USN Algorithmic Stablecoin Launched on Near Network

The developers of Near Protocol have launched an algorithmic stablecoin USN pegged to the US dollar and backed by the native NEAR token. It will be managed by DAO Decentral Bank.

Meet $USN, the first NEAR-native stablecoin by Decentral Bank!

Starting today, users can mint $USN using $NEAR through the NEAR web wallet (https://t.co/Kc7Tr4M7B8). Users can also swap between $USN and $USDT on @finance_ref‘s StableSwap. pic.twitter.com/ZacQNGaTOV

— Decentral Bank (@DcntrlBank) April 25, 2022

The pegging to the rate will also be provided by the reserve fund from NEAR and USDT. Its size will be determined in the future.

Users can exchange USN for USDT on the Ref Finance platform.

Rumors about the upcoming launch of the token appeared on April 4th. Then one of the users found in the interface of the Ref Finance protocol a mention of a token with the corresponding ticker.

Check Also: What is RSR Crypto Price Prediction 2022, 2025 & 2030?

USN is similar in its working mechanism to TerraUSD (UST) , Frax Finance (FRAX) , USDB and USDD .

The stablecoin will help raise additional liquidity for projects operating in the DeFi ecosystem like Ref Finance, Burrow, Aurigami and Bastion.

Decentral Bank’s proceeds from staking NEAR in the reserve fund will generate a minimum annual return to USN holders. At the moment it is ~11% per annum.

🏦What is Decentral Bank?

DAO managing the $USN Reserve Fund & main smart contract operations. The DAO can vote to stake $NEAR from the Reserve Fund, meaning $USN will automatically generate yield based on NEAR staking rewards. Thus, minimum $USN yield = NEAR staking APY (~11%).

— Decentral Bank (@DcntrlBank) April 25, 2022

APY may vary depending on the volume of issue and the size of the reserve fund. The first participants will probably be able to count on 20% per annum or more. The increase in the indicator will be ensured by monthly payments by landing protocols from the ecosystem after the voting of DAO participants.

🤔 $USN yield?

With the DAO vote, $10m+ in rewards will be distributed monthly via lending protocols such as @burrowcash @aurigami_PLY @BastionProtocol. Though APY can change depending on circulating supply & Reserve Fund size, the first lenders will likely receive 20%+ APY

— Decentral Bank (@DcntrlBank) April 25, 2022

NEAR’s price has risen by 8% in the last 24 hours, according to CoinGecko . This is the third result in the top 20 after Dogecoin (+29.1%) and Terra (+8.4%).

Recall that in March 2021, Do Kwon accepted the challenge of $11 million from users who questioned the stability of the LUNA price, which ensures the stability of UST.

By mid-April, UST-affiliated non-profit organization Luna Foundation Guard had $2.44 billion in reserves , of which 70% was in bitcoin. The rest are on USDT, USDC and LUNA.

Previously, UST outperformed Binance USD in terms of market capitalization.