Neutrino USD (USDN)

What is Neutrino Protocol?

Neutrino Protocol is an algorithmically stable multi-asset protocol, governed by Neutrino token holders (NSBT) and an accessible DeFi toolkit built on Waves and enabling the creation of tokens. stable money pegged to a specific real asset, such as a national currency or commodity. 

The Neutrino protocol is represented by a set of interactive smart contracts written in the Ride programming language and deployed to the Waves blockchain. Most entertainment using the Neutrino protocol is now available through the Waves.Exchange interface. Waves blockchain navigation is fully deployable using Waves Explorer and trend board services like Pywaves or w8io. 

The Neutrino system basically consists of 3 main tokens: WAVES, USDN and NSBT. WAVES is the core token of the Waves blockchain and is used to pay transaction fees. It acts as collateral for USDN – Neutrino’s main stablecoin. USDN is an algorithmic stablecoin pegged to the US dollar (at a ratio of 1:1). NSBT is the refinancing and governance token of the Neutrino protocol that ensures the stability of the USDN collateral reserve.

The mechanism of action of Neutrino USD

USDN is issued based on an algorithm that provides WAVES tokens as bank collateral, against USD 1:1 via smart contract. To get USDN, users should call swapWavesToNeutrino function in Neutrino main contract. It does a WAVES to USDN swap at the current price in the smart contract. 

Example: To issue 1 USDN, you need to deposit 1 USD into the WAVES smart contract. The minimum amount to convert WAVES to USDN is 1 WAVES. Timeout is 1 block (about 1 minute). 

To perform the reverse swap (USDN to WAVES), the user should call the swapNeutrinoToWaves function. After the Waves blockchain generates balanceLockIntervalblocks, when the balanceLockInterval height is reached, tokens will be available for withdrawal at the actual price using the withdrawal method. The minimum amount to convert USDN to WAVES is 1 USDN. Timeout is 1,440 blocks (about 24 hours). The swap function cannot be opened while the previous swap is still in progress.

From each swap payment, a protocol fee is sent to the NSBT team to maintain the immutability of the system network. It is distributed between NSBT holders and depositors.

Neutrino USD Highlights

With the transfer, Neutrino USD is likely to enter Ethereum. USDN allows Ethereum users to receive rewards in the form of just holding USDN in their Ethereum wallet. The new combination also allows Ethereum developers to use USDN in decentralized financial applications.

Neutrino USD is pegged 1:1 to USD and is used as a payment token in various decentralized software. It can also be traded on different markets. The Waves symbol indicates that the token moves between 8% and 15% per year when staking. 

In contrast to fiat-backed stablecoins where the owner must trust the issuer, USDN is an algorithmic stablecoin issued by smart contracts, meaning it is maintained by the algorithm as well. as clarity of different stakeholders in the community.

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