NEAR Protocol Launches Decentralised Stablecoin ‘USN’ to Compete with UST

April 27, 2022, 11:30 AM AEST - 3 weeks ago

The highly anticipated decentralised stablecoin USN has launched on the Near protocol with Decentral Bank, an independent team, taking the lead in the stablecoin initiative:

USN Stablecoin Goes Live

USN is a stablecoin designed in similar fashion to TerraUSD (UST) and can be minted by depositing NEAR tokens, the Near blockchain’s native crypto asset, as collateral. USN is led by Decentral Bank, a decentralised autonomous organisation (DAO), in collaboration with Proximity Lab, a DeFi-focused team in the Near ecosystem. USN does not pay as high a yield as previously thought, but still offers a 10 percent annual yield from Decentral Bank.

Additional Stability for USN

The Decentral Bank DAO will have a few stability mechanisms to support USN’s dollar peg, with the first being an arbitrage system that will try to ensure that the USN stablecoin trades around one dollar’s worth of NEAR tokens. The second stability measure is a “reserve fund” made up of NEAR and USDT tokens held by the DAO treasury. It is still unclear how much will be spent on this fund:

Stablecoins Should Be on the Lookout for TerraUST

In March, Terra co-founder Do Kwon outlined plans to buy US$10 billion in Bitcoin, which had a very bullish impact on the price of BTC. TerraUST also recently became the third-largest stablecoin, outranking Binance USD.

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