Jul 30, 2020
What network is USDN based on for issuance, what are the advantages?
USDN is an algorithmic stablecoin based on NGK network. smart contract is used to simulate the central bank to increase or tighten the money supply to maintain the relative stability of the currency price. Compared with other stable currencies in the current market, USDN have three advantages, I will introduce for you in detail.
Through the optimization of technology and consensus algorithm, NGK.IO can achieve the performance of 5000+ TPS, 3 second block in the early stage of NGK network, which exceeds the vast majority of blockchains in the market. The future transaction rate parallel processing can be up to millions of TPS, so that fully meet the needs of the vast majority of commercial landing applications. The USDN based on NGK network distribution can be said to be very promising in the future of commercial applications, and decentralized distribution to avoid trust crisis.
Different from most of the stablecoins issued in the market, the USDN is issued by decentralization, and the response of the core algorithm is adopted, rather than a single fixed rule.
Through the establishment of smart contract, USDN can calculate and adjust the USDN token supply according to the market price ratio of USDN token price to dollar price through protocol algorithm. stablecoin USDN abandoned the mortgage model, but will establish a monetary control mechanism similar to the central bank, to achieve through the algorithm.
USDN smart contract code is open and transparent, which prevents the stablecoin issuer from issuing stablecoin at will, thus affecting the market situation. In the encrypted money market, it will naturally be favored by users and the market.
Smart contracts stabilize currency prices, constant anchored currencies
The smart contract algorithm anchors the dollar. In order to restrain the premium in the market, USDN smart contract stabilization algorithm adds two mechanisms: bond voucher and equity index to USDN, in which bond voucher is used to issue or destroy USDN voucher, and USDN equity index is used to reward all equity index holders when issuing additional shares. Using these two mechanisms, USDN smart contracts can react quickly when there is a premium in the market, issue or destroy USDN, thus eliminating the premium.
The issued USDN in NGK.IO is not only convenient in application, excellent in performance, but also stable in the market with decentralized distribution and management.
