Neutrino Integrates Band Protocol’s Oracle To Secure Stablecoin Protocol

Neutrino Protocol
Jul 14, 2020 · 3 min read

Neutrino and Band Protocol have collaborated on creating a secure oracle and independent emergency system to the algorithmic stablecoin to make it more reliable and secure for users. Neutrino is an algorithmic stablecoin that allows users to use WAVES tokens as collateral to mint USDN, Band Protocol is integrated to enable connections to multiple trusted, high-quality data sources capable of providing price updates on-demand through Band Protocol to the underlying stablecoin protocol.

Band Protocol is a decentralized cross-chain data oracle that connects smart contracts with scalable real-time external data, providing the tools for developers to specify and connect to any external data source or API with custom aggregation methods. They are backed by world-class investors such as Sequoia Capital and the top cryptocurrency exchange, Binance.

We have selected Band Protocol as the decentralized oracle solution because it is capable of meeting Neutrino’s high security and scalability standard. To adequately improve the oracle security of the stablecoin protocol, Neutrino requires an oracle capable of querying the real-time price of collateral (WAVES) from various trusted data sources and price update parameters specified by the team.

As such, Neutrino has worked closely with Band Protocol to create a customized oracle script on BandChain to query the WAVES/USD price feed from five unique and trusted data sources: CoinGecko, Binance, OKEx, Huobi, Kraken and CryptoCompare. By default, the oracle will be updating the price feed once every hour or when there is a 0.5% price deviation. These parameters are customizable using Band Protocol and will be changed in the future to adapt to the changing needs of Neutrino if necessary.

The price of stablecoins based on Neutrino (such as USDN) currently is being determined via a system of oracles that supply data from crypto-exchanges, managed by Neutrino stakeholders. Band Protocol is also being implemented to detect anomalies in price oracles to further protect the $15 million total value locked up as collateral and in staking. This emergency oracle system of Neutrino was put in place to halt the smart contract in the event of an attack or a dangerous rare market fluctuation, keeping assets safe and increasing the reliability of Neutrino for all users.

Band oracles will also be used in the collateral calculations for issuing USDN and redeeming WAVES within the Neutrino minting and liquidation protocols.

The Neutrino team has been very pleased with the working relationship and mutually beneficial cooperation with Band Protocol — both teams will continue to look for further ways to work together strategically. We are very excited to be driving adoption of DeFi along with the Band Protocol team.

About Band Protocol
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Blockchains are great at immutable storage and deterministic, verifiable computations — however, they cannot securely access data available outside the blockchain networks. Band Protocol enables smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle. Band Protocol is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and the leading cryptocurrency exchange, Binance.
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Neutrino Protocol is an algorithmic price-stable multi-asset protocol and an accessible DeFi toolkit built on Waves that allows for the creation of stable coins tied to a specific real world asset, such as national currency or commodity. The first synthetic asset created with Neutrino Protocol is USD Neutrino (USDN).


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A multi-assetization protocol acting as an interchain toolkit for frictionless DeFi