USDN Transition to WIXT

Plans have been announced to recover the stablecoin Neutrino USD (USDN), the stablecoin on the Waves altcoin network, whose price should normally equal $1. The Neutrino community has accepted a proposal to convert the popular stablecoin USDN into the Waves Ecosystem Index Token, now known as WIXT. This move marks a significant shift for USDN, which should have previously been pegged at $1.

WIXT will be collateralized with a basket of Waves Ecosystem tokens, allowing its price to fluctuate based on supply and demand and indirectly the Margin Ratio (BR). For WIXT, the focus will now shift from maintaining a peg to the dollar to achieving a 100% coverage ratio. SURF holders will still have the opportunity to arbitrage with WIXT. Buying SURF can be viewed as buying WIXT at a discount, as the SURF price is determined by the coverage rate. Also, staked SURF will automatically convert to WIXT when the margin rate reaches 115%.

The transition to WIXT is already underway, with the development of the new token due to be completed in January. In February, USDN will be renamed WIXT, and $15 million worth of ecosystem tokens will be added as collateral for WIXT from March to April, with each token included by a management vote.

The move from a dollar-pegged stablecoin to a floating token collateralized with a basket of ecosystem tokens is a significant change and it will be interesting to see how WIXT will perform in the market.

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