Long Overview
Last updated
Last updated
The USDN long-only perpetual is the first decentralized trading platform that allows users to place market orders and trade with leverage in a fully decentralized environment. Here are the reasons why this platform is truly innovative and offers unique advantages:
The USDN perpetual allows users to trade with in a decentralized and environment, eliminating the need for centralized platforms and reducing the risks and opacity associated with centralized fund management.
The USDN perpetual is deployed directly on Ethereum’s Layer 1, meaning that all transactions and positions are executed and recorded transparently and immutably on the Ethereum blockchain. By leveraging Ethereum’s decentralized infrastructure, the benefits from the security, resilience, and reliability of one of the most robust and proven blockchain networks in the industry.
Unlike other platforms, the USDN long-only perpetual does not use complex or unfair liquidation mechanisms. This means that users are not at risk of losing their positions unexpectedly. Everything is transparent and happens directly on the blockchain, ensuring that liquidations always occur at the price they should, without surprises or manipulation. Users know exactly when their positions will be liquidated, providing a fairer and more predictable trading experience.
As previously mentioned, at this time, all positions in the USDN protocol are in (Lido's wrapped staked ETH). This approach allows the protocol to capture the yields generated by ETH staking, benefiting both the and the . For longs, the yield from staking ETH is redistributed by way of increasing the intrinsic price of the wstETH asset. In other words, the yield generated by the Lido protocol makes the price of wstETH go up relative to the ETH price, creating a gradual profit for long position holders (we will explain this mechanism in more detail in the section). When displaying the perpetual in terms of the ETH underlying the wrapped staked token, this yield can be visualized as a reduction of the paid by long side users.
The USDN perpetual offers a guaranteed feature, allowing users to set precise price levels at which their positions will automatically be closed. Unlike other platforms where stop-loss orders are not always honored during high volatility or rapid market movements, our protocol ensures the execution of stop-loss orders exactly at the price set by the trader.
This is made possible through our fully on-chain approach, utilizing on Ethereum. Each order is programmed and executed transparently and immutably by the smart contract, eliminating any risk of manipulation or unfair slippage. Even under volatile market conditions, users are protected from excessive losses, knowing their position will be liquidated at the price they selected.
With the USDN perpetual, what you see is what you get, thanks to the security and transparency of smart contracts. This is a true innovation in decentralized trading, ensuring an unparalleled level of trust and reliability.
The USDN protocol is designed to protect traders from market manipulation and liquidation hunting, which are common on centralized exchanges like Binance and others. On such platforms, large players known as "whales" can stealthily manipulate the price of an asset to trigger the liquidation orders of many traders, causing forced liquidations for their own benefit.
As a result, traders are protected from unfair price movements and forced liquidations, ensuring a more equitable and transparent trading environment.
However, with the USDN perpetual, this type of manipulation is impossible. Our protocol uses decentralized to obtain asset prices. These oracles aggregate price data from multiple sources across the market, providing an accurate and resilient average. With this approach, artificial price fluctuations created by a few actors cannot influence the reference price used by our protocol.