Near Foundation launches a $40M fund to cushion USN stablecoin investors
Join Our Telegram channel to stay up to date on breaking news coverage After the USN stablecoin was undercollateralized, the Near Foundation proposed winding down the in-house stablecoin to ensure that the situation that happened with Terra Luna and TerraUSD did not happen. Near launches a $40M fund to cushion USN investors On October 24, Near Foundation announced it was setting up a $40 million fund that would cushion USN investors. The fund will allow these investors to redeem their USN tokens on a 1:1 basis with USDT. The fund was launched after Decentral Bank, which is behind the USN stablecoin, raised concerns about the depegging of the stablecoin because of a failure of the algorithm. The USN Protection program will cater to the collateral gap of $40 million. In a statement, Near Foundation said it was “recommending that DCB wind down USN in an orderly manner. To assist with this process, the NEAR Foundation has provided a $40M USD grant to a subsidiary of Aurora...