Waves’ Founder Is Carrying $500 Million Debt To Prevent USDN Depeg

By including six overextended USDN loans into his wallet, Sasha Ivanov, the creator of the Waves blockchain network and the Neutrino (USDN) stablecoins, has discovered a creative way to deal with the liquidity situation.

Ivanov pledged to pay off the loan over time without letting the value of the coin drop. The Waves inventor currently owes more than $530 million. Over the past month, Ivanov has steadily wasted the USD in his wallet.

Waves – Getting the debt repaid

Although there has been some indication of confidence in the debt’s repayment, lenders trying to remove assets are constrained and face severe competition for any available liquidity. The debt’s ability to be repaid is contested by some.

Voting on the proposal took place on May 31 among holders of Vires tokens. Although customers have had trouble withdrawing any money, Vires has imposed a daily withdrawal cap of $1,000 Coin (USDC) or Tether (USDT) per user. The corporation periodically provides Vires with more money, which is promptly removed.

Prices of cryptocurrencies are falling

The USDN defied predictions that it was set to crash after de-pegging multiple times during the decrease in bitcoin prices. Vires’ debt reduction and withdrawal limitations have made it possible for USDN to restore its $1 peg and avoid a death spiral similar to that of the UST.

Due to the debt’s daily interest accrual of more than $500,000, Ivanov must pay additional interest on top of the principal. Ivanov will find a way out even though the business is still complicated.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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