USDN, issued by the USDN Protocol smart contracts under the governance of DAO tokenholders, is a yield-generating synthetic U.S. dollar (USD) token that hovers around $1 in value through a fully onchain delta-neutral strategy on Ethereum [S1][S2][S3].

USDN holders gain synthetic USD exposure plus yield from two sources: funding rates paid by leveraged long traders and staking rewards from the wstETH (wrapped staked Ether) collateral [S4][S5]. Yield distributes continuously through a rebase mechanism that inflates holder balances proportionally when USDN trades above $1, triggered around $1.005, restoring the peg [S6][S4]. Minting burns SDEX equal to 5% of the minted amount and requires a refundable 0.15 ETH security deposit [S4][S3].

USDN is not issued by a single corporate entity; the USDN Protocol operates in a fully decentralized manner through smart contracts on Ethereum, with two participant types forming a delta-neutral structure of vault depositors and leveraged long traders [S2][S5]. The holder's claim is a synthetic dollar redeemable for wstETH held onchain in protocol vaults, which serve as counterparty to long positions [S7][S6]. USDN is accessible to any wallet holder [S4]. Redemption returns wstETH on Ethereum and may be temporarily restricted during imbalances between vault and long sides [S4].

USDN mints and redeems only on Ethereum, while wrapped wUSDN is transferable to other chains [S4][S1]. Minting sizes USDN to deposited wstETH value; interaction executes a five-step sequence ending in rebase [S6][S8]. Pricing uses Pyth as the primary oracle with Chainlink as push-based fallback, applying a 40% confidence-interval adjustment [S9].

<Sources
  retrievedAt="2026-06-23"
  items={[
    { id: "S1", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/sdex" },
    { id: "S2", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral" },
    { id: "S3", url: "https://docs.smardex.io/overview/what-is-smardex/tokenomics" },
    { id: "S4", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/faq" },
    { id: "S5", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/long-side" },
    { id: "S6", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/protocol-usdn-overview" },
    { id: "S7", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary" },
    { id: "S8", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/inside-the-protocol" },
    { id: "S9", url: "https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/oracles" },
  ]}
/>


Tokenized funds

twitter

website

github

Exchanges (DEX)

SmarDex

SMARDEX USDN (USDN) is a tokenized fund share issued by SmarDex.

The fund is open-ended, invests in crypto assets, and locks up subscriptions for 0 months.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with SmarDex in wstETH, and holders have a right to redeem at net asset value.

USDN has been issued on Ethereum as an ERC-20 token since January 2025.

SMARDEX USDNUSDN

All metrics