Aurora and NEAR have clarified that Wintermute's attempts to redeem USN tokens were inconsistent with the purpose and terms of USNPP.
Aurora Borealis Limited (ABL) and NEAR Foundation (NF) recently addressed the claims made by Wintermute (WM) in a Twitter thread. Wintermute’s accusations revolved around the failure of the Near Foundation and Aurora Labs to honor USN redemptions, resulting in financial repercussions for Wintermute and potential industry ramifications. However, in response, ABL and NF clarified that Wintermute’s attempts to redeem USN tokens were inconsistent with the purpose and terms of the USN Protection Programme (USNPP).
Aurora’s Rebuttal to Wintermute’s USN Redemption Claims
Firstly, the response emphasized that Wintermute’s claims were baseless and lacked merit. Aurora clarified that Wintermute attempted to utilize the USNPP in a manner that contradicted its intended purpose and terms of use. The USNPP was established to safeguard USN users and the NEAR ecosystem.
The context revealed that Wintermute sought to profit from the acquisition of distressed assets from the Alameda estate, a move that did not align with the objectives of the USNPP. Consequently, their claim was rejected, leading Wintermute to publicly criticize Aurora and Near Foundation.
A comprehensive overview of the events illustrated that USN, a stablecoin native to NEAR, was introduced by Decentral Bank independently without direct financial assistance from NF or ABL. Following the undercollateralization of USN in late October 2022, ABL initiated the USNPP to protect affected users.
In August 2023, Wintermute acquired 11.2 million USN from the Alameda estate and attempted to redeem them for USDT. However, this redemption request was not in line with the intended purpose and terms of the USNPP as outlined by ABL.
Aurora’s Perspective on Wintermute’s USN Redemptions Allegations
The USNPP’s primary goal was to ensure the protection of active participants in the NEAR ecosystem, aiming to maintain the stability of the ecosystem. Aurora highlighted that Wintermute’s activities were incongruent with the USNPP’s objectives, leading to the rejection of their request.
ABL maintained that their decision was appropriate and aligned with the USNPP’s purpose and terms of use. The statement from ABL and NF underlined their commitment to upholding the integrity of the programme and protecting the interests of the NEAR ecosystem and its participants.
The response serves as a clarification from ABL and NF, offering insights into the events leading up to Wintermute’s public allegations. It aims to provide a comprehensive understanding of the situation while maintaining a neutral stance.