Developers of the Waves-based algorithmic stablecoin neutrino (USDN) will convert the asset into a Waves Ecosystem Index Token (WIXT) in an effort to rescue the project, which lost its US dollar peg several times so far.
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In a blog post, the USDN developers said that the notorious stablecoin cannot withstand the "unprecedented market volatility." The new asset will be collateralized by a basket of tokens from the Waves ecosystem and will no longer be pegged to $1.
WIXT will be based on supply and demand as well as the so-called "backing ratio," which will calculate the difference between the total value of all the assets held in collateral against the value of the circulating supply.
The developers claim the transition will be a "win for all USDN holders." It is expected that USDN will be converted to WIXT by mid-Feb, with $15 million worth of tokens to be added as collateral by Apr.
As of press time, USDN is trading way below the $1 mark at $0.35. The stablecoin's market cap is set below $240 million.
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