What is USDN?
The initial DEX offering (IDO) of the WX token will be based on USDN, the Wave’s ecosystem main stablecoin. Users will be able to buy WX for USDN.
In this post, we’ll take a closer look at USDN, the flagship stablecoin in the Waves ecosystem.
What is USDN?
USDN (or Neutrino Dollar) is an algorithmic stablecoin in the Waves ecosystem, pegged to the US dollar, which means that its value is linked to that of the US dollar with a 1:1 ratio. The USD peg protects USDN holders from volatility in the crypto markets.
Built on Neutrino, Waves’s stablecoin protocol, USDN was launched in late 2019. USDN’s price stability is regulated by the Neutrino protocol’s algorithm and backed by WAVES held in the smart contract. Anyone can audit the smart contract and make sure that all of the above is true.
One important advantage of USDN in comparison with other stablecoins is its multi-chain functionality. Unlike many other stablecoins, USDN is available, in addition to the Waves blockchain, on Ethereum, Binance Smart Chain (BSC), and Polygon, so users don’t have to pay fees for transferring their tokens between networks, they can buy USDN directly within those networks. In addition to this, Users’ USDN are automatically staked with compound percentages, which brings them a passive staking APY of 12–15%.
According to CoinMarketCap, as of early October 2021, USDN’s market cap was $565 mln. According to the smart contract, the USDN TVL (Total Value Locked), which is the total amount of funds blocked in the smart contract, is equal to $1.5 billion. In other words, the USDN supply is overcollateralized and the surplus is 167.53 %. This makes the USDN token stable and reliable.
How to get USDN?
You can buy USDN with your credit or debit card on Waves.Exchange.
In addition, you can trade USDN for other crypto on a number of popular centralized and decentralized crypto exchanges, including:
USDN staking
USDN holders can take advantage of the protocol’s unique staking functionality based on the Waves blockchain’s economics. USDN staking’s average annual yield is around 12–15%, with USDN-denominated interest paid daily. Other investment products based on USDN pay an even higher yield.
USDN staking is based on the Waves monetary policy’s reward system and the LPoS consensus algorithm. Staking rewards in USDN are distributed proportionately to a user’s share of the total USDN supply. This mechanism is different from most other DeFi instruments generating high yields through borrowing, in which you put your assets at a risk of liquidation.
In addition to Waves.Exchange, you can stake USDN directly on several platforms, including:
You can learn more about USDN staking and start earning here.
