Cryptocurrency analyst @USD Denominated said he observed that the Waves decentralized exchange team sold off $138 million worth of USDN since April last year, shortly after the Vires platform experienced a liquidity crunch.
The crisis was observed after the loss of Neutrino (USDN) peg to the US dollar in August 2022 and resulted in the loss of more than $500 million of user funds loaned under the Vires protocol.
Subsequently, Waves DEX users were unable to withdraw USDT or USDC stablecoins from the exchange as the Waves DEX Ethereum bridge notified users that it had depleted all of its USDC and USDT reserves, $32 million and $58 million respectively. The crypto expert suggested that USDN selling in addition to the Waves DEX bridge slowed down as the value of USDN plummeted.
However, an analysis of on-network activity showed that the Waves team exchanged USDN on Waves and then sold Waves on Binance in exchange for USDT, which was subsequently used to support the DEX.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
