Noble Launches USDN Stablecoin, Offering Yields to Its Holders

Noble, a platform built on Cosmos, launched its USDN stablecoin, designed to offer yields to its holders.

TL;DR: Noble, a platform running on Cosmos, has launched its USDN stablecoin, designed to offer yields to its holders. Unlike traditional stablecoins like USDT or USDC, which only generate profits for their issuers, USDN allows users to benefit from the income earned through the holding of U.S. Treasury bonds. These revenues are distributed among developers, validators, and platforms supporting the stablecoin, presenting a new model that aligns the interests of all participants.

The annual yield on USDN is around 4.15%, although this rate will change depending on the returns generated by the Treasury bonds backing the coin. This model is unique as it differs from common models in the market, such as Tether’s, where substantial profits are generated from reserves but not shared with users.

In another development, Noble has launched a new "points" program with flexible yields. This program offers users alternative ways to earn yields, providing two options: the "Staking Vault," where users can lock up their USDN for periods of up to four months to earn points, and the "Flexible Vault," which offers higher yields in exchange for forfeiting yield payments and maximizing points accumulation.

USDN was created using the M^0 protocol, a framework for launching customizable stablecoins. This protocol provides developers with a base stablecoin that can be adapted to their specific needs, offering greater scope for stablecoin creation within the ecosystem.

Noble is also known as the platform issuing the native asset of USDC in the Cosmos ecosystem. Over the past year, it has facilitated over $6.5 billion in stablecoin transfers across various blockchain applications. Moreover, its collaboration with Hashnote led to the launch of a tokenized short-term yield fund, called USYC, showcasing the company's role in pioneering the creation of novel financial products within the cryptocurrency market.