Synapse USD (Avalanche)

nUSD

nUSD, or "nexus" USD, is a cross-chain bridge asset fully backed by the nexus stablecoin liquidity pool on Ethereum that consists of DAI, USDC, and USDT. nUSD is used to enable cross-chain swapping of assets.

Risk Rating
Good
$0.00
Summary
What we like
nUSD is a fully collateralized cross-chain asset that is backed by stablecoin deposits in a liquidity pool on Ethereum.
What we like less
Each chain has a nUSD liquidity pool that can become imbalanced. This can make it more expensive to swap for native stablecoins if they are under-supplied.
What it means for you
Offers you a great way to earn yield on your USD, while enabling fast transfers across different blockchain networks.
Information
Blockchain
  • Avalanche
Key Metrics
  • Volume (24H): $537.6K
  • ATH: $0.00 (04/14/2023)
  • ATL: $0.00 (11/21/2022)
Risk Assessment
Good
Asset Strength

nUSD is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Synapse and Maker, which are protocols rated as Moderately Risky and Solid, respectively. The asset has an uncapped supply but has inflation control or burn mechanisms in place.

nUSD is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value.

Asset Volatility

nUSD is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value.

Dependencies

Maker


Synapse

Things to know about nUSD

How is nUSD created?

nUSD (nexus USD) is a cross-chain stablecoin that is fully backed by a basket of stablecoins (DAI, USDC and USDT) deposited in a liquidity pool on Ethereum. Every destination chain offered by Synapse has its own nUSD liquidity pool that is incentivized with protocol rewards. When a stablecoin is bridged on Synapse, the assets are automatically converted to nUSD and bridged to the destination chain. On the destination chain, the nUSD is then auto-swapped to the chain's native stablecoins using the local nUSD pool.

What is nUSD used for?

nUSD is used to enable fast bridging of stablecoins to and from various blockchain networks that are available on Synapse.

How is the price of nUSD kept stable?

nUSD liquidity providers (LPs) accrue value through bridging fees and SYN emissions. As the pool balance changes on each chain, arbitragers are incentivized to rebalance the pool through a deposit or swap bonus. Swapping or bridging into pools that are over-supplied can lead to discounted fees while swapping in pools that are under-supplied can be more expensive.

nUSD Pools