# Vault Side

The vault side allows users to gain exposure to a [synthetic dollar](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#synthetic-dollar) while benefiting from potential [yields](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#yield), unlike traditional stablecoins. The [vault](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#vault) 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 [wstETH](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#wsteth-wrapped-staked-ether) from Lido.

By depositing their assets into the protocol, users can [mint](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#mint) an equivalent USD value in the [USDN token](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#the-usdn-token). 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 [funding rates](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#funding-rate). Thanks to an automatic rebalancing mechanism, the protocol maintains equilibrium while offering yield opportunities.

<figure><img src="/files/lmOUFiup5sgkOEc4TSnJ" alt=""><figcaption></figcaption></figure>


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