Introduction
SMARDEX is proposing to add a FXN gauge to USDnr/fxUSD. The goal of this proposal is to initially direct incentives to the pair, with the potential for SMARDEX to build a veFXN position. Passing this proposal will enhance liquidity, drive trading volume, and improve LP and voter incentives within the FXN ecosystem.
References & Useful Links
• Website: https://smardex.io/usdn/long
• Wrap token: https://smardex.io/usdn/wrap
• Documentation: https://docs.smardex.io/ultimate-synthetic-delta-neutral
• Github Page: https://github.com/SmarDex-Ecosystem/dex-smart-contracts
• Defillama: http://defillama.com/stablecoin/smardex-usdn
Protocol Description
USDN, by SmarDex, is a decentralized Ethereum-based synthetic U.S. dollar stablecoin pegged to $1. It achieves stability through a delta-neutral strategy: users deposit assets (wstETH) to mint USDN, which is fully backed. For every long position opened on SmarDex’s perpetual futures DEX (a fully centralized Perp), USDN automatically opens an opposing short position to maintain balance. Yield from funding rates is distributed to USDN holders via rebases (increasing balances when USDN > $1).
USDnr is the non-yield version of USDN. It’s a $1-pegged token without rebases or yield, designed for stable trading or lending.
Specifications
Governance: USDnr is governed by SMARDEX stakeholders, with mechanisms in place for future decentralized governance enhancements. The protocol is fully decentralized and autonomous, with SmarDex Governance owned by SDEX holders.
Oracles: USDnr operates independently of centralized oracles and maintains price stability through its unique market-driven mechanism. For detailed oracle information, refer to: https://docs.smardex.io/ultimate-synthetic-delta-neutral/the-usdn-protocol/oracles.
Audits: The SMARDEX smart contracts have undergone multiple security audits, ensuring the highest level of safety for users. Audit details: https://docs.smardex.io/ultimate-synthetic-delta-neutral/audits
Centralization Risks: USDnr is fully decentralized, utilizing DeFi-native yield rather than off-chain assets or opaque mechanisms. Contracts have been renounced. Everything in the protocol is fully decentralized, with no centralization vectors.
Market History: USDnr is preparing for its large-scale launch, backed by established DeFi protocols and a strong community. No prior market history yet (as the non-yield variant).
Motivation
The USDnr/fxUSD pool gauge request is driven by the need to enhance liquidity and adoption of USDnr, SmarDex’s non-yield-bearing synthetic U.S. dollar stablecoin, paired with fxUSD, a stable asset with strong market potential. By incentivizing this pool on Curve and extending to FXN gauges, we aim to deepen liquidity, reduce slippage, and foster a robust trading environment for users seeking stable, low-volatility exposure. This pool aligns with SmarDex’s mission to provide accessible, decentralized stablecoin solutions, leveraging efficient AMMs to attract yield farmers and traders, ultimately strengthening USDnr’s ecosystem integration and supporting its $1 peg stability.