Blockchain data suggests that the Waves team may have sold its own stablecoin, USDN, to top-up the bridge of its DEX and also buy back the debt accumulated by its Vires lending platform.
A crypto analyst posted on Twitter alleging the Waves team sold up to $138 million in USDN since April last year, after the Vires platform experienced a liquidity crunch.
Ever since USDN depegged in April, the Vires lending protocol suffered an alleged “liquidity crisis” which led to the loss of up to $500 million in users’ funds that were lent on the Vires protocol. The crypto analyst told Protos that sales of USDN to top up the Waves DEX bridge slowed down as the USDN price crashed.
The claims come after Waves DEX users were unable to withdraw USDT or USDC from the exchange. The Waves DEX Ethereum bridge revealed it was depleted of all its USDC and USDT — worth $31.5 million and $58 million respectively. At the time, Protos was unable to confirm if the Waves DEX was using Binance to store and trade the crypto deposited on it.
However, on-chain activity shows the Waves team dumped USDN in exchange for Waves and then sold the Waves on Binance for USDT, which is used to top-up the DEX.
Source: https://protos.com/waves-team-accused-of-dumping-its-stablecoin-to-stay-afloat/