And recover from the onslaught caused by stablecoin incidents such as the Terra collapse, another algorithmic stablecoin is struggling as it slips below its dollar peg.
Neutrino Dollar (USDN), an algorithmic stablecoin, has deviated from the dollar once again, marking the fourth time this year that USDN has failed to retain its dollar peg. At the time of writing, the Waves-backed stablecoin was trading at $0.94.
In April, the USDN plummeted to $0.78 after price manipulation claims surfaced. After its first meltdown, the stablecoin quickly rebounded. However, the digital asset began to deteriorate again in the months that followed. In May, it plummeted to $0.82 per token and again in June, trading at roughly $0.93 per token.
To address the stability concerns, the stablecoin team launched a vote to adopt changes to the protocol's parameters. Following the vote, the team incorporated additional mechanisms to enhance the protocol's economics. This includes modifications to the maximum swap amount, backing ratio protection mechanisms, and improved prize distribution.
Meanwhile, recent Acala Network exploits drove the price of its stablecoin Acala USD (aUSD) down by 99%. More than a billion aUSD were minted out of thin air, causing holders to question how the decentralized financial protocol would recover. At the time of writing, aUSD was trading at $0.65 per token.
Earlier this month, HUSD, a stablecoin backed by crypto exchange Huobi, plummeted below $0.82 owing to a liquidity issue. According to the exchange, the depeg was caused by the closure of market maker accounts for regulatory compliance. This resulted in a short-term depeg, which was quickly corrected by the issuers.
