The app that produces stablecoin Vader Protocol US Dollar (USDV) will be shut down, according to a Dec. 29 announcement from its developers.
Similar to the defunct Terra network, the Vader protocol was an algorithmic stablecoin network. To maintain USDV at $1, arbitrages were intended to be encouraged.
The Vader team suspended the mint feature of the program when Terra assets depegged in May from the real-world assets they were supposed to reflect.
It aimed to shield consumers from any issues that might develop if their stablecoin likewise depreciated. The Vader team claimed that throughout the course of the following six months, it searched for ways to improve the app’s security.
The team, however, “discovered no noteworthy breakthrough in the algorithmic stablecoin design that is capital efficient after extensive research and talks.”
Users are unable to deposit their leftover USDV into the app to receive its backing using the standard redemption procedure since they have suspended the burn feature.
Instead, to divide the app’s remaining treasure, the developers built a redemption portal. They want to continue offering that redemption app until June.
The Curve and Uniswap liquidity pools have been disrupted by the developers in order to fairly divide the funds, and existing shares have been snapshotted to enable this.
Protocol Vader It is unknown if USDV holders would receive $1 worth of cryptocurrency per coin or any other smaller sum since USD appears to have been delisted on all of the major coin price data fees.
One of the biggest crypto crashes of 2022 was the collapse of the US Dollar Terra. It contributed to the closure of Midas Investments and caused a contagion to spread throughout the cryptocurrency industry. Do Kwon, the company’s creator, is still alleged to have broken South Korean capital markets laws, but officials have not yet been able to find him.
