The fast-growing cryptocurrency industry has caused more and more digital assets to be created, one of which is Neutrino USD.
This cryptocurrency adds to the competition for stablecoin adoption on the Defi project. With a different concept from other stablecoins such as USDT.
Neutrino USD is an algorithmic stablecoin pegged to USD with the backing of the WAVES coin. WAVES itself is the native token of the Waves blockchain protocol.
- 1 What is Neutrino USD?
- 2 How does Neutrino USD work?
- 3 Neutrino USD used for
- 4 Is Neutrino USD stablecoin?
- 5 Founder Neutrino USD
- 6 Community
- 7 Is a Neutrino bomb possible?
- 8 Where to buy Neutrino USD?
- 9 Final thought
What is Neutrino USD?
Neutrino USD is a USD-pegged stablecoin using algorithmic governance using smart contracts powered by the WAVES blockchain.
The Neutrino protocol uses algorithms for price stability using smart contracts. It is written in the Ride programming language deployed on the Waves blockchain.
With the Neutrino protocol, it is possible to create stablecoins that are pegged as real-world assets. Neutrino USD leverages the staking model applied to the Waves consensus protocol that uses an enhanced Proof of Stakes called LPoS.
The neutrino protocol consists of three important coins that are at the core of the network’s sustainability, WAVES, USDN, and NSBT.
The WAVES token plays a role in serving the USDN collateral which is the core stablecoin on the Neutrino network. WAVES is also a coin that is also for transaction fees.
USDN is the core coin in the Neutrino protocol which is an algorithmic stablecoin pegged to the US dollar, which is the collateral for other digitally stable assets in the Neutrino network.
While the NSBT coin acts as a recapitalization and token governance that ensures the stability of the USDN collateral in the Neutrino protocol.
How does Neutrino USD work?
How to issue USDN is to use an algorithm via smart contracts to provide WAVES tokens as collateral at a ratio of 1:1 to the US Dollar. Everyone who wishes to get USDN coins should go to swapWavesToNeutrino on the Neutrino master smart contract. They can trade WAVES to USDN at the current smart contract price.
A simple example of how the Neutrino protocol works is to issue 1 USDN. We send WAVES coins worth 1 USD to a smart contract with a minimum of 1 WAVES.
The time limit is 1 block about 1 minute. To request a reverse exchange (USDN to WAVES), the user must call the swapNeutrinoToWaves . function.
When a Balance Lock Interval block is created by the Waves blockchain. The token will be ready to be withdrawn using the real price withdrawal method when the Balance Lock Interval height is reached.
The minimum to exchange is 1 USDN for WAVES with a time limit is 1,440 blocks of approximately 24 hours.
Along the process of the transaction, the user cannot create a new transaction. In every swapping, there is a protocol fee for the NSBT team to maintain system stability governance. The fee is distributed among NSBT holders who stake their shares.
Mechanism to stabilize USDN
The USDN stablecoin, which relies on an algorithmic smart contract, will detect the price of the WAVES asset.
When the Waves cap exceeds the USDN cap, the smart contract will generate the appropriate USDN amount to buy back the NSBT liquidation order.
If there are no NSBT tokens to liquidate, then a situation where the WAVES limit is larger, and the supply of Neutrinos remains.
If the WAVES cap falls, the smart contract detects it as a deficit and not enough to cover the USDN stable token cap.
Then smart contracts through auctions with specifically NSBT are generated. And sold to buy WAVES to re-balance the capitalization of WAVES and USDN.
Neutrino USD used for
Referring to the official page of the Neutrino website, this protocol is the infrastructure used for the Accessible Defi toolkit. Which is a financial algorithmic plug-and-play.
To support business continuity, the Neutrino protocol is supported by the Neutrino App. Users can connect a WAVES or Ledger wallet to enable transactions on the network.
Through this application, users can swap WAVES to USDN and vice versa, stake USDN or NSBT, and buy-sell NSBT.
A neutrino can also be a gateway for Ethereum users allowing them to be rewarded by holding ERC20 USDN in the Defi liquidity pool.
The combination could allow Defi developers on the Ethereum Blockchain to use USDN in a decentralized financial system via the Defi interchain gateway port.
Apart from using the Neutrino App, most protocol operations go through Waves.Exchange.
Is the Neutrino app safe?
In the Neutrino whitepaper, you will find a disclaimer about using the information written on the website.
This condition can be translated into possible risks in using the retrieved information, both on USDN trading, and the use of applications in the Neutrino protocol environment.
Possible risks may arise from malicious hacking attacks on the smart contract infrastructure.
Another risk can occur with the so-called black swan in the reverse token price. This is when there is a deficit due to the dropdown price of the WAVES token which allows for an emergency shutdown condition on smart contracts.
Another risk is unforeseen conditions, in which there is an error in the price feed from the oracle, which causes irrational conditions, and does not bring sufficient liquidity to maintain market stability.
Is Neutrino USD stablecoin?
Neutrino USD is an algorithmic stablecoin pegged to the US dollar, with the WAVES collateral token, besides USDN itself, Neutrino has other stable assets-
- EURN is the Neutrino EUR pegged to the Euro.
- CNYN is a Neutrino CNY pegged to the Chinese Yuan.
- JPYN is Neutrino JPY pegged to the Japanese Yen.
- RUBN is a Neutrino RUB pegged to the Russian Ruble.
- UAHN is Neutrino UAH pegged to Ukrainian hryvnia,
- BRLN is a BRL Neutrino pegged to Brazilian real.
- GBPN is a Neutrino GBP pegged to the British pound.
- TRYN is Neutrino TRY pegged to the Turkish lira.
All of these stable assets are pegged to a 1-to-1 ratio. Which is regulated algorithmically by smart contracts whose rates are updated once a minute.
USDN was created with the Neutrino protocol in 2019 which is collateralized by the WAVES token which is the native token of the Waves blockchain. All operations within the Neutrino network involve USDN such as Issuance, staking, and rewards.
The original amount of USDN issued was, 1 trillion USDN locked in the smart contract without any ability to issue an additional amount.
At this time the circulating supply of USDN referring to Coinmarketcap is 830,491,966.29 USDN, with a total supply of 830,492,570 at a price level of $0.9922.
Another derivative token in the Neutrino protocol is NSBT, it stands for Neutrino System Base Token, which is issued to ensure stable backup of Neutrino smart contracts.
These NSBT tokens are issued to lock WAVES tokens in smart contracts and serve additional backing to ensure protocol stability against deficits. Users can purchase NSBT via the Neutrino App. by first connecting the wallet. NSBT holders are also allowed to participate in NSBT stakes and get rewards.
Decentralized ForEx stands for DeFo is an extension enabling the instant swapping of stablecoins tied to national currencies. Defo is built on the Neutrino protocol that uses smart contracts for swaps which were the first interface available on Waves.exchange.
Defo is open source which can also be integrated with other protocols. There are several types of transactions with Defo – transaction fees, Liquidity provider fees of 0.2%, and Primary collateral fees of 0.05%.
Neutrino to USD
Although USDN is basically pegged to USD, in reality, the value of 1 USDN is not always equal to 1 USD. The value was volatile with the highest change to $1.20 USD being an all-time high and as low as $0.6867.
This means the USDN stablecoin, is not always worth 1 USD. And the rise and fall of the USDN value against the USD are also closely related to the WAVES token. Because this token is collateral in the Neutrino protocol.
This seems somewhat similar to Tera LUNA where the stablecoin uses LUNA as collateral. And recently, the value of LUNA tokens dropped heavily, causing several investors to go bankrupt.
Do Neutrinos have a charge?
After all Neutrino protocol was built for the purpose of money in crypto investment. In transactions, a fee will be charged on transactions through Defo.
Transaction fees can be paid with WAVES and other assets on the Neutrino protocol. Transaction fees are low for Liquidity provider fees, only 0.2%
While the primary collateral fee is only 0.05%.
Founder Neutrino USD
There are two names refers in the Whitepaper related to Neutrino USD, they are the founders of Waves blockchain, Sasha Ivanov and Aleksei Pupyshev. This makes quite a bit of sense since Neutrino USD uses the Waves blockchain.
The whitepaper releases two years ago on Apr 16, 2020, which is still Neutrino v1.
You can find support for the Neutrino community on Twitter, Telegram, Facebook, and Medium.
On the Twitter social network, the Neutrino uses the nickname @neutrino_proto, which joined in September 2019 and has 29.6k followers.
In this community, you can find important information related to Neutrino USDN with average tweets every week.
Social networking support Facebook page, at the address https://www.facebook.com/NeutrinoProtocol. Unfortunately, in this community, Neutrino rarely updates information with the number of people who follow only 727 people and the last update is June 25, 2021. So it’s been almost a year since the admin of this business page has been inactive.
On the Telegram channel, you can find the channel at the address https://t.me/neutrino_group, which in this group has 4107 members. Although the members are not very many, the group members are quite active in interacting with one another.
For Medium community support, you can find Neutrino at https://medium.com/neutrinoteam. In this blog, you can find many things from the Neutrino team written in blog articles.
Is a Neutrino bomb possible?
In this case, we are not talking about detonation bombs. Because this is about Neutrino USD, a plug-and-play platform for Defi.
Learn from the history of LUNA, whose price dropped and made most investors fall. It was like a bomb that exploded without any sign of an impending explosion.
Meanwhile, the way USDN works is similar to TeraUSD which is pegged to USD using LUNA as collateral. Even though at the moment, USDN offers advanced stablecoins, it is possible that there are parties who monopolize the price for profit but shake up the WAVES token.
Although the risk of the bomb may occur, the hope is that the USDN token becomes a secure stablecoin.
Where to buy Neutrino USD?
Most USDN transactions occur via Waves.Exchange which is the market of the Waves blockchain. However, investors can buy USDN on some exchanges.
The easiest way to find an exchange that supports USDN is to go to the Neutrino USD page on Coinmarketcap. Then click on the market above the price chart, to the right of the “Overview” tab. On the markets page, you can find exchanges that support USDN.
- Kucoin, available pair USDN/USDT.
- Uniswap v2, This is DEX you can trade USDN swaps to CRV as an example.
- Curve Finance.
- Hotbit. Available USDN/USDT.
Neutrino USD comes by leveraging the Defi market to provide a stablecoin solution powered by the WAVES token.
Although the value is pegged to USD, in the market, the buy and sell prices of USDN coins can change up to or down. And to keep the balance using algorithms written in smart contracts with the Redi programming language.
Note: this article is for informational purposes only. This is not investment advice or solicitation. Forex, Crypto, and CFD are risky, each investor is responsible for his/her investment.
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