USDN Stablecoin

The ceiling price of USDN is $1.10, as users can always deposit the equivalent of $110 of collateral to mint $100 worth of USDN. If USDN is trading above $1.10, a profit could be made by selling USDN on the market.

To establish a floor price for USDN, there are two different mechanisms. If a user has a loan and finds USDN to be below $1, they can repay their loan at a lower price by buying more USDN, in turn stabilizing the price of USDN. Alternatively, they can redeem their USDN.

USDN is supported by the following collateral types: ETH, tETH, SOL, ezSOL, jitoSOL, TIA and stTIA

Price ceiling

There is a hard price ceiling for USDN at $1.1 which can be explained as follows:

• Let's assume USDN trades at 1.12 USDC and that you have 1000 USDC. We'll assume SOL price is at 50/USDC

• With 1000 USDC you buy 20 SOL

• With that you deposit into a Neptune vault and mint 909.09 USDN (the max possible at 100% collateral ratio).

• You sell the 909.09 USDN on the market for 1018.18 USDC. (909.09 * 1.12)

• You started with 1000 USDC and now have 1018.18 without ever needing to repay your vault. In the process you made 18.18 USDC profit