The price of USDN in the stable currency system of NGK common chain sometimes fluctuates by a certain margin. as we will see USDT sometimes it will be $0.99 and sometimes $1.01. Hence, to ensure that the price of USDN in the secondary market is basically stable, how to adjust supply and demand?
USDN supply and demand regulation
As USDN demand falls and supply exceeds demand, its prices fall. Suppose the USDN price has fallen from $1 to $0.98, and for investors, there is a incentive to buy these USDN, investors can use their own USDN currency to buy bond vouchers, the system will automatically destroy this part of the USDN currency in circulation, resulting in a reduction in the number of USDN in circulation.
For the same reason, assume that USDN prices rise to $1.02, that is, market investors increase. USDN supply and demand regulation in theory will make its price tend to callback. Smart contracts automatically issue USDN circulating currency to meet the bond vouchers in the market, and the bond vouchers held by investors will be automatically converted into USDN circulating currency at 1:1. The system will reward holders of USDN equity indices (proportionally according to the number of shares held) according to the smart they still need to issue additional USDN after paying all the bonds in the market ）
In the actual situation, due to the market self-regulation will have a certain delay, its effect is not easy to be accurately predicted. Therefore, when market behavior does not work for a long time, investors need to take the initiative to govern it.
USDN maintains price stability through smart contracts may seem simple on the surface, but in the secondary market, maintaining its stability requires a series of more macro market mechanisms and community governance.
