On the Waves Tech weekly community AMA on Dec. 23, Waves CEO Sashi Ivanov revealed the USDN revival plan, involving turning USDN into a multi-collateralized asset, a soft-pegged asset — WINDX.
This move will transform USDN into a “soft-peg” stablecoin, meaning that it will fluctuate around the value of $1, potentially a little higher or lower.
Despite the changes to USDN, current trading pairs and pools will remain active, even though USDN will no longer be a hard-pegged stablecoin.
Redemptions, bad debt, WINDX
SURF issuers can redeem USDN into this new asset, with incentives in place for people to issue it after the initial “bootstrapping” stage. In addition, the new asset will exist in perpetuity and can be used as a reserve asset.
The plan also involves transitioning to a new stablecoin, Neutrino 2.0, once the bad debt on Vires has been liquidated. This new stablecoin will use a mixture of algorithmic and DAO-governed approaches to keep its peg stable. The aim is to make USDT and USDC holders whole by resolving bad debt on Vires.
Ivanov explained that the goal is to liquidate smaller accounts on Vires within the next few months and launch a new generation of decentralized WAVES gateways in January.
Ultimately, the aim is to turn USDN into a reserve asset that maintains a soft peg around the value of $1 while also resolving issues with Vires and launching a new stablecoin in the future.
Fighting the FUD
Questioned on the ongoing situation with Upbit, Ivanov said that delisting WAVES is unlikely to have much impact on Waves but “will hurt [Upbit] users.”
Despite the ongoing uncertainty surrounding Waves, Ivanov remained optimistic and said:
“We won’t let [FUD] break us.”