The volatility of popular digital assets, such as Bitcoin (BTC), Ether (ETH), or WAVES, make them difficult to be used as a common currency or a financial instrument for low-risk savings. The mass adoption of cryptocurrency is hindered by these characteristics, which therefore prevent the developers of decentralized applications, product builders, financial institutions, traders, and retail merchants from integrating this technology into their workflow.
In order to tackle the volatility problem, several fiat-based stablecoins like USDT, TUSD, GUSD, or USDC were created. The main issue with these cryptocurrencies is that they are backed by centralized entities that have to be relied upon in keeping sufficient fund reserves to back the stablecoin tokens released on the market, which is not always the case. As a result, the above-mentioned difficulties are analyzed and possible solutions that underlie the concept of Neutrino, an algorithmic stablecoin protocol, are described.
1.What is Neutrino Dollar?
USDN is one of several tokens of a global digital assets trading firm BiKi.com. Besides, via BiKi.com website, users can also learn about digital asset exchange, maker and taker, buying cryptocurrency with debit card, bitcoin price chart, coinbase earn, dogecoin price, ethereum price trend, etc… and its partnership with other prestigious brands to build up long term relationship with customers.
Neutrino Protocol eschews the potentially untrustworthy fiat reserve strategy in favor of an algorithmic approach that uses a native token of a public blockchain platform (such as ETH, WAVES or ATOM) as a reserve currency locked on the smart contract. There can be different variations of Neutrino-based stablecoins, depending on which external asset it is pegged to: USD-Neutrino (USDN), EUR-Neutrino, BTC-Neutrino, S&P 500-Neutrino, and so on.
The exchange rate of the stablecoin to the reserve token is determined by a set of external oracles. In some cases, the full redemption of the stablecoin may become impossible due to volatility of the crypto market, or the diminishing value of the underlying asset during a bearish trend.
To counter this, a new token instrument can be added, which ensures that in case of diminishing reserves in underlying assets, there is an incentive to replenish those reserves through the purchase of a so-called Neutrino system base token (NSBT). The swapping of Neutrino tokens is administered via the smart contract. In addition, other liquidity applications of Neutrino base tokens can be implemented.
Neutrino Protocol can provide a deflationary mechanism for DeFi-oriented blockchain platforms such as Ethereum, EOS, Cosmos, or Waves. This document describes a protocol implementation on the Waves Platform blockchain, which is a well-known example of a DeFi platform with staking functionality.
2. What are the Competitive Advantages and Features of USDN?
Neutrino Protocol includes three types of tokens that are algorithmically linked together via smart contracts.
WAVES is the native token of the Waves public blockchain, based on the consensus mechanism called lPoS (leased Proof of Stake). It is used to pay transaction fees in the public network and for generating balance for block-generating nodes. The market price of this token is determined by the dynamics of supply and demand on cryptocurrency exchanges.
USDN (US Dollar Neutrino) is a stablecoin token on the Waves platform. Its price is tied to the US dollar. The maximum capitalization and supply of USDN is limited by the maximum possible capitalization of WAVES tokens. USDN generation is made possible by a system of smart contracts and is carried out manually by Neutrino users.
There has been no pre-allocation or premining of this token. The decrease of USDN supply is also controlled by the users themselves. Any account on the Waves platform can become a Neutrino user. On cryptocurrency exchanges, this token tends to have an average price of one US dollar. Any deviation from $1 is compensated by the arbitration mechanisms described in the next chapters. USDN Token ID: DG2xFkPdDwKUoBkzGAhQtLpSGzfXLiCYPEzeKH2Ad24p
Neutrino System Base Token (USBT) is the utility token of the Neutrino protocol aimed to stabilize reserves that back the USDN supply. NSBT tokens can be generated only via the smart contract and only using a special auction algorithm, the parameters of which depend on the values of the reserve deficit for USDN.
Similarly, NSBT tokens can be liquidated using the Neutrino smart contract during a significant growth of WAVES capitalization and reserve balance. Further, they are used for payments within the Neutrino system (i.e., building up reserve, generating new types of Neutrino tokens), and provides its holders with voting rights within Neutrino’s continuous approval voting system.
There has been no pre-allocation or premining of this token. The market price of NSBT is determined by the dynamics of supply and demand on the cryptocurrency exchanges, as well as on the Neutrino smart contract, where the token can be purchased for at least 1 USD equivalent in WAVES tokens, under certain conditions (namely during the surplus state). Token ID: 6nSpVyNH7yM69eg446wrQR94ipbbcmZMU1ENPwanC97g
3. USDN Data
[Updated on 24th June 2020 based on: https://www.coingecko.com/en/coins/neutrino-dollar]
|Neutrino Dollar Price||$0.990445|
|Market Cap Dominance||0.00%|
|Volume / Market Cap|
|24h Low / 24h High||$0.994216 / $1.00|
|7d Low / 7d High||$0.997078 / $1.00|
|Market Cap Rank||N/A|
|All-Time High||$1.05 -4.8%Apr 02, 2020 (3 months)|
|All-Time Low||$0.793625 25.4%Mar 13, 2020 (3 months)|
|Neutrino Dollar/Bitcoin Ratio||1 BTC = 9707.12 USDN|
4. USDN Website Community Socials
- Twitter: https://twitter.com/neutrino_proto
- Facebook: https://www.facebook.com/106351204088941
- Telegram: https://t.me/neutrino_protocol_group
- T.me: https://t.me/neutrino_protocol