# USDN

Waves is an open-source platform and decentralized environment for Web 3.0 applications, founded by Ukrainian-born scientist Sasha Ivanov. It offers a variety of specially designed tools that make the process of developing and running dApps easy and accessible. But this is also a project that exploded because of the native stable currency. DeFi researcher HamZ posted his views on Waves on his personal social media platform. Waves borrowed USDC and USDT stablecoins at an annualized interest rate of 105.48%, and then used them to purchase their own Waves tokens, thereby boosting the rise of its

While USDN is backed by WAVES, as more USDN is issued, the yield of USDN will decrease. In order for the entire project to run smoothly and healthily, the market value of WAVES needs to maintain continuous growth. When yields are low, there is a risk of capital flight. If the game is to continue, WAVES must attract users to deposit USDC and USDT to the VIRES protocol so they can borrow these stablecoins via newly minted USDN. This naturally requires them to offer above-market interest rates to incentivize people to deposit USDC and USDT to the VIRES protocol. And when the issuance of USDN will