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↓Risk assessment on Neutrino USDN ecosystem for veCRV holders and LPs
USDN has suffered multiple depegs, including to $0.78 in April 2022 amid a Vires Finance liquidity crunch that accrued $500M in bad debt, with its backing ratio now at just 10% due to WAVES price crashes and failed recapitalization efforts via SURF tokens. Restrictions on minting, swaps, and cross-chain transfers have made arbitrage inefficient or impossible below 10% BR, increasing tail risks in the imbalanced USDN/3CRV Curve pool where liquidity has dropped to $18.7M.
