Thread by @tomkowalczyk

$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.

@NEARProtocol 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

@NEARProtocol 👉 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

@NEARProtocol 💰 $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

@NEARProtocol @DcntrlBank 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)

@NEARProtocol @DcntrlBank 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.

@NEARProtocol @DcntrlBank 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

@NEARProtocol @DcntrlBank 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

@NEARProtocol @DcntrlBank 💵 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

@NEARProtocol @DcntrlBank 💵 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

@NEARProtocol @DcntrlBank 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

@NEARProtocol @DcntrlBank Possible improvements (authors opinion):

💡 greater collateral for $USN (many different stablecoins)

@NEARProtocol @DcntrlBank 🧬 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

@NEARProtocol @DcntrlBank @terra_money 👥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.

@NEARProtocol @DcntrlBank @terra_money 🎁 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-prot…)

@NEARProtocol @DcntrlBank @terra_money ⌨️ Developer perspective

👉 $USN smart contract has blacklisting feature: github.com/DecentralBankD…

💡 Address added to this list will not be allowed for swaps and transfers $USN

@NEARProtocol @DcntrlBank @terra_money 👉 $USN smart contract could be paused: github.com/DecentralBankD…

💡 The contract owner is able to pause it and do not allow for swaps and transfers for $USN holders

@NEARProtocol @DcntrlBank @terra_money 👉 $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

@NEARProtocol @DcntrlBank @terra_money You can read the unrolled version of this thread here: typefully.com/tomkowalczyk/u…