SMARDEX USDN USDN Price

What is SMARDEX USDN (USDN)?

SMARDEX USDN $USDN is a decentralized finance (DeFi) protocol designed to address the limitations of traditional stablecoins by introducing a fully decentralized, yield-bearing synthetic dollar token. The project aims to combine dollar-like stability with yield generation, eliminating dependencies on centralized exchanges (CEXs) and custodial intermediaries. Users interact directly with smart contracts to mint or redeem $USDN tokens and open long perpetual positions.

The protocol leverages Lido wrapped staked ETH (wstETH) as its underlying asset, combining staking rewards with the protocol's yield. This innovative approach ensures economic viability and gas efficiency while maintaining full decentralization and transparency.

Key Features

Yield-Bearing Synthetic Dollar Token

SMARDEX USDN $USDN introduces an algorithmic yield-bearing synthetic dollar token that provides stability and yield generation. This token is backed by decentralized structured products, ensuring transparency and eliminating reliance on centralized entities.

 

Decentralized Long Perpetual Futures Trading Platform

The protocol includes a decentralized platform for long perpetual futures trading. This platform allows users to open leveraged positions, with the underlying asset deposited to mint $USDN tokens serving as liquidity.

 

Vault and Long Side Architecture

The protocol is built around two main components:

Vault: Holds the underlying assets necessary to back the value of $USDN tokens. For example, if the total supply of $USDN is 1000 and the price of wstETH is $2000, the vault balance would be 0.5 wstETH.

Long Side: Holds the underlying assets corresponding to the value of all long perpetual positions. Any changes in the long side balance due to asset price fluctuations or funding fees are offset by equal changes in the vault balance.

 

Liquidation Mechanism

The protocol employs a robust liquidation mechanism to manage leveraged trading risks. Liquidations are incentivized with rewards for liquidators, ensuring timely execution and reducing potential negative effects on the protocol.

 

Dynamic Funding Fees

To maintain balance between the vault and long side, the protocol charges funding fees to the side with higher trading exposure. These fees are paid to the smaller side, incentivizing depositors and ensuring equilibrium.

 

Skew Factor for Market Alignment

A dynamic skew factor is introduced to align the funding rate with the market's accepted interest rate when the protocol is balanced. This ensures that funding fees remain economically viable and competitive.

 

Use Cases

Stable Yield Generation: $USDN provides users with a stable, yield-bearing asset that combines the benefits of dollar stability with staking rewards.

Decentralized Trading: The protocol's long perpetual futures trading platform enables users to engage in leveraged trading without relying on centralized exchanges.

Transparent and Decentralized Finance: By eliminating custodial intermediaries, SMARDEX USDN $USDN ensures full transparency and decentralization, addressing the limitations of traditional stablecoins.

Founders, Backers, and Partners

The SMARDEX USDN $USDN protocol was developed by a team of blockchain experts, including Jean Rausis and Eric Rabl, who serve as Co-CEOs. The blockchain team comprises Lilyan Bastien, Valentin Bersier, Yoan Capron, Sami Darnaud, Nicolas Decosterd, and Paul-Alexandre Tessier. Their combined expertise in blockchain technology and decentralized finance has been instrumental in creating this innovative protocol.

Conclusion

SMARDEX USDN $USDN represents a significant advancement in the DeFi ecosystem by addressing the limitations of traditional stablecoins and introducing a fully decentralized, yield-bearing synthetic dollar token. With its innovative architecture, robust features, and commitment to transparency, the protocol is poised to become a cornerstone of decentralized finance.

What is unique about SMARDEX USDN (USDN)?

SMARDEX USDN $USDN introduces a fully decentralized, yield-bearing synthetic dollar token, eliminating reliance on centralized exchanges and custodial intermediaries.

Who are the founders of SMARDEX USDN (USDN)?

The founders are Jean Rausis and Eric Rabl, who serve as Co-CEOs.

Where can I buy SMARDEX USDN (USDN)?

 Curve (Ethereum)