Stablecoin is a kind of digital currency, but the difference with mainstream currency is that it can maintain the relative stability of currency price by anchoring legal currency and encrypting assets. When it comes to stablecoin, we usually introduce three modes: legal currency custody mode, digital asset mortgage mode and unsecured algorithm. Among them, algorithmic stablecoin is the largest and most mysterious kind of imagination. After all, using computer code to control currency issuance in an economy without the control of any central institution, coupled with intelligent attributes, is an attractive technology.
Different from the legal tender escrow 1:1 to generate the corresponding stablecoin and the digital asset pledge to lend out the stablecoin, the algorithm stablecoin pursues the unsecured issue. Without asset endorsement, how to protect the value of its issuing currency? The algorithm stabilizes the coin to increase supply when the price of the stable coin is higher than $1. When the stable coin price is less than $1, recycle the supply. USDN is such an algorithmic stable coin.
USDN is the stablecoin created by NGK blockchain through intelligent contract. The market circulation determines the total amount of USDN and automatically issues or destroys it according to the market demand. When the demand for stablecoin increases and its price is greater than that of anchored dollar (E>1), the stablecoin is destroyed.
USDN can be used for the value reserve and value exchange of all contracts in the blockchain, or for the promotion of the NGK blockchain, USDN can also be used to purchase the block producer computing power to participate in the block producer mining mechanism. Moreover, USDN has achieved a favorable media relationship in blockchain applications, and there will be more DAPP applications in the NGK to use USDN for transactions. DAPP businesses or enterprises can employ USDN to solve global user payment problems and circulation problems between industries.
USDN is a new type of stablecoin combined with operational ability. When the mortgage endorsement is lost, the market liquidity is its endorsement, and the algorithm mechanism is the guarantee of value when there is no liquidity. Through the transparency of intelligent contracts to witness USDN stability, balance, openness and transparency, when everyone is still thinking about the future of stable coins, USDN has formed the most solid trust system in the digital market.