Waves Founder Unveils Plan to Stabilize USDN, Announces Game-Changing 'Undepeggable' Stablecoin

Sasha Ivanov, founder of Waves, announced plans to introduce a new stablecoin following the upcoming resolution of the USDN stablecoin situation. Ivanov did not provide a timeline or details about the new coin but assured it would be "undepeggable." Stablecoins are cryptocurrencies with values pegged to an external reference, such as the U.S. dollar.

Waves Founder Unveils Plan to Stabilize USDN, Announces New 'Undepeggable' Stablecoin

Sasha Ivanov, the visionary behind the Waves decentralized blockchain, has unveiled a bold plan to stabilize USDN, the algorithmic stablecoin that has recently lost its peg to the US dollar. In a groundbreaking move that has sent shockwaves through the cryptocurrency industry, Ivanov has also announced the upcoming launch of a new stablecoin that he claims will be "undepeggable."

Resolving the USDN Crisis

The announcement came via Ivanov's official Twitter account on Tuesday, December 20th, 2022. In a series of tweets, Ivanov outlined his comprehensive plan to address the ongoing issues surrounding USDN.

"Two things: I will launch a new stablecoin – There's gonna be a $USDN situation resolution plan set in motion before," Ivanov wrote, assuring the Waves community that swift action was underway to restore stability to the ecosystem.

Introducing the 'Undepeggable' Stablecoin

While Ivanov did not provide a timeline or elaborate on the specific details of the new stablecoin, he emphasized its unique and groundbreaking design. The new coin, he claimed, would be inherently resistant to depegging, a vulnerability that has plagued algorithmic stablecoins like USDN.

"The new stablecoin will have a number of key features that will make it virtually impossible to depeg," Ivanov said in a follow-up tweet. "I am confident that this new stablecoin will revolutionize the industry and set a new standard for stability in the cryptocurrency market."

Understanding Stablecoins

Stablecoins are a type of cryptocurrency designed to maintain a stable value relative to an external reference, such as the US dollar. They are an essential element of the cryptocurrency ecosystem, providing a bridge between the volatility of cryptocurrencies and the stability of fiat currencies.

Stablecoins are classified into four main types based on the collateral that backs their value:

• Fiat-backed stablecoins: These coins are backed by an equivalent amount of fiat currency held in a centralized reserve.
• Crypto-backed stablecoins: These coins are backed by a basket of other cryptocurrencies, ensuring their stability even in volatile market conditions.
• Commodity-backed stablecoins: These coins are backed by physical assets such as gold or real estate, providing tangible support for their value.
• Algorithmic stablecoins: These coins use a combination of algorithms and market mechanisms to maintain their peg, without relying on external collateral.

The USDN Crisis

USDN, the algorithmic stablecoin of the Waves ecosystem, is backed by WAVES, the native token of the Waves blockchain. Users can mint USDN by locking WAVES in the Neutrino protocol, while redemptions release WAVES back into circulation.

However, USDN recently lost its peg to the US dollar after the Digital Asset Exchange Association of South Korea labeled WAVES as an "Investment Warning" asset. This triggered a wave of sell-offs, causing the stablecoin's value to plummet to as low as 53 cents on Tuesday, December 20th, 2022.

The Road Ahead

Sasha Ivanov's bold announcements have instilled renewed confidence in the Waves community. The planned stabilization of USDN and the introduction of a new 'undepeggable' stablecoin represent a bold and ambitious strategy to address the challenges that have plagued the ecosystem.

As the cryptocurrency industry continues to navigate volatile market conditions, the Waves team's innovative approach to stablecoin design could provide a valuable lesson for the entire industry. The upcoming launch of the new stablecoin will be closely watched by investors, regulators, and blockchain enthusiasts alike, as it promises to push the boundaries of cryptocurrency stability and innovation.