The dollar-pegged asset is connected to the Waves blockchain protocol. Recently, the Neutrino Protocol made the decision to add a token known as SURF to USDN's reserve basket in order to "enhance the mechanics of recapitalizing USDN reserves."

Waves Stablecoin USDN Fails, Team Adds SURF to Improve Algorithmic Stablecoin's Reserve Mechanics, and Waves Founder Rejects Criticisms

On September 5, 2022, the price of one unit of USDN reached a new all-time low of $0.94, indicating that this stablecoin has also deviated from its initial goal of maintaining parity with the US dollar. According to information compiled by Coingecko.com, the value of one neutrino USD coin decreased even further the previous day, falling to $0.918. On August 26, metric readings across the past 30 days indicate that USDN reached a low of $0.905. This is not the first time that USDN has veered away from the $1 parity; in fact, it happens very frequently. Prior to the low that was reached on August 26, the neutrino USD price had experienced three other substantial declines below the price value of $1 so far this year. [rb_related title="More Read" style="light" total="4"]

Before August 26, the price of USDN fell to $0.938 per token on July 14, and it fell to $0.824 per coin on May 11. Before August 26, the price of USDN had been relatively stable. The value of the neutrino usd fell to a new all-time low on April 4, falling to $0.787 per coin, which is even lower than the losses that were recorded on May 11. In more recent times, the Neutrino Protocol included a token known as SURF (Smart Utility Recapitalization Feature) in USDN's basket of reserves. SURF stands for "Smart Utility Recapitalization Feature." With the addition of SURF to the mix, there are now four distinct tokens that can be leveraged for USDN reserves. These include the USDN stablecoin, NSBT, and WAVES. The Neutrino Protocol describes itself as "an algorithmic price-stable assetization protocol operating as an accessible defi toolset." [Citation needed] The team hopes that SURF will increase USDN's backing ratio (BR) by attaining "BR equilibrium and providing new incentives for the community and investors." Some advocates of cryptocurrencies have said that the creators of Waves are working on methods to render USDN "undepeggable," and that SURF is a solution that contributes to that effort. The incorporation of SURF into the USDN reserve mix has been the subject of inquiry as well as criticism as of late.

A number of people have asserted that Waves is a Ponzi scheme, and the USDN currency has been compared to Terra's UST. On the other hand, Waves founder Sasha Ivanov addressed the issue in an interview with Coindesk on August 31, and he refuted the comparison of USDN to Terra's UST. "UST was not backed by anything, as the creation of UST required the destruction of LUNA [the token]. According to what Ivanov said to the reporter, "It was never supposed to be backed up by anything other than the algorithm." "In contrast, the case with USDN is exactly the opposite. WAVES coins are currently being used as collateral for USDN and are being stored in a smart contract.