# WUSDN

* [Source Code](https://github.com/SmarDex-Ecosystem/usdn-contracts/blob/main/src/Usdn/Wusdn.sol)
* [Deployed Contract](https://etherscan.io/address/0x99999999999999cc837c997b882957dafdcb1af9)

### What is Wrapped USDN (wUSDN)?

It's an [ERC-20](https://eips.ethereum.org/EIPS/eip-20) value-accruing token wrapper for the [USDN token](https://docs.smardex.io/ultimate-synthetic-delta-neutral/glossary#the-usdn-token). Its balance does not change with each oracle report, but its value in USDN does. Internally, it represents the user's share of the total supply of USDN tokens.

### Why use WUSDN? <a href="#why-use-wsteth" id="why-use-wsteth"></a>

wUSDN is mainly used as a layer of compatibility to integrate the USDN token into other [DeFi](https://docs.smardex.io/ultimate-synthetic-delta-neutral/glossary#decentralized-finance-defi) protocols that do not support rebasable tokens, especially bridges to L2s and other chains, as [rebases](https://docs.smardex.io/ultimate-synthetic-delta-neutral/glossary#rebase) don't work for bridged assets by default.

### How to use WUSDN? <a href="#how-to-use-wsteth" id="how-to-use-wsteth"></a>

The contract can be used as a trustless wrapper that accepts USDN tokens and mints wUSDN in return. When the user unwraps, the contract burns the user's wUSDN and sends the user locked USDN in return.

{% hint style="info" %}
At any moment, any amount of USDN can be converted to wUSDN via a trustless wrapper and vice versa, thus the tokens effectively share liquidity.
{% endhint %}