In order to avoid another stablecoin crash and crypto contagion, the NEAR Foundation is taking steps to assist USN holders.
The NEAR Foundation stated on October 24 in a blog post that it has set aside $40 million for a “USN Protection Programme” grant.
The fund is intended to protect USN holders and users by ensuring that the stablecoin may be redeemed 1:1 with USDT.
The USN Protection Programme fully covers the $40 million USD collateral deficit. This difference is constant and unrelated to the $NEAR token pricing (and $NEAR has never had a hardcoded burn/mint relationship to USN).
Given the difficulties raised above, the NEAR Foundation said it recommends that DCB wind down USN in a systematic manner.
The NEAR Foundation has awarded a $40 million grant to a subsidiary of Aurora Labs, one of the NEAR ecosystem’s most important contributors, to help with this process.
In the blog post, the company noted that redemptions will begin once DCB has completed the necessary procedures to ensure a smooth transition. In addition, this program will be offered for one year until October 24, 2023.
Furthermore, the team mentioned that eligible USN holders have the option of redeeming their USN through the USN Protection Programme or exchanging their USN through any other available channel.