SmarDex Ecosystem
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USDN Protocol
USDN Protocol
  • Introduction
    • Quick Overview
  • THE USDN Protocol
    • Protocol USDN Overview
      • Simplified Examples
    • Protocol Balance
      • Imbalance Protections
      • Equilibrium: The Role of the Funding Rate
    • Vault Side
      • Vault Overview
      • Rebase Mechanism
      • Yields
        • Funding Rates
        • Yield-bearing asset
    • Long Side
      • Long Perpetual
      • Long Overview
      • Dip Accumulator
      • wstETH Collateralization
      • Liquidations and Minimum Position
    • Inside the Protocol
      • Protocol vs Market Fluctuations
      • 1. Providing a Price
      • 2. Calculating Long PnLs
      • 3. Applying the Funding Rate
      • 4. Liquidating Positions
    • Integration
      • WUSDN
    • Fees
      • Protocol Fees
      • Liquidation Fee
    • Protocol parameters
    • Oracles
    • Governance
    • Risks
    • SDEX
    • Addresses
    • FAQ
    • Glossary
  • PERIPHERY
    • Long farming
  • Whitepaper
  • Github
  • Audits
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  1. THE USDN Protocol

Vault Side

PreviousEquilibrium: The Role of the Funding RateNextVault Overview

Last updated 2 months ago

The vault side allows users to gain exposure to a while benefiting from potential , unlike traditional stablecoins. The operates with an underlying asset. An underlying asset is a financial instrument that serves as the basis for another financial product or derivative. In the initial deployment, the underlying asset will be from Lido.

By depositing their assets into the protocol, users can an equivalent USD value in the . The USDN token can be exchanged at any time for the corresponding USD value in the underlying asset. It allows users to gain exposure to the dollar while still earning yield from the yield-bearing token wstETH.

The USDN token holders also benefit from yields generated by . Thanks to an automatic rebalancing mechanism, the protocol maintains equilibrium while offering yield opportunities.

synthetic dollar
yields
vault
wstETH
mint
USDN token
funding rates