Web3 with Sam Kamani

229: Can Stablecoins Be Truly Decentralized? Jean from Smardex on USDN & DeFi Yield

26 Feb 2025

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Are stablecoins too centralized? Is there a way to get high yields without sacrificing decentralization?In this episode of Web3 with Sam Kamani, I sit down with Jean from Smardex, live at Consensus 2025 in Hong Kong, to discuss how Smardex is pushing the boundaries of stablecoins with USDN—the first fully decentralized synthetic dollar.🔥 Key topics we cover:🔹 Why most stablecoins are centralized (USDT, USDC, etc.)🔹 The failure of algorithmic stablecoins & lessons from Terra Luna🔹 How Smardex’s USDN achieves decentralization & high yield (26% APY!)🔹 How their protocol balances ETH longs & shorts to maintain a stable peg🔹 The future of decentralized finance & what’s next for SmardexIf you’re interested in DeFi, stablecoins, and high-yield strategies, this episode is a must-listen!Key Timestamps[00:00:00] Introduction: Sam introduces Jean from Smardex, discussing their stablecoin innovation live from Consensus 2025 in Hong Kong.[00:01:00] What Problem Does Smardex Solve? The issue with liquidity management in DeFi How traditional stablecoins sacrifice decentralization for usability Why most AMMs create too much impermanent loss[00:03:00] Introducing USDN—The First Fully Decentralized Synthetic Dollar How USDN avoids CeFi risks How Smardex designed a fully on-chain, decentralized perpetual market Why traditional stablecoins rely on centralized collateral[00:06:00] The Three Types of Stablecoins & Why USDN is Different1️⃣ Centralized Stablecoins (USDT, USDC) - Backed by banks & RWAs2️⃣ Algorithmic Stablecoins (Terra Luna, DAI) - Collateral-based but risky3️⃣ Synthetic Stablecoins (USDN) - Balanced by perpetual trading strategies[00:08:00] How USDN Maintains a Stable Peg & Generates High Yield Delta-neutral strategy—ETH longs vs USDN shorts Funding rate dynamics—How traders pay interest to USDN holders No need for staking or KYC—just hold USDN & earn yield[00:11:00] Why USDN’s APY is 26% & How It Works Yield comes from ETH longs paying funding rates Wrapping ETH into Lido staked ETH (wstETH) for additional yield How USDN holders benefit from double compounding[00:15:00] How Users Can Mint USDN Option 1: Swap for USDN on DEXs (Uniswap, Curve, etc.) Option 2:Mint USDN directly using ETH or wstETH (recommended for large amounts) How rebasing ensures yield flows directly into wallets[00:19:00] The Ultimate Test—USDN’s Stress Test in a Market Crash How USDN handled the recent Ethereum price drop Why their liquidation system worked flawlessly Proof that their fully on-chain model is sustainable[00:23:00] The Future of USDN & Smardex’s Roadmap Adding new on-chain trading features Expanding collateral options beyond ETH Transitioning USDN governance to a DAO[00:26:00] Final Thoughts—Jean’s Advice for DeFi Builders Why decentralization is non-negotiable How Smardex scaled from 3 to 40 employees without VC funding How to join Smardex—hiring now in Switzerland!Connecthttps://smardex.io/https://www.linkedin.com/company/realsmardex/https://x.com/SmarDexhttps://www.linkedin.com/in/jeanrausis/https://x.com/SmarDexJeanDisclaimerNothing mentioned in this podcast is investment advice and please do your own research. Finally, it would mean a lot if you can leave a review of this podcast on Apple Podcasts or Spotify and share this podcast with a friend.Be a guest on the podcast or contact us - https://www.web3pod.xyz/

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229: Can Stablecoins Be Truly Decentralized? Jean from Smardex on USDN & DeFi Yield

This episode hasn't been transcribed yet

Other episodes from Web3 with Sam Kamani

349: Inside Openfort: Fixing Wallets, Crypto UX and Privacy, and the Road to 2026 with Guest Speaker Joan Alavedra

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