Neutrino, the algorithmic value-stable assetization protocol, serves as an accessible DeFi toolkit. It was built on top of the Waves blockchain and managed to nearly double its market cap in less than a month.
However, the protocol’s stablecoin project – USDN – became de-pegged after hitting a low of $0.83 and down 15% over the past 24 hours. The stablecoin-backed token WAVES posted an even worse decline – over 20%.
Sasha Ivanov, founder of Waves Protocol, accused Alameda Research of price manipulation and shorting. They also claimed that the address indicating borrowing and selling activity of dollar-pegged tokens is linked to an SBF-backed cryptocurrency trading firm.
BS conspiracy theory?
After the latest accident, the Ivanovs argued That someone reached out to him through Vires Finance to borrow one million WAVES tokens, a request he claimed to have turned down, citing company policy and also believing it could be used for shorting. Upon further research, Ivanov insisted that the address behind it was linked to Alameda Research.
SBF dismissed the entire fuss and tweeted,
obv bullshit conspiracy theory
— SBF (@SBF_FTX) 3 April 2022
The Waves project has been called by many in the crypto sector to be a Ponzi scheme. Some speculated that it was recently achieved by artificially inflating the price of WAVES, by borrowing the USDC stablecoin to buy its native token.
Twitter user 0xHamZ recently alleged Its initial acclaim was due to its recognition as the “Russian Ethereum”. He also claimed that the project was burning WAVES to hedge its flagship stablecoin USDN and then later depositing on the blockchain’s native DeFi lending platform, Vires, and borrowing USDC from the protocol.
Waves’ price rise at the beginning of last month coincided with Russia’s invasion of Ukraine. Interestingly, this was noted by Peter Guo, a researcher at Hong Kong-based crypto investment firm Babel. He added that “some may run into ripples in response to potential economic sanctions and limited traditional payment channels.”
However, Ivanov insisted that neither the Waves project nor the project itself had any ties with Russia. Instead, the founder believes that growth has been organic.
Result
Ivanov after the incident announced That a new DAO protocol change proposal was submitted to Wires Finance. It aims to temporarily reduce the liquidation limit for Waves and USDN lending to 0.1% while limiting the maximum lending APR to 40% to prevent market manipulation.
However, Crypto Twitter was not Impressed, In fact, the latest D-peg of the USD has caused concern for the UST due to the similarity of the two in terms of utility and depth of liquidity.
You must be wondering what is happening $USDN It is possible $USTBecause they are similar designs.
And the answer is yes, it can be.
How will I know?
BC this happened last May. pic.twitter.com/GcUCK0NZAv
— (@scott_lew_is) 4 April 2022
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.