SMARDEX Attracts $4.5 Million in Public Seed Round for Revolutionary Synthetic US Dollar

SMARDEX Raises $4.5 million in TVL Immediately After the Launch; Public Sees Round to Unlock the First Decentralized Synthetic US Dollar Balanced by ETH

MONTREUX, Switzerland, Dec. 09, 2024 (GLOBE NEWSWIRE) -- SMARDEX, a decentralized finance platform funded by Swiss Web3 pioneer RA2 TECH, is announcing the launch of USDN after two years of intensive development and $12 million of investment. The platform's public seed round has attracted an additional $4.5 million in TVL in the immediate days after launching.

USDN is a synthetic dollar token backed by a fully decentralized ETH perpetual contract that - for the first time in crypto - delivers a Delta Neutral strategy. Addressing the vulnerabilities exposed by previous algorithmic stablecoins like Terra Luna, USDN will synthesize the stability of the US dollar using a tried and tested TradFi strategy that carries no risk of external counterparty liquidation. Unlike Terra Luna's volatile token approach, USDN utilizes ETH – the world's second-largest cryptocurrency – to create a novel structured product.

The core innovation lies in a mathematically precise Delta Neutral strategy that ensures those shorting ETH by minting USDN are always equally balanced by those going long ETH within the SMARDEX platform. This is controlled by a smart contract that ensures positions are always equally weighted. Critically, this approach prevents the systemic risks that plagued previous stablecoin models, ensuring there can never be a run on either asset.

For example, if ETH's price doubles, a long position earns 100% (double the value). Simultaneously, a short position loses 50%. The net result is no profit or loss in USD terms, because the gains and losses ...

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