The demise of stable tokens is a main concern in the cryptocurrency industry. Now the NEAR fund stablecoin is the dominant currency. However, steps were taken by the managers of it to forestall further catastrophe.
In a recent statement, the NEAR company called the procedure the UST Security Scheme and said it would establish a 1:1 payout ratio for owners.
No More Lost Warranty
All stable tokens are pledged, but poorly diversified stablecoins can depreciate against the fiat currency. USN is a dollar-linked stablecoin financed by NEAR and USDT finances. As denoted by Decentralized Bank on October 24th, the improvement is an effort to address the jeopardy of the USN stablecoin.
In April, it had a $10 million shortfall in guarantees after the release of the USN, and ended up with a shortfall of twenty million dollars. The Bank believes this shortfall stems from a key issue: market perception is rapidly changing due to the recent crypto market crash.
Apparently, much of the concerns coming from the NEAR users stems from the large LUNA collapse that impacted USDT. The Decentralized Bank appended forty million dollars to fill out the crack, and NEAR is designed to operate on its own, so this move is irrelevant and will not affect the value of its own token.
The stability of NEAR
Big companies like peckShield recently tweeted that NEAR plummeted from its $247 million to $140 million due to his Decentralized Bank cash removal from his USN pool at Ref Finance. However, Ref Finance made an announcement on Twitter on the 25th to calm down the clients. According to their statement, $USN is still 1-1 and can be safely converted to USDT. The rewards will be accessible until the end of November, allowing owners to make good choices in the marketplace.
But is the Decentralized Bank really correct in saying NEAR coins are unaffected? Native tokens seem to be doing well despite the massive reduction in collateral in the NEAR ecosystem. Its price is presently up by two percent and the immediate value level is about three dollar per coin.