Smardex secures USD 4.5 million to launch its stable synthetic dollar token

RA2 TECH, a Montreux-based start-up, has secured USD 4.5 million in public seed funding for Smardex, its decentralized finance platform. The company aims to revolutionize stablecoin technology with USDN, a synthetic dollar token powered by a delta-neutral strategy for greater stability and resilience.

Montreux-based RA2 TECH, the developer of Smardex, has raised USD 4.5 million through a public seed round to accelerate the launch of its decentralized synthetic stablecoin, USDN. The funding follows two years of development and USD 12 million invested in the Smardex ecosystem, a decentralized exchange and automated market maker (AMM) operating across Ethereum, Binance Smart Chain, and Polygon networks.

Smardex introduces USDN to address one of decentralized finance’s persistent challenges—impermanent loss—while offering a stable dollar-linked token. Backed by ETH, the world’s second-largest cryptocurrency, USDN applies a delta-neutral strategy, an investment approach where gains and losses on long and short positions cancel each other out, stabilizing the token’s value.

This approach contrasts sharply with earlier algorithmic stablecoins like Terra Luna, which suffered catastrophic failure due to unsustainable risk exposure. With USDN, Smardex ensures that positions remain balanced through automated smart contracts, eliminating systemic risks and preventing a collapse in value.

Rapid adoption and market validation

The public seed round quickly demonstrated strong market interest. Within 45 minutes of the announcement, over USD 1 million in total value locked (TVL) was achieved. This figure grew to USD 3 million within 24 hours, culminating in USD 4.5 million raised shortly after launch.

Since September, thousands of daily users have been testing USDN through Smardex’s testnet, validating its technology and usability. The platform offers staking opportunities through its website, enabling users to earn substantial yields while ensuring USDN’s stability.

The funds raised will support critical liquidity as Smardex prepares for USDN’s official launch in January 2025. Positioned as a resilient alternative to previous stablecoins, USDN leverages traditional finance strategies and decentralized blockchain technology to maintain a stable USD 1 value, advancing the future of decentralized finance.