The long-awaited USN stablecoin from Near Protocol has now arrived on the mainnet. The stablecoin launch has been led by a DAO named Decentral Bank.
According to a statement released by Near’s DeFi arm Proximity Labs, a decentralised stablecoin named USN was created today on the Near Protocol, a scalable Layer 1 blockchain. This account address may be used to access the Near stablecoin via the official blockchain explorer.
According to The Block, the stablecoin was already in development. Like TerraUSD (UST) and Frax Finance (FRAX), USN is a decentralised stablecoin comparable to others that are soft-pegged to the US dollar but don’t hold dollars in currency. By depositing NEAR tokens (the native crypto asset of the Near blockchain) as collateral, a stablecoin called USN may be created on the Near network
The USN stablecoin endeavour is being headed by a DAO-based organisation named Decentral Bank. It is partnering with Proximity Labs, a contributor to the DAO, on this project.
A spokeswoman for Proximity suggested that USN might be a good approach to get Defi protocols up and running. Ref Finance, Burrow, Aurigami, and Bastion are just some of the protocols that call Near home. The USN stablecoin will be integrated into these protocols.
There will be a yearly dividend of around 10% on the USN stablecoin from Decentral Bank. The DAO will have to vote this through in order for this process to begin.
Currently, Decentral DAO earns the same 10% return on native staking of NEAR tokens with security validators, which will be used to fund this dividend. The return will fluctuate according to on how much NEAR is staked and how much the tokens are worth.
Additional stability measures will be built within the Decentral Bank DAO to sustain the USN’s dollar peg. As a first step, a mechanism of arbitrage will be implemented to attempt to keep the USN stablecoin at a price of one dollar each NEAR token. The DAO treasury holds NEAR and USDT tokens in a “reserve fund” as well. How much money will be spent on this fund is yet to be determined.
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