The Interpretation of USDN: a stablecoin with unlimited prospect based on the NGK Blockchain
The emergence of stablecoin provides solutions for the acceptance of different cryptocurrency assets and transactions in different scenarios. It has played an important role whether in a form of transactions, trading pairs, over-the-counter transactions, or the realization of the transaction application scenarios such as DAPP. The key is to ensure that the value and price are constant under the premise of completing the currency pricing.
Following the rise of market demand for stablecoin, many projects have started to participate. Among them, the USDN is an algorithmic stablecoin issued by the NGK Blockchain, with its smart contract algorithm, it establishes a complete closed loop business for the blockchain ecology and realizes the payment and flow from a variety of application scenarios.
In the circulation process of USDN stablecoin, it is necessary to establish a closed loop composed of platforms, acceptors, demanders, etc. to ensure that the circulation is becoming a cycle and stimulates a larger market scale.
For example, when the USDN is issued, there must be an acceptor first. The acceptors have no special restrictions and they are mainly people or organizations that can accept large amounts and provide USDN asset acceptance services for others.
The acceptors can exchange USDN by collateralizing their NGK assets, and then sell the USDN stablecoin to the users on the platform through a transaction in the exchanges or the other trading channels.
In the exchange, if more USDN transactions need to be realized, the exchange needs to launch more USDN-based trading pairs to ensure the multi-directional flow of multiple cryptocurrency assets.
While there are many types of stablecoins, most stablecoins are a ledger system based on destruction. The protocol is the core of this system. The protocol is an open source. Thus, the participating roles can be connected to the protocol and then implemented on their own platform. The issuance agreement of USDN is based on the NGK Blockchain. Just like the flow of assets on the chain, the USDN is designed to serve the purpose of decentralization and transparency. Besides, USDN has an adequate programmability, and projects that can be developed based on the NGK Blockchain’s protocol can seamlessly connect to USDN. For other stablecoins developed by the above-level contracts, USDN has a leading advantage in the financial applications.
USDN stablecoin can promote the ecology in the NGK Blockchain. As long as the USDN stablecoin has a sufficient trading volume, a virtuous circle between the two tokens can be realized. Since the development of NGK, many effective solutions and operational strategies have been implemented. The back-up support of USDN is no longer a problem and has more advantages.
Stablecoin may be one of the key attempts in the development of the cryptocurrency industry. Once the market matures, USDN will achieve a win-win situation with the NGK’s ecosystem.
