Algorithmic stablecoin USDN, which is designed to mimic the value of the U.S. Dollar, has fallen of its peg to $0.91.
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USDN is backed by the Waves token (WAVES) and leverages the staking model of the Waves protocol’s underlying consensus algorithm.
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Waves’ token is trading 3.86% lower over the past 24-hours, according to CoinGecko.
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Concerns over the algorithm have previously been raised by the company’s founder Sasha Ivanov.
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“We have to work on the algorithm,” Ivanov said on CoinDesk TV’s “First Mover” program in June. “And what happens now is kind of inevitable, which is just a test of the whole system.”
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Algorithmic stablecoins have been in the spotlight this year following the collapse of TerraUSD (UST) and the LUNA ecosystem, which saw $83 billion in market cap evaporate in May.
