Everything you should know about $USN stablecoin

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$USN everything you should know ✅ or ❌ ?

$USN is a soft-pegged #stablecoin on @NEARProtocol The main purpose to have stablecoin on protocol is to help grow #TVL and increasee #liquidity.

How to get $USN ❓ 👉 swap $USN for $NEAR on: swap.decentral-bank.finance/ 👉 wrap $NEAR to $wNEAR on: app.ref.finance/ 👉 swap $wNEAR for $USDC on: app.ref.finance/

👉 bridge $USDC from NEAR to $USDC on Ethereum on: rainbowbridge.app/transfer 👉 You can bridge assets between NEAR Protocol and other blockchains using: allbridge.io/

💰 $USN yield The DAO behind @DcntrlBank can stake their $NEAR from Reserve Fund and generate around 11% APY Every stablecoin has its own stability mechanism, $USN has two: 👉 Onchain swap 👉 Reserve fund

1️⃣ Onchain swap 1/2 Tool is available here: swap.decentral-bank.finance/, it allows for swaps and every time swap is happening: 👉 send $NEAR to smart contract return worth of it in $USN 👉 send $USN to smart contract return $NEAR worth of $USN (arbitrage opportunity)

1️⃣ Onchain swap 2/2 All of the $NEAR sent to #smartcontract are not burnt just sent to NEAR Treasure to generating staking rewards, no new $NEAR's are minted if $USN is sent to smart contract, $NEAR's are returned to sender from the pool.

2️⃣Reserve fund 1/2 Rreserve fund is built into the system from the beginnig and it is double collaterized ($NEAR and $USDT), 1B USN is collaterized in: 👉 1B worth of $NEAR 👉 1B $USDT

2️⃣Reserve fund 2/2 Stableswap on ref finance works similar to curve.fi (dedicated AMM algorithm for stablecoin swaps), the initial pool of USN/USDT put by NEAR: everytime $USN is swap for $USDT, $USDT is added to the pool

💵 Treasure management 1/2 👉 sell stablecoin to get $NEAR 👉 sell $NEAR get stablecoin Important here is the relation between $NEAR and $USN: more $NEAR is added to the treasure, when: 👉 people swap $NEAR for $USN 👉 reserve fund sells $USDT for $NEAR

💵 Treasure management 2/2 more $USDT is added to the treasure: 👉 people swap $USDT for $USN (stableswap on ref finance) 👉 reserve fund sells $NEAR for $USDT

Death spiral is possible: People mint a lot of $USN when the $NEAR price is stable, when the $NEAR price is digging and the MCAP of $USN is bigger than MCAP of $NEAR. Protection is: 👉 reserve fund (buy $NEAR for $USDT from treasure) 👉 treasure management

Possible improvements (authors opinion): 💡 greater collateral for $USN (many different stablecoins)

🧬 Differences from @terra_money: 👉 no tools like Anchor Protocol (yet?) 👉 11% of $USN yield comes from $NEAR staking and reserve fund 👉 bigger collaterizaton 👉 hyper inflation not possible here onchain swap does not mint new $NEAR when swap for $USN

👥Owners The NEAR Foundation is not responsible for $USN. $USN is an independent project, led by a team named Decentral Bank, which is organized as a DAO. @DcntrlBank It is collaborating with Proximity Labs, which is a DAO contributor.

🎁 Added value $USN helps reduce selling preasure to $NEAR 👉 NEAR -> USDT higher slippage (DEX) 👉 NEAR -> USN -> USDT less slippage (stableswap), $NEAR will be staked not sell on open market Staked value of NEAR is available to watch here: (stakingrewards.com/earn/near-protocol/)

⌨️ Developer perspective 👉 $USN smart contract has blacklisting feature: github.com/DecentralBankDAO/usn/blob/main/src/lib.rs#L55 💡 Address added to this list will not be allowed for swaps and transfers $USN

👉 $USN smart contract could be paused: github.com/DecentralBankDAO/usn/blob/main/src/lib.rs#L66 💡 The contract owner is able to pause it and do not allow for swaps and transfers for $USN holders

👉 $USN smart contract is not locked: explorer.near.org/accounts/usn 💡Locked contract means that there are no access keys allowing the contract code to be re-deployed (changed). $USN smart contract owner is able to change its implementation