- The team at Waves (WAVES) has announced a DeFi revival plan meant to make its users whole and restore the full functioning of protocols in its ecosystem.
- The plan aims to fix USDN’s depeg and the liquidity crisis (a bank run) that soon followed on Vires Finance.
- Waves’ plan will consist of four steps in collaboration with the Waves community.
As the crypto-verse focused on UST’s depegging and the LUNA inflation that caused a massive crypto market pullback, the Waves-backed stablecoin of USDN also underwent its own depegging that led to a liquidity crisis on Vires Finance.
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As a result, the team at Waves (WAVES) has announced a DeFi Revival plan meant to make its users whole and restore the full functioning of protocols within its ecosystem. The master plan will implement new measures ‘to attract new liquidity to USDN and improve the architecture of the algorithmic stablecoin to resist future black swan events.’Additionally, Waves Founder, Sasha Ivariv, has proposed to personally absorb the $400 million worth of debt held by late borrowers.
The full plan consists of the following four steps.
- Boosting demand for USDN by buying and locking CRV tokens with 45% of the Waves staking profits from Neutrino and voting to incentivize the USDN 3-pool.
- Waves founder, Sasha Ivanov, absorbing the stated $400 million debt and proceeding to liquidate the whale accounts’ collateral to return liquidity to Vires through the selling of USDN.
- The slow and steady selling of USDN for up to two months to return Vires Finance to full working order.
- Improving the architecture of Neutrino by issuing a new recapitalization token to replace NSBT eventually. ‘This new token will be tasked with recapitalizing Neutrino with new Waves tokens when under-collateralized since NSBT fails to do so in current conditions. The recapitalization token holders can earn a reward from 50% WAVES staking rewards in the Neutrino contract.’
Waves DeFi Will Be Restored to Full Function Thanks to its Community
The plans outlined above have been in collaboration with the Waves Community as explained by Sasha Ivanov through the following statement:
This new plan to restore functionality and explain the full situation to the community would not have been possible without the Vires and Neutrino team members.
They have worked tirelessly on finding solutions for this crisis, and I firmly believe they have identified the steps to succeed.
This has been a real stress test for the Waves DeFi ecosystem, and it is incredible to see the support from the Waves community in navigating this crisis successfully.
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