Near Protocol has launched a new decentralized stablecoin called USN through its DAO, which is soft-pegged to the USD and has no reserves.
USN can be minted by depositing NEAR tokens, Near Protocol’s native cryptocurrencies, as collateral.
A team of DAO developers dubbed Decentral Bank is reportedly behind the development of the stablecoin together with Proximity Labs, a contributor to the DAO.
A representative from Proximity notes that USN, which Near Protocol recently announced as a work in progress, can be used to bootstrap liquidity for DeFi platforms.
The stablecoin will reportedly pay about a 10% annual yield from Decentral Bank, where the DAO will have to vote it through.
The yield will be generated from Decentral DAO’s revenue from the staking of NEAR tokens with the security validators, a process currently earning about a 10% return.
An Arbitrage system and a reserve fund are the mechanisms that Decentral DAO will apply to maintain the peg between USN and the dollar.
Source: THE BLOCK