Quick Overview

Ultimate Synthetic Delta Neutral

USDN (Token)

The USDN token is the first synthetic U.S. dollar backed by a structured product utilizing a delta-Neutral strategy. Unlike traditional stablecoins, whose value is guaranteed by centralized entities, the value of a synthetic dollar is determined by a purely mathematical financial process.

Why Does the Market Need USDN?

Stablecoins represent a market with over $100 billion in circulation. However, they generally offer no yields to their users. SmarDex seeks to revolutionize this model by introducing the USDN token, a fully decentralized synthetic U.S. dollar that maintains a stable value, oscillating around the dollar's price while generating profits for its holders.

USDN Protocol

The USDN token relies on the "USDN protocol", a fully on-chain system based on the Ethereum blockchain. This decentralized protocol uses smart contracts to ensure the token’s stability and security, providing transparency and reliability for all users.

The functioning of the USDN protocol is based on the collaboration between two types of participants:

1. Those who expose themselves to the USDN token to benefit from its potential yield.

2. Traders who open leveraged long positions on the underlying asset.

This interaction between the two sides forms the USDN protocol, creating a delta-neutral structured product. Together, they ensure the stability of a synthetic U.S. dollar while generating attractive yields—all within a fully decentralized framework.

Thus, the USDN token, as a yield-generating synthetic dollar, should not be confused with the USDN protocol, the decentralized infrastructure that enables its stability and yield.