NEAR Foundation Announces $40 Million USN Protection Program
To prevent the collapse of the USN algorithmic stablecoin, the NEAR Foundation announced a $40 mln "USN Protection Program". The company aims to ensure that a stablecoin based on the NEAR blockchain can be redeemed at a 1:1 ratio with USDT.
The stablecoin was already under-backed in the first half of the year. The vulnerability has risen from $10 mln to $21 mln as a result of recent market difficulties. The NEAR course has remained largely unchanged to this day. However, Twitter user PeckShield noticed a 45 percent drop in total value locked (TVL) on NEAR over the past 24 hours.
The USN stablecoin is now trading below the $1 mark. In May, the Terra ecosystem collapsed following the failure of the algorithmic stablecoin UST. Just over a month ago, Tether launched USDT as a direct competitor to the NEAR blockchain.