News

Decentral Bank DAO Stops Using NEAR As Collateral For USN

Decentral Bank, the DAO established to develop stablecoins on the Near Protocol ecosystem, said it has paused using NEAR for USN generation due to current market uncertainties.

Decentral Bank DAO is concerned about the market sell-off

USN developers officially announced the v2.0 version yesterday, intending to create a stablecoin that is truly stable and can “survive” the crypto winter.

Accordingly, USN v2.0 will move to a more flexible model and be implemented in two phases. The transition will be determined through DAO votes.

Phase 1: USN will be backed 1:1 with USDT. That is, 1 locked USDT will mint (create) 1 USN, and vice versa, 1 USN can be converted to 1 USDT. Profit will be generated from NEAR staking.

Phase 2: USN will be collateralized with non-stablecoin assets, starting with NEAR.

Overview of USN v1.0 and USN v2.0

USN is an algorithmic stablecoin with a 1:1 anchoring mechanism similar to the Terra ecosystem’s UST coin, meaning that to mint 1 USN, you need 1 USD worth of NEAR.

“Since it is impossible to predict how the market will move and if selling pressure continues, there is a high probability that USN will not be sustainable as NEAR will also follow the general situation.”

A representative of Decentral BANK DAO said in a statement

The recent market downturn has proven that current stablecoins have difficulty withstanding the pressures of the current crises.

Therefore, in addition to the newly updated version, Decentral Bank DAO also said it plans to add several popular stablecoins as essential collateral for USN, including USDT, USDC, and DAI. This strategy will make stablecoins more likely to “recover” should the market turn bad again.

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.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News

Victor

Recent Posts

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

15 minutes ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

40 minutes ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

2 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

4 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

4 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

4 hours ago

This website uses cookies.