Algorithmic stablecoin Neutrino USD, which was just in the Top 60 just last week and once had a $1B market cap, has depegged to $0.60

Neutrino USD (USDN), which was in the Top 60 just last week and once had a $1B market cap, has depegged from $0.95 to $0.60 over the past week.

It is an algorithmic stablecoin collateralized by the WAVES token, which fell from a marketcap of $6B in March 2022 to $700M after the collapse of UST, all the way down to $170M now. WAVES's market cap has been below USDN's marketcap since June 2022, so it's no surprise that USDN depegged without its collateralized backing.

What is surprising is that it's still in the Top 75 by market cap.

Unlike Terra's UST, USDN didn't immediately collapse once the collateralization ratio fell below 1. That's mainly because of the complicated system Neutrino Protocol used that requires owners to hold NSBT and SURF tokens to swap USDN for WAVES, and the lack of liquidity to exit. It took 6 months before it collapsed.

Neutrino USD is similar to Tron's USDD: overcollateralized but with little liquidity to exit. I'm betting that USDD will also eventually collapse as its collateralization ratio keeps falling too, but that will take much longer.