Layer 1 blockchain Waves, which has been mired in a liquidity crisis, will go ahead with a revival plan recently approved by the community behind its decentralized finance (DeFi) lending protocol Vires.Finance, to allow certain account holders to withdraw funds or keep their positions for later repayment.

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Fast facts

  • The price of the blockchain’s native token WAVES and its ecosystem’s stablecoin USDN dropped drastically in April following price manipulation allegations.
  • USDN depegged from the dollar in April, triggering a liquidity crisis.
  • As a result, the Vires.Finance team submitted a proposal to have users who hold over US$250,000 to choose to exchange their position for USDN with a 365-day vesting period and a 5% liquidation bonus, or keep their funds in USDT or USDC on the platform with a 0% annual percentage yield and receive repayments depending on market conditions.
  • The proposal was voted on and approved on Friday, according to the lending protocol’s website.
  • USDN was changing hands at US$0.9903 at 10:30 a.m. HKT on Wednesday, while WAVES was trading at US$5.6, down from an all-time high of US$62.36 on March 31, according to data from CoinMarketCap.

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