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The ticker of the algorithmic stablecoin USDN, which lost parity against the US dollar back in August 2022, has been changed to the Neutrino Index (XTN). Sasha Ivanov, CEO and founder of the Waves Platform, announced this.
$USDN is phased out as a stable coin, asset name has been changed. Moving on. pic.twitter.com/kLmZME5KZJ
— Sasha.waves (@sasha35625) January 31, 2023
“USDN is being phased out as a stablecoin, the name of the asset has been changed. Let’s move on,” he wrote.
According to the protocol’s Twitter account Neutrino, the decision to rename was approved by the community. The process will be carried out using a transaction of type Update Asset Info.
⚡️USDN>XTN: Step One⚡️
This February, USDN will be rebranded to Neutrino Index (XTN) according to the community approved plan.https://t.co/6ntQsAnc8Z
We are starting the process today by renaming the token in Waves blockchain by means of the Update Asset Info transaction. pic.twitter.com/v4HMu7Z6w3
— Neutrino Protocol 🌊 (1 ➝ 2)🏄🏻♂️ (@neutrino_proto) January 31, 2023
The developers assured that the update “will not affect exchanges, aggregators of token statistics and their APIthat will continue to use the existing USDN ticker.”
“This means your wallets will still display USDN. However, it will gradually be renamed to XTN everywhere,” they noted.
In a blog post, the Waves team revealed the reasons behind the move to another ticker and the nature of the new token. According to them, the current USDN setup “cannot withstand the unprecedented market volatility.” Nevertheless, in order to preserve the value of the algostablecoin for the Waves platform, a decision was made to switch “to a different model”.
XTN will be backed by a basket of tokens from the Waves ecosystem without a USD peg. The value of an asset will change based on supply and demand and indirectly based on the Support Ratio (BR).
“BR is the total value of all pledged assets relative to the value of the negotiable offer. XTN will aim for 100% BR and the price will go towards $1. This provides greater stability compared to a single-collateral stablecoin, since the cost is not tied to the performance of a single asset,” the developers specified.
Issued to recapitalize USDN reserves, the SURF token will retain its function and provide buyers with an arbitrage opportunity.
“10% of reserves will be automatically converted from SURF to XTN when BR reaches 115%. At the same time, 10% of the reserves are used to pay users, ”the blog says.
According to the roadmap given by the developers, a complete rebranding of USDN to XTN will take place before mid-February.
By the end of April, tokens worth $15 million will be added to the ecosystem as collateral through a community vote.
In a comment to ForkLog, Sasha Ivanov said that the ticker change will be part of the rebranding of the platform and will better match the new functionality.
“Neutrino turns into Multi-Collateral Index Asset. The rebranding is necessary due to the new nature of the token, as there are no more guarantees of a hard price peg. Many centralized exchanges insisted on this,” he said.
Ivanov also assured that the update will not affect users who have savings in USDN:
“This is done to ensure that users do not suffer financial losses.”
According to CoinGecko, XTN is priced at $0.3 at the time of writing.
Recall that at the end of 2022, Waves CEO announced his intention to update the blockchain of his project to version 2.0 in 2023.
Prior to this, Ivanov announced the release of a new stablecoin, the prospects of which raised doubts among users. The platform developers also presented a USDN recapitalization plan.
Against this background, Waves DEX users have reported ongoing problems with the withdrawal of USDT and USDC from the internal network protocol for a month.
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