SMARDEX Raises $4.5M in Public Seed Round for USDN, a Revolutionary Synthetic US Dollar

Montreux, Switzerland, December 9, 2024 — SMARDEX, a decentralized finance (DeFi) platform backed by Swiss Web3 pioneer RA2 TECH, has announced the official launch of USDN, a groundbreaking synthetic US Dollar token. After two years of intensive development and an impressive $12 million in investment, the platform’s public seed round has raised an additional $4.5 million in total value locked (TVL) within days of its launch.

USDN represents a major innovation in the world of decentralized finance. Unlike previous algorithmic stablecoins like Terra Luna, which were plagued by systemic risks, USDN is backed by a fully decentralized Ethereum (ETH) perpetual contract and uses a Delta Neutral strategy—a first for the crypto space. This strategy eliminates the risks associated with fluctuating assets and ensures the stability of USDN, offering a synthetic dollar token that remains pegged to $1.

A Delta Neutral Strategy for Stability

The core innovation behind USDN lies in its mathematically precise Delta Neutral strategy. The token’s value is stabilized by a balance between long and short positions on ETH within the SMARDEX platform. For every short position (betting against ETH’s price) there is an equally sized long position (betting on ETH’s price increase). This balance, controlled by a smart contract, ensures that no one side is more exposed than the other, thus maintaining stability for USDN.

For example, if ETH's price doubles, the long position generates a 100% return, while the short position incurs a 50% loss. However, since these gains and losses cancel each other out, the net result remains stable in USD terms, meaning USDN always maintains its $1 peg.

Jean Rausis, co-founder of SMARDEX, commented on the launch of USDN, saying: “We’re excited to introduce USDN, a synthetic dollar backed by a fully decentralized, risk-free strategy. After the collapse of Terra Luna, many feared that synthetic currencies were too volatile, but USDN changes the game by delivering both stability and decentralization.”

Yield Generation Without Third-Party Staking

One of the standout features of USDN is its ability to allow holders to earn yield directly from their wallets—without needing to stake or deposit funds with a third party. Using an automatic rebase mechanism, USDN holders can generate passive income as their balances grow seamlessly over time. This breakthrough adds an additional layer of innovation to the USDN platform, providing users with a new way to passively earn on their holdings.

A Strong Start with Rapid Adoption

Following the launch of the public seed round, the demand for USDN has been overwhelming. Within just 45 minutes of the announcement, $1 million in TVL was locked. This rapid adoption continued, with $3 million in TVL locked within the first 24 hours. The public seed round was conducted through sUSDN, a sub-token of USDN, which can be staked to earn substantial yield through the SMARDEX website.

RA2 TECH, which has invested $12 million in the development of SMARDEX, views the rapid market response as validation of the platform’s potential. According to Rausis, “The positive market reaction shows that there is a clear demand for a stable, decentralized synthetic dollar, one that is backed by a sound and innovative strategy.”

The Future of USDN

SMARDEX has already started testing USDN through its testnet, with thousands of daily users providing feedback since September. The project has caught the attention of leading auditors, including Charles Wang from Bail Security, who described USDN as “one of the biggest innovations in the last few years when it comes to smart contract development.” Similarly, Owen Thurm from Guardian Audits praised the technology, calling the implementation “wizardry.”

Looking ahead, SMARDEX plans to release the full protocol in January 2025. As more users adopt USDN and continue to stake sUSDN, the token will grow in utility, offering both stability and yield within the DeFi ecosystem.

About SMARDEX

SMARDEX is an advanced decentralized exchange (DEX) and automated market maker (AMM) platform that aims to revolutionize DeFi by introducing features like Volatility Vaults, which turn impermanent loss into impermanent gains. Operating across multiple blockchain networks such as Ethereum, Binance Smart Chain, and Polygon, SMARDEX offers low fees, seamless transactions, and opportunities for staking via its native token, SDEX.

The integration of USDN into the SMARDEX ecosystem further solidifies its position as a leader in decentralized finance, providing users with a stable, transparent, and secure synthetic dollar solution. As the platform continues to evolve, SMARDEX and USDN promise to drive innovation and unlock new opportunities for users within the Web3 space.

For more information about SMARDEX and USDN, visit smardex.io.