The Waves community (WAVES) has supported a governance proposal to revive the decentralized finance (DeFi) lending protocol, Vires.Finance, following its liquidity crisis. The vote is intended to stabilize the project and compensate users who were affected.
In April, Neutrino (USDN), a stablecoin running on the Waves platform, de-pegged from the dollar. This led to a number of user withdrawals within the platform, which resulted in a liquidity shortage where users were unable to withdraw their funds from the platform. During the event, Waves founder Sasha Ivanov stepped in, accumulating $500 million in his wallet with the intention of gradually paying it off.
To fix the situation, the Vires team presented a proposal that gives two options to users with a balance greater than US$250,000 on the platform. The first option is to redeem your positions for USDN, with a grace period of 1 year and a 5% settlement bonus. The second option is to stay in USD Coin (USDC) and Tether (USDT) with 0% APY, which will be reimbursed by Ivanov, with no guarantees on the timing of payments.
With the proposal in place, the Vires team hopes to have better liquidity, allowing users to withdraw their funds from the platform. In the announcement sent to Cointelegraph, Ivanov thanked the Waves community for supporting the proposal, noting that the community always has the final say on their platform.
Following the crash of the Terra Classic USD (USTC) stablecoin, some stablecoins showed signs of shedding their dollar pegs, causing the cryptocurrency market to fear. One of them is DEI, the Deus Finance stablecoin. In May, DEI fell from its dollar parity to USD 0.60. At the time of writing, the stablecoin is trading at $0.17.
In addition to DEI, the USDD stablecoin protocol price also showed signs of weakness in June, dipping to $0.97. However, Tron’s DAO mobilized 700 million USDC to defend its peg. At the moment, the stablecoin maintains its parity between 0.99 and 1 dollar.
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