If waves price was between 40-60$ you minted a lot of usdn. It doesn’t have any economical sense.
1 waves locked when price was 50$ minted 50 usdn.
50 usdn burned when waves price is 5$ release 10 waves.
How BR can be >1 in long term? Can’t be. Smart contract will be empty sooner or later.
Your problem is that there is no limit on usdn mint based on price projection. there is no price “projection” algorithm.
However that’s not the only problem. there should be a limit based on the total waves supply that isn’t staked.
And on top of that, you don’t refer to minting due to the interest rate of usdn itself.
The current situation for usdn is past the fixing. the damage is done. people will lose money(have already lost but it’s unrealized).
Were these problems obvious from the start? YES! did the developers ignore them and decided to let their greed and laziness take over? YES! are the developers to blame? not if they didn’t falsely advertise it(i doubt that they didn’t). people should know what their getting into.
A reset is needed with a proper algorithm that can work during a bear market. Staking shouldn’t be the purpose of a stablecoin. It should be for equivalent usages of what it represents. usdn stakers must agree to bear a risk and have their usdn locked and interest rates cut to zero if the reserve ratio falls below a number like 1.5 (total waves supply that isn’t involved in any smart contract should also be considered in some way).
The developers made staking the main usage of this stable coin. Not usage and adoption. not the reason why people would want to adopt a decentralized stable coin. They chose to target people’s greed instead of their desire for freedom.
We all know how this game ends. It will depeg and become a meme coin. the coin has too much debt. it is bankrupt. This process can only be slowed down still people realize their unrealized losses.
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