Blockchain of the first level NEAR Protocol announced the stoppage of the native stablecoin USN. The team made this decision because of the risk of the same failure as it was with UST.
USN began operations in April 2022. The stablecoin was created to increase the liquidity of the NEAR ecosystem. The USN (smart contracts and reserve fund) was managed by DAO Decentral Bank.
In the spring of 2022, the risk of USN underfunding began to emerge. As a result, a gap has appeared in the provision of the asset. Also, USN is negatively affected by falling quotes. It is worth noting that since the beginning of the year, the price of the token has fallen by almost 80%. Analysts of Decentral Bank associate such indicators with changes in the market and increased attention from regulatory authorities.
The USN shutdown is accompanied by a program to protect investors. Thus, the issue of new coins will be stopped. The developers of the token encourage USN holders to convert the stablecoin.
Earlier, news came out that NEAR was adding tools to support more wallets.
