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Cryptoknowmics 2022-06-25 08:29:35

Waves Founder Holding $500 Million Debt To Avoid USDN Depeg

The founder of the Waves blockchain network and the Neutrino (USDN) stablecoins, Sasha Ivanov, has found a novel approach to address the liquidity crisis by absorbing six overextended USDN loans into his wallet. Ivanov promised to gradually pay off the debt without causing the coin to depreciate. Currently, the Waves creator owes more than $530 million. Ivanov has gradually spent the USDN in his wallet over the past month. Repayment Of The Debt Waves have expressed confidence in the repayment of the debt, but lenders attempting to remove assets face restrictions and fierce competition for any available liquidity. Some dispute the viability of the debt’s repayment. On May 31, holders of Vires tokens cast a vote on the proposal. Vires has set a daily withdrawal cap of USD 1,000 Coin (USDC) or Tether (USDT) per user, yet users have had difficulty withdrawing any money. Vires receive periodic additions of liquidity from the corporation, which are quickly withdrawn. Decline in Cryptocurrency Prices After de-pegging several times during the decline in cryptocurrency prices, USDN defied expectations that it was about to collapse. Vires’ debt consolidation and withdrawal restrictions have allowed USDN to reinstate its $1 peg and prevent a death spiral akin to the UST. Ivanov must pay additional interest on top of the principal due to the debt’s daily interest accrual of more than $500,000. The business is still specific; Ivanov will f...

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