Vader will shut down stablecoin USDV, cannot find a ‘breakthrough’

29 Dec 2022

By Tom Blackstone

The remaining treasury will be distributed to users through a redemption app until June, according to the protocol.

The app that produces stablecoin Vader Protocol US Dollar (USDV) will be shut down, according to a Dec. 29 announcement from its developers.

Vader protocol was an algorithmic stablecoin network similar to the failed Terra network. It was supposed to encourage arbitrages to keep USDV always equal to $1. When Terra assets depegged in May from the real-world assets they were supposed to represent, the Vader team paused the mint function of the app. It hoped to prevent users from exposing themselves to whatever problems might arise should its stablecoin also depeg.

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