While the crypto market is showing signs of a bull run, algorithmic stablecoin Neutrino (USDN) dropped once again after a new update was implemented on the protocol.
According to the CoinMarketcap data, USDN fell from $0.98 to $0.91 by 6.5%.
However, the downwards moment has been showing since April, when USDN lost its peg and fell below $0.80 after losing its peg with the dollar. This is the first crash into the USDN peg with USD after upgrading the network.
Upgrade #8 was decided through a governance vote.The team presented the community with 4 alternative upgrade scenarios, with the choice of one being decided by the majority of votes. Three of these updates have been welcomed by the community.
With the majority of votes put in favor of update #8 to “implement new swap mechanics, so that Max Swap Amount of USDN>WAVES swaps will depend on the current BR value.”
The update is intended to increase the maximum allowable amount of $USDN that can be swapped into $WAVES, in regards to its backing ratio (BR). USDN is backed by $WAVES tokens staked in the smart contract.
Apart from this, the community also approved another update to “implement new BR protection mechanics, so that BR cannot go lower than 10%.” This update is to implement immediate measures to stabilize the protocol and ensure the security of its reserves.
The last update for gNSBT rewards distribution between SURF and NSBT stakers was also approved.
Unluckily, these updates seem to have failed as even after implementations no bounce back has been seen in $USDN.
