Synapse USD (Avalanche)
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.
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- Asset Type: ERC-20
- Ranking inside Exponential (among stables): #108
- Volume (24H): $537.6K
- ATH: $0.00 (04/14/2023)
- ATL: $0.00 (11/21/2022)
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 Watch out and Good, respectively.
nUSD is a stablecoin that consistently trades within 10bps of its peg to USD, which makes it a great store of value.
nUSD 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.
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.