Launch event of USDN accompanied by a new "points" campaign, providing users with additional ways to earn interest or receive rewards in the future.
Noble has officially launched the much-anticipated interest-bearing stablecoin USDN, according to the company's announcement. This launch is accompanied by a new "points" campaign, offering users an alternative way to earn interest.
USDN is part of a new trend in stablecoins, designed to pay interest to holders. This token automatically passes on the profits from holding short-term U.S. Treasury bonds to developers, application builders, validators, wallets, and exchanges that support it, "creating a new model to adjust the incentive dynamics," according to the development team.
This differs from the predominant model of fiat-pegged cryptocurrencies like USDT and USDC, which generate profits for the companies behind them but not for users. For example, Tether has earned over $13 billion in profits over the past year from its reserve income, including U.S. government bonds.
According to the press release, USDN holders can currently earn around 4.15% APY. However, this rate will fluctuate based on the collateral assets of U.S. Treasury bonds. The token will be initially supported in the Keplr Wallet and can be purchased with a credit card through Moonpay.
USDN is built on the $M framework of M^0, a relatively new framework for issuing customized stablecoins. This Ethereum-based platform provides "stablecoin scaling tools," allowing developers to use the standard M^0 stablecoin, $M, as a "ready-made middleware."
Meanwhile, Noble's points program will focus on two combined tools: USDN Staking and Flexible Vault. Depositors can lock their USDN in the Staking Vault for up to four months, forfeiting interest to accrue points, while the Flexible Vault offers "higher interest rates" paid out of the forfeited interest.
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The article Noble's USDN stablecoin on Cosmos has been launched first appeared on CoinMoi.
