The mission of the USDN, endorsed by the NGK strategy, is to address the needs of individual users for transactions and reserves. While the high volatility of cryptocurrency is considered an obstacle to the widespread adoption of digital assets, the value of stable currencies is increasingly popular in the market.
Unlike most stable coins on the market, which obtain anchoring relationships by mortgaging dollars to institutions (example: USDT), USDN gives up the traditional mortgage method and use chain smart contracts to achieve algorithmic stability. The former means that once the value of the dollar is lost, the stablecoin itself will lose value, which is undoubtedly a huge test. And USDN let the market participants get the endorsement of algorithm stability, its security is more stable.
USDN, as a stablecoin endorsed by smart contract algorithm, can solve the volatility and stability of traditional encrypted currency and provide a stable means of exchange and the value of digital storage. The USDN, launched NGK blockchain can open up currency restrictions between different countries and regions, direct dollar anchoring can reduce exchange losses and processes, break the wall of encrypted currency and traditional currency dimension, and the flow of funds is more free and convenient.
As a stablecoin, USDN supports convertibility and settlement based on different digital currencies, which can be used in future exchanges as a medium of convertibility. At the same time, the USDN is designed to anchor a dollar currency at 1:1, a stable value that makes financial operations and asset management more robust and secure.
Cross-border e-commerce is expected to be a landing scene for USDN applications, according to NGK blockchain leader. At present, at the payment level, the cost of French currency exchange and overseas payment is too high, the handling fee of cross-border shopping transactions is high, the backstage process is cumbersome, and the overall efficiency is too low, which greatly hinders the development of cross-border e-commerce. At the same time, cross-border trading enterprises need to pay 2–3% of the formalities fees to third-party institutions, resulting in their own profit reduction. In cross-border settlement, the cost of exchange of French currency is extremely high, it is impossible to obtain preferential exchange rate, and the information filling is cumbersome, which also increases the labor cost.
USDN is highly consistent with the USDT idea in the ecological construction of digital currency, but USDN more robust and safe from the construction of stablecoin system.
