Trader.OA @OA__Trades - Twitter Profile

Let’s talk about $USDN, a fancy way to have stable dollars while earning yield (a.k.a. free money). 🥰 But where does that yield actually come from? Is it magic? Is it sketchy? Sir, what about LUNA????!! Let’s dive into how USDN generates yield and why it’s a secure and decentralized option (simplified). 👇 $USDN is the first ever fully decentralized synthetic dollar that maintains a value close to $1 while providing yield to its holders. The yield comes from two main sources: 1. Funding Rates from Traders Traders using the USDN protocol can open leveraged positions on Ethereum. To keep these positions open, they pay funding rates, which are essentially periodic fees. These fees are collected by the protocol and distributed to USDN holders as yield, and a small part of it is distributed to $SDEX holders. So, every time a trader pays to play, you, the USDN holder, earn. 2. Yield from Staked Ethereum (wstETH) USDN is backed by wrapped staked Ethereum (wstETH), which represents Ethereum staked via the Lido protocol, a team we collaborate with. Staking ETH through Lido generates staking rewards over time. As the value of wstETH increases from these rewards, the collateral backing USDN grows, providing an additional source of yield for USDN holders. These two sources of yield are reflected in the $USDN price. When the price goes up too much, new tokens appear in your wallet (and every holder too), stabilizing the price around $1, and distributing yield! Why USDN is Decentralized and Secure? 🔐 USDN is built on a fully decentralized protocol running on the Ethereum blockchain, ensuring that: - Transparency: Every transaction and operation is verifiable on-chain. You can see exactly how the system works without relying on any central authority. The SMARDEX cannot interfere and doesn't own the protocol. - Security: The protocol leverages Ethereum’s robust security features. Its smart contracts have been thoroughly audited to ensure they are safe and resistant to vulnerabilities. - Censorship Resistance: No one can freeze your funds or block transactions. The protocol is entirely decentralized, meaning there’s no single entity with control over it. TL;DR 🫡 USDN provides yield by combining fees paid by traders and rewards from staked Ethereum directly in your wallet, noneed to KYC, stake, lock, or whitelist. It's permisionless. Its decentralized design ensures transparency, security, and censorship resistance. You’re earning because traders are paying, and it’s all backed by one of the most trusted staking mechanisms in crypto. Simple, secure, and decentralized. The best alternative to centralized stablecoins. Mint your $USDN now on https://t.co/eJ31LvsV4U