Public blockchain Near algorithm stablecoin USN debuts, with development team Decentral Bank expected to provide 11% annualized return.

The emerging public blockchain Near has garnered a certain level of support from the crypto community and institutions. Taking cues from the success of UST/LUNA in algorithmic stablecoins, Near had previously hinted at launching its own algorithmic stablecoin, USN, minted by the native token NEAR. On the 26th, the development team Decentral Bank officially announced this plan with a minimum annualized return of 11%.

USN Minting Now Available

Official sources have announced that users can mint USN from NEAR using the NEAR web wallet, as well as exchange USN for USDT on Ref Finance.

Revenue Streams

Decentral Bank DAO has stated that they can vote to stake NEAR from the reserve fund, meaning USN will receive NEAR staking rewards as income.

Officials believe that through lending protocols such as Burrow, Aurigami, Bastion, over $10 million in revenue will be distributed to USN holders each month.

It is noted that the annualized return of USN will be influenced by circulation supply and treasury size, but will yield a minimum of around 11% from NEAR staking rewards. With additional reward mechanisms, it is possible to achieve over 20% annualized return.

Will the LUNA/UST Model Become a Must-Have for Emerging Public Chains?

The Terra ecosystem's algorithmic stablecoin model - burning native tokens, minting stablecoins, providing high annualized returns through lending protocols, and holding substantial reserves - has propelled it to become the third-largest stablecoin. This model has attracted public chains like Waves, Tron, Near, and others to adopt it, serving as another means, following the provision of ecosystem funds to attract developers, to bring in funds and popularity for public chains. Due to its strong connection with the native token of public chains, it is quite attractive to investors if the strategy succeeds.

However, whether it's UST or USN, stablecoins maintained through locked funds, financial products, lending, and subsidies, are still considered high-risk assets by many.