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 Smardex

If 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 Different

1️⃣ Centralized Stablecoins (USDT, USDC) - Backed by banks & RWAs

2️⃣ Algorithmic Stablecoins (Terra Luna, DAI) - Collateral-based but risky

3️⃣ 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!

Connect

https://smardex.io/

https://www.linkedin.com/company/realsmardex/

https://x.com/SmarDex

https://www.linkedin.com/in/jeanrausis/

https://x.com/SmarDexJean

Disclaimer

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