In the dynamic world of cryptocurrency, a contentious situation has emerged involving Wintermute, a prominent trading firm, and the NEAR Foundation, the organization behind the NEAR protocol. Wintermute’s CEO, Evgeny Gaevoy, has publicly accused the NEAR Foundation of reneging on a significant stablecoin redemption deal, stirring concerns in the crypto community.
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Wintermute’s Allegations Against NEAR Foundation
According to Gaevoy, the NEAR Foundation backtracked on an agreement to convert $11 million worth of USN stablecoins into Tether (USDT) at a one-to-one rate. This deal was part of a larger effort by Wintermute to assist the FTX estate in liquidating assets to repay creditors, which included the said amount in USN stablecoins.
Despite executing the transaction based on the alleged agreement, Wintermute claims that when the time came to redeem the USN, the NEAR Foundation did not honor their commitment. Two and a half months have passed without Wintermute receiving any USDT, leading to a final offer from the NEAR Foundation of only 20% of the original $11 million.
The Underlying Tensions and Legal Implications
This dispute has not only highlighted the volatility and risks associated with algorithmic stablecoins but also the legal complexities that can arise in the decentralized finance space. Wintermute has expressed its determination to explore all legal avenues against both the NEAR Foundation and Aurora, the entity that facilitates asset transfers between the Ethereum network and the NEAR protocol.
USN’s Journey and NEAR Foundation’s Fund
USN was initially launched by Decentral Bank as an algorithmic stablecoin without direct financial backing from the NEAR Foundation. However, the scenario changed when USN became undercollateralized, prompting the NEAR Foundation to set up a $40 million fund to support USN to USDT conversions.
The Public Appeal and Lack of Response
Gaevoy’s public statement serves as a final appeal to the NEAR Foundation to fulfill the redemption agreement. The lack of immediate response from the NEAR Foundation and Aurora to this situation has left many awaiting further developments.
