According to the statement, DCB recently contacted the Near Foundation to advise it that USN had become undercollateralized, a condition that is “inherent” with algorithmic stablecoins, especially in “extreme market conditions.” DCB further confirmed, according to the foundation, that there was also double-minting of USN, which contributed to the undercollateralization.
Source: https://www.coindesk.com/markets/2022/10/24/near-foundation-urges-wind-down-of-usn-stablecoin-sets-aside-40m/?utm_medium=referral&utm_source=rss&utm_campaign=headlines