The developers of USN stablecoin announced a version 2 (v2.0) update of their project on Thursday. USN is a soft-pegged decentralised stablecoin that runs on the Near Protocol, a scalable Layer 1 blockchain.
USN was originally built similarly to TerraUSD (UST), the stablecoin that collapsed and brought down its sister token Luna (LUNA) with it. After the demise of UST, there were fears that other stablecoins built in the same way would follow suit.
From Thursday, the stablecoin will be minted exclusively with USD Tether (USDT), Tether’s largest centralised stablecoin. This means that USN, rather than NEAR, the native token of the Near Protocol blockchain, will be collateralised and redeemed 1:1 with USDT.
Furthermore, the DAO stated that it intends to use a basket of market-leading stablecoins, including USDT, USDC, and DAI, as its underlying collateral. According to the team, this strategy will make the stablecoin more resilient in the current market scenario.
“We concluded that given the uncertainty around how long this bear market will last and the selling pressure induced by tightening macro conditions, the v1.0 could, potentially, pose a risk that $USN could become undercollateralized from sustained volatility of the NEAR price,” Decentral Bank DAO said in a media statement.