💲$USDrise

$USDrise is the native stablecoin of the Sunrise protocol, issued by wrapping noble's USDN. This document provides an overview of USDrise, its features, and how it integrates into the Sunrise ecosystem.

Overview

USDrise is designed to be a stable and reliable medium of exchange within the Sunrise protocol. It aims to maintain a 1:1 peg with the US Dollar.

There are two primary ways to acquire USDrise:

  1. Swap: Users can also obtain USDrise by swapping other tokens, such as USDC, USDN, or RISE, through the x/swap module within the Sunrise ecosystem.

  2. Mint: The issuance and burning of USDrise are managed by the x/stable module, which requires interaction through an authorized contract. Users can mint USDrise by depositing USDN at a fixed exchange rate of 1 USDN = 1 USDrise. This process ensures transparency and control over the token supply.

For more detailed information on the x/stable module, please refer to the x/stable module documentation.

Key Features

  • Transaction Fees: All transaction fees within the Sunrise protocol are paid in USDrise, making it a central component of the network's economy.

  • Yield Bearing: USDrise offers a yield equivalent to that of USDN, allowing holders to earn passive income.

Fee Mechanism and Distribution

USDrise serves as the primary token for transaction fees within the Sunrise ecosystem. The collected fees, along with yield from the underlying USDN, are distributed to stakeholders, creating a sustainable economic loop.

Flow Breakdown

  1. Revenue Collection: The FeeCollector module account accumulates funds from two primary sources:

    • Transaction Fees: Users pay transaction fees in $USDrise.

    • USDN Yield: The yield generated from the underlying USDN backing USDrise is also directed to the FeeCollector.

  2. Burn Mechanism: Based on the burn_ratio parameter in the x/fee module, a portion of the collected fees is swapped for $RISE and subsequently burned. This acts as a deflationary mechanism for $RISE.

  3. Reward Distribution: All remaining funds in the FeeCollector (the portion of fees not burned, plus all USDN yield) are distributed as rewards to both $vRISE and $RISE stakers, incentivizing participation in governance and network security.

This process ensures that the usage of the network directly contributes to the value of the native tokens and rewards its most committed participants.

For more detailed information on the x/fee module, please refer to the x/fee.

About USDN

USDrise is backed by Noble Dollar (USDN), a stablecoin from the noble network. It is important for users to understand the mechanics and risks associated with USDN. We strongly encourage users to conduct their own research on USDN to make informed decisions.

Noble Dollar (USDN) is a stablecoin built on the foundation of composable yield. USDN leverages the M^0 Protocol to deliver stablecoin yield collateralized by short term U.S. Treasury Bills. USDN is purpose built for the modular ecosystem and is constructed to allow yield to be directed in a customizable, programmatic and transparent fashion.

For more information, please refer to the official documentation from Noble: Noble Dollar (USDN)

Related Documents

PreviousAllocationsNextGluon

Last updated