The USN Stablecoin Is Now Available On The Near Protocol.
According to a statement shared by Proximity Labs, a decentralized stablecoin named USN has launched today on Near Protocol, a scalable Layer 1 blockchain.
The launch validates earlier allegation that the stablecoin was in the works. The stablecoin is a decentralized stablecoin comparable to TerraUSD (UST) and Frax Finance (FRAX), both of which are softly tied to the US dollar but do not have dollar cash reserves. The USN stablecoin can be created by depositing collateral in NEAR tokens, the Near blockchain’s native crypto asset.
The stablecoin is being led by an independent team named Decentral Bank, which is organized as a DAO. It is collaborating with Proximity Labs, which is a DAO contributor.
According to a Proximity spokesman, USN can be used to bootstrap liquidity for DeFi protocols. Ref Finance, Burrow, Aurigami, and Bastion are just a few of the protocols that call Near home. The USN stablecoin has been decided to be integrated into these protocols.
Decentral Bank will pay a 10% annual yield on the stablecoin. The DAO will have to vote it through to get this process started.
This payout will come from Decentral DAO’s revenue through native staking of NEAR tokens with security validators, which presently pays out at 10%.
In addition, the USN’s dollar peg will be supported by a few stability procedures in the Decentral Bank DAO. The first is an arbitrage scheme that will strive to keep the USN stablecoin’s NEAR token value around one dollar. The second is the DAO Treasury’s “reserve fund,” which is made up of NEAR and USDT tokens. The amount of money that will be spent on this fund is still undecided.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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