Algorithmic stablecoin USDN dropped to $0.90, marking the fourth failure to defend its dollar peg for 2022.
The crypto community is trying to navigate the bear markets and recover from the chaos caused by the Terra crash, but another algorithmic stablecoin is showing signs of trouble as it drops below its dollar peg.
Algorithmic stablecoin Neutrino dollar (USDN), has again deviated from USDN, marking the fourth consecutive year that USDN has struggled to keep its dollar peg. Waves-backed stablecoin Neutrino Dollar (USDN) is currently trading at \$0.90 as of this writing.
USDN fell to $0.78 in April after price manipulation allegations began to float. Within a matter of days, the stablecoin had recovered from its initial crash. The digital asset showed signs of weakness again in the months that followed. It traded at $0.93 per token in June, and fell to $0.82 in May.
The stablecoin team initiated a vote in order to address stability issues. The team created new mechanisms to improve the protocol’s economics after the vote. This includes changes to the maximum swap amount, backing rate protection mechanics, and improved rewards distribution.
A recent exploit in Acala Network caused the stablecoin AcalaUSD (aUSD), to drop by 99%. It was a surprise that more than 1 billion USD were created out of thin air, leaving its holders to wonder how the decentralized financing protocol would rebound. As of this writing, the price for an aUSD token is $0.65
HUSD, a stablecoin supported by Huobi, dropped to $0.82 earlier this month due to a liquidity issue . According to the exchange, the depeg occurred due to the closing of market maker accounts to ensure regulatory compliance. The issuers quickly fixed the short-term depeg.