Stable coins seems to be the current trend for blockchains as most blockchains are creating their own StableCoins. NEAR is a crypto I have been seeing for a while but as usual I didn’t bother to do my research on it, I don’t have any stake or NEAR coins. This is because they are over 10,000 coins and tokens out there, how many of them can you buy? But then it’s StableCoin just got my attention so I had to look in to it.
Well just like other blockchains, the NEAR protocol runs on proof of stake and its designed to help make computer storage easier in the cloud by using its user friendly feature. Just like every other coins and tokens, they tend to work so hard to be a competitor against bitcoin, Ethereum and every other blockchains outshining it. I have encountered lots of coins and to be sincere the NEAR protocol is not something that interest me to hold for a long term because I don’t fully understand it’s utility. But then, trading it won’t be so bad.
Back to the reason I started writing this article, so they have been making the world anticipate for its new decentralized StableCoin whose name should be USN(the “N” should stand for NEAR). This announcement was made last week, just like most other decentralized StableCoin like the StableCoin is expected to be algorithmically backed by the NEAR token. This way, for every USN minted a NEAR token will have to be used as collateral, so let’s call it the NEAR Backed Dollar. Because it’s value is pegged to the native token, NEAR right? This is something we have here on HIVE, whenever I see news like this, I fee like screaming Hive Backed Dollar!! So loud because it’s not new, we have had this technology on Hive for 2 years now. This is another proof that Hive is way ahead of it’s time.
The reason behind my title is the APR yield of the USN, it’s like they didn’t get the MEMO, other StableCoins pay higher yields so why should I choose the NEAR’s USN? In as much as lots of people don’t trust Justin Sun, his USDD StableCoin yield which is 30% is the reason they won’t mind investing in it. But then HBD is the best so far, it’s secured and decentralized, not backed by fiat but by the Hive coin. So while the rest platforms are looking for how to drive more investors into their platforms, is NEAR trying to drive any investors with their low yield? Why do they think that people will consider their StableCoin with their low yield. Well, as log as I am not investing I have nothing to worry about, I just have to sir here and watch things unfold.