Noble’s USDN Stablecoin: A New Way to Earn Rewards
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Noble has launched a new stablecoin called USDN, which allows users to earn rewards while holding their tokens. Unlike traditional stablecoins, which primarily benefit their issuing companies, USDN shares profits with users. This new approach makes USDN more attractive to investors and crypto traders.
In addition to the launch, Noble has introduced a special rewards program called the “points campaign.” This system gives users different ways to earn benefits, making USDN more than just a regular stablecoin.
How USDN Works
USDN is a digital asset that operates differently unlike USDT and USDC. However, most stablecoins are backed by real-world assets like U.S. Treasury bonds, but only their issuing companies earn interest from those investments. For example, Tether, which issues USDT, made over $13 billion in profits last year from its reserve holdings. USDN, on the other hand, Will takes another approach by distributing earnings to developers, wallets, exchanges, and other participants in the ecosystem.
At this junction, holders of the token can earn about 4.15% APY, but this rate may change depending on market conditions. Presently, the USD is available on the Keplr Wallet and can be purchased with credit cards through Moonpay, making it accessible to a wide range of users.
The Noble Points Program
Noble has introduced a points-based reward system to encourage usage. However, users can now participate in two different vaults namely: the Staking Vault and the Flexible Vault. The Staking Vault allows users to lock their USDN for up to four months, sacrificing their yield in exchange for earning points. On the other hand, the Flexible Vault provides a higher return by using the forfeited earnings from staked tokens.
Noble is already well-known for issuing USDC within the Cosmos blockchain network. Earlier this year, it also partnered with Hashnote to create a tokenized short-term yield fund. With USDN and its rewards program, Noble aims to reshape the stablecoin industry and offer more value to its users.
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