Original title: "Decentral Bank Launches $USN: a NEAR-native Stablecoin"
Original compilation: 0x9F, Rhythm BlockBeats
Original compilation: 0x9F, Rhythm BlockBeats
USN is NEAR's native stablecoin, soft-pegged to the US dollar, and backed by a reserve fund initially consisting of NEAR and USDT. Its core stability mechanism consists of on-chain arbitrage and a self-balancing reserve fund based on the principles of the Currency Board.
Combining the growth potential of UST and the strong anchor of FRAX, USN will be one of the most effective ways to guide liquidity in the NEAR ecosystem. At the same time, it also raised the utility of NEAR, a Token, to a new level.
The Decentral Bank DAO manages all aspects of the reserve fund and the main smart contract operation. The DAO can also vote to stake NEAR in the reserve fund, and distribute the rewards obtained from the stake to DeFi protocol users who support USN. At launch, Decentral Bank will receive funding from Proximity Labs to bootstrap initial USN liquidity on CEX and DEX.
The peg between USN and the US dollar is guaranteed by on-chain arbitrage and a self-balancing reserve fund. The core of the on-chain arbitrage mechanism is a smart contract that supports the two-way exchange of NEAR and USN without slippage and minimum commission. Once USN is unanchored, arbitrageurs will use the price difference between this contract and the trading platform to arbitrage until USN is re-anchored.
NEAR used to mint USNs will go into the Reserve Fund. The reserve fund adopts the Currency Board principle, and the automatic balance ensures that the asset reserve ratio of USN is greater than 100% at any time. Initially, USN was double-collateralized with NEAR and USDT. USDT will exist in NEAR's main DEX, Ref Finance and other CEXs, ensuring that USN is pegged to the US dollar in the open market. The stability design of USN allows Decentral Bank to repurchase all USNs ever issued in the worst case.
Starting from April 25th, users can use NEAR to mint USN through the core smart contract of the NEAR web wallet, or perform two-way exchange of USN and USDT on Ref Finance's StableSwap. During the initial launch, Decentral Bank will receive a grant to bootstrap liquidity in the USN/USDT pool on Ref Finance.
Decentral Bank DAO can vote to use the NEAR of the reserve fund for pledge, and the reward for pledge is the income automatically generated by USN. The $10M+ in staking rewards are distributed monthly to USN holders through NEAR and Aurora (NEAR's EVM layer) lending protocols such as Burrow, Aurigami, and Bastion. The APY of USN will vary according to the circulating supply and the size of the treasury, but the minimum is equal to the staking APY of NEAR (currently about 11%). The first batch of depositors (lenders) have the opportunity to earn more than 20% APY through additional incentives.
Original link
IOS
Android