{"id":69053,"date":"2022-10-25T11:42:32","date_gmt":"2022-10-25T08:42:32","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69053"},"modified":"2025-09-07T17:38:47","modified_gmt":"2025-09-07T14:38:47","slug":"near-foundation-to-discontinue-support-for-the-usn-stablecoin","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/near-foundation-to-discontinue-support-for-the-usn-stablecoin\/","title":{"rendered":"NEAR Foundation to discontinue support for the USN stablecoin"},"content":{"rendered":"<p>The NEAR Foundation&#8217;s USN stablecoin project will cease operations due to multiple risks, including insufficient collateral.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">In response to a recent issue with USN, the <a href=\\\"https:\/\/twitter.com\/NEARFoundation?ref_src=twsrc%5Etfw\\\">@NEARFoundation<\/a> is funding a protection Programme to safeguard USN holders.<\/p>\n<p>More details below \ud83d\udc47<a href=\\\"https:\/\/t.co\/NDMZUO2Wim\\\">https:\/\/t.co\/NDMZUO2Wim<\/a><\/p>\n<p>\u2014 NEAR Protocol | Create Without Limits (@NEARProtocol) <a href=\\\"https:\/\/twitter.com\/NEARProtocol\/status\/1584580955049578499?ref_src=twsrc%5Etfw\\\">October 24, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>The launch of the \u201cstablecoin\u201d from a platform competing with Ethereum, <a href=\"https:\/\/u1f987.com\/en\/news\/near-protocol-launches-algorithmic-stablecoin-usn\"> took place in April<\/a>. The operator of the crypto asset was the decentralized <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\"> autonomous organization<\/a> Decentral Bank.<\/p>\n<p>Initially, the stablecoin&#8217;s price was supported by arbitrage operations and a reserve fund of NEAR and USDT. The launch of USN coincided with an unfavorable market environment, notably with the <a href=\"https:\/\/u1f987.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\">collapse of the Terra ecosystem<\/a>.<\/p>\n<p>According to a statement by the NEAR Foundation, the asset has recently become undercollateralized.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abDecentral Bank confirmed that this happened due to the originally algorithmic version of USN (v1). After the June upgrade to the second version, it ceased to be algorithmic, but remained exposed to the risk of undercollateralization under extreme market conditions\u00bb, \u2014 the nonprofit organization&#8217;s blog said.<\/p>\n<\/blockquote>\n<p>Later, Decentral Bank also published a post about the \u201cgradual winding down of the project\u201d.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">A Message to the Community: <a href=\\\"https:\/\/twitter.com\/search?q=%24USN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$USN<\/a> Wind-down<\/p>\n<p>TLDR; <a href=\\\"https:\/\/twitter.com\/search?q=%24USN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$USN<\/a> is gradually winding down. The contract will be accessible indefinitely, with only minting disabled. <a href=\\\"https:\/\/twitter.com\/search?q=%24USN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$USN<\/a> is safely redeemable 1:1 for <a href=\\\"https:\/\/twitter.com\/search?q=%24USDT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$USDT<\/a> through a $40M Protection Program. <\/p>\n<p>Full statement: <a href=\\\"https:\/\/t.co\/bnCCFqdzZm\\\">https:\/\/t.co\/bnCCFqdzZm<\/a><\/p>\n<p>\u2014 Decentral Bank (@DcntrlBank) <a href=\\\"https:\/\/twitter.com\/DcntrlBank\/status\/1584600881169072128?ref_src=twsrc%5Etfw\\\">October 24, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Under the USN Protection Programme, $40 million has been allocated, enabling users to swap NEAR&#8217;s stablecoin for USDT and other assets over the course of a year.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u00abOver the past several months, USN has faced a number of obstacles amid heightened regulatory scrutiny and shifts in market perception due to recent high-profile incidents,\u00bb said representatives of Decentral Bank.<\/p>\n<\/blockquote>\n<p>The chart below illustrates the relative stability of the stablecoin since its launch.<\/p>\n<figure class=\\\"wp-block-image size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"842\\\" height=\\\"676\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/USN-Price-Chart.png\\\" alt=\\\"NEAR Foundation will discontinue support for the USN stablecoin\\\" class=\\\"wp-image-188573\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/USN-Price-Chart.png 842w, https:\/\/u1f987.com\/wp-content\/uploads\/USN-Price-Chart-300x241.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/USN-Price-Chart-768x617.png 768w\\\" sizes=\\\"auto, (max-width: 842px) 100vw, 842px\\\" \/><figcaption>Data: <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/usn\\\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<p>Earlier, in September, NEAR Foundation <a href=\"https:\/\/u1f987.com\/en\/news\/near-foundation-launches-100m-fund-focused-on-web3\">launched a fund<\/a> of $100 million focused on Web3.<\/p>\n<p>In the same month, Tether Operations Limited <a href=\"https:\/\/u1f987.com\/en\/news\/tether-launches-usdt-stablecoin-on-the-near-network\">issued the USDT stablecoin<\/a> on the NEAR network.<\/p>\n<p>Follow ForkLog&#8217;s bitcoin news on our <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The NEAR Foundation&#8217;s USN stablecoin project will wind down due to multiple risks.<\/p>\n","protected":false},"author":1,"featured_media":69054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1216,807],"class_list":["post-69053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-near-cryptocurrency","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69053"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69053\/revisions"}],"predecessor-version":[{"id":69055,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69053\/revisions\/69055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69054"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}