By George Ward
The CEO and founder of Waves blockchain company, Sasha Ivanov, wants to release another stablecoin. This news comes amid the ongoing crisis with the USDN, a Waves-backed stablecoin.
Waves To Launch Another Stablecoin
The company’s CEO announced a resolution plan for the USDN de-pegging. Also, he talked about a new stablecoin initiative the blockchain firm is working on.
According to Ivanov, the company would launch a resolution plan for the USDN stablecoin before launching the new stablecoin. “The USDN plan would have to be in motion first before we release the new stablecoin,” Ivanov stated.
Additionally, Ivanov assured users that the new stablecoin would be “undepeggable.” He further said the stablecoin would employ a DAO and algorithmic stablecoin model.
The CEO said the company would implement the stablecoin using a native Waves approach. Hence, the stablecoin cannot be run on other blockchains.
Meanwhile, he added that one major reason the USDN crashed is its model is not in line with the present market situation. Hence, the firm is working on developing more models.
Ivanov referred to USDN as an incentive-based stablecoin. Unfortunately, such stablecoins cannot stand high market volatility. Despite the imperfections of the USDN, the firm is not willing to abandon it.
According to Ivanov, the company will not completely wipe out the stablecoin but will work to stabilize it.
USDN Lost Its Peg Several Times In 2022
The founder of Waves believes that the new stablecoin will help restore the price of the USDN. According to him, adaptive algorithms and over-collateralization will help to develop “un-depeggable assets.”
Even though the USDN is an algorithmic stablecoin, it has struggled to hold its 1:1 peg in the past months. It is collateralized by Waves and anchored to the USD
Moreover, the stablecoin lost its peg several times in 2022. The first de-pegging occurred in April as the stablecoin crashed to $0.8. The latest crash pushed the stablecoin’s price to $0.53.
Meanwhile, this news comes as the WAVES token’s price plummets after a new regulatory warning. On December 8th, South Korea’s exchange authority, DAXA (the Digital Asset eXchange Alliance), warned users about investing in the token.
According to on-chain data, WAVES’ price has dropped by over 30% since the warning. In addition, the Waves blockchain team alleged that some CEX were spreading misinformation about the token, which now affects its price.