio to make sure it can never go outside of a predetermined range. The usefulness of the upgrade, however, may be questioned considering that the stablecoin has not recovered from its 4% decline. A last proposal that changed the rewards for the staked tokens was also approved with a huge majority of 95%. Holders of SURF tokens previously only earned 2% of rewards. the plan would boost this percentage dependent on certain market circumstances.
Less than 24 hours have passed since the upgrade went live, thus it can take some time for the modifications to take effect on the network. Last week, Sasha Ivanov, the inventor of Waves discussed the tactics employed to protect the peg. Ivanov asserted in the interview that he thought the peg will be largely steady over the ensuing months before being reset to 1 USD. He left open the possibility of sporadic episodes of instability, though.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.