Neutrino protocol celebrates first anniversary

In just 12 months, USDN, the first stablecoin on the Neutrino protocol, became one of the world’s leading stable crypto assets by market cap and liquidity volume, while porting to Ethereum and Binance Smart Chain has fostered wider Neutrino adoption.

Exactly one year ago, Neutrino, an algorithmic stablecoin protocol, was launched on the Waves blockchain. Initially, it included just three elements:

• USDN token, algorithmically pegged to the US dollar
• WAVES token, acting as collateral
• NSBT token, ensuring the stability of reserves.

For the entire year, the Neutrino protocol has been developing, getting more and more deeply involved in the Waves ecosystem. The amount of collateralized USDN has been growing, just like the amount of WAVES locked on the smart contract, while NSBT seamlessly supported and complemented this system.

At some point, the DeFo extension was launched, enabling the issue of other coins, pegged to national currencies, while NSBT acquired some governance token functions.

The past year can be summed up in a few vital numbers:

• $230,000,000+ is the total value locked on the Neutrino smart contract (TVL) in dollar terms
• 15,000+ is the number of protocol users
• $8,000,000+ is daily trade volume on various exchanges
• $100,000,000+ is total liquidity on Сurve.fi
• $100.000,000+ is total market capitalization.

This graph shows the dynamics of USDN supply growth in comparison with the TVL (Total Value Locked) metric, which displays the total value of the WAVES coins locked on the contract, expressed in US dollars.

At the time of writing, USDN is the world’s 11th biggest stablecoin and the top algorithmic stablecoin by market cap outside the Ethereum ecosystem.

The porting of USDN to Ethereum and Binance Smart Chain (BSC) is an example of how the advantages of inter-chain communication can be used in DeFi: as a result, the token is now available in many more DeFi services.

ERC-20 USDN is already available on 1inch, a decentralized exchange (DEX) aggregator on the Ethereum protocol, and on most DEXes, including Uniswap, Mooniswap and Curve. Following USDN, Neutrino Token (NSBT), the Neutrino protocol’s governance token was ported to Ethereum. Waves users can swap Neutrino on BSC, which opens up new opportunities for the token’s use in DeFi apps built on BSC. In addition, USDN is available on a number of leading crypto exchanges, including Kucoin, Bittrex and Hotbit, in popular payment services and the Waves ecosystem’s decentralized apps, such as Swop.fi.

Since the issue of USDN, holders have been taking advantage of the protocol’s unique staking functionality based on the Waves blockchain’s economics. USDN staking’s average annual yield has been around 12%. USDN-denominated interest is paid daily. Staking of other 10 coins, issued on the protocol to date, is also possible.

Currently, about a total of 70,000,000 USDN is in the Curve.fi pool, enabling the generation of about 700,000 USDN in staking rewards monthly. Incidentally, USDN was the first token initially issued on Waves and currently available on two blockchains, Waves and Ethereum. Meanwhile, the development of the Gravity protocol made USDN available on even more blockchains!

We could discuss USDN and the Neutrino protocol forever, but the above numbers are telling enough. Still, today, we would like to reveal something vital, which we are sure has been highly anticipated by the community: the NSBT token.

NSBT is a synthetic token that has several functions, the most important of which are protocol governance and the protocol stability mechanism. We are introducing a new NSBT staking mechanic, which is set to make it much more attractive to investors, offering holders a passive revenue.

Effective immediately, at USDN issuance and redemption, a small share of the transaction volume will be sent to a separate pool and subsequently distributed between NSBT stakers. Thus, the stability of the smart contract will further improve, while NSBT will obtain a passive revenue source and better conditions on smart contract transactions.

NSBT staking could be terminated at any time, just like that of USDN. But, unlike USDN, the smart contract won’t generate new NSBT in a passive mode: they will be available from the smart contract or on the market. The staking interface will be available next week, and all dividends between today and the first payouts will be distributed between NSBT holders who will stake their coins before the pool’s first daily payouts.

2% of all smart contract operations will be sent to the staking pool. This is a base value, which NSBT holders will be able to change by voting. Don’t forget about other opportunities offered by NSBT, including governance of DeFo pools, which will be implemented in coming months.

And now a few more numbers concerning profitability!

So far, about 130,000 NSBT tokens have been issued. Over the past month, the total value of WAVES-USDN and USDN-WAVES swap transactions amounted to $100,000,000.

If, given the same transaction volume, all issued tokens were staked, over a month’s period, staking rewards would amount to $2,000,000, or $15 on each token.

Although fees will be accumulated from scratch, they will all be distributed after the launch of NSBT staking as the first payouts to NSBT stakers.

Meanwhile, the smart contract still buys all NSBT tokens back at $1.

And, finally, on our plans for the immediate future:

• The Neutrino token will get extra governance functions, enabling the setting of more protocol parameters.
• Over 2021, stablecoins pegged to most world currencies, as well as indexes and commodities, are expected to be issued.
• A global remittance system, based on DeFo, will be created, and we are already looking for potential partners in that scheme.
• After the launch of the Ride programming language’s updated version, DeFo pools — pools ensuring DeFo assets’ stability — will be shared with swap and lending protocols on Waves.
• Upon the launch of the Gravity mainnet, DeFi apps in the Waves ecosystem will be trustlessly integrated into Ethereum and available on that ecosystem’s protocols.
• The Neutrino development team is creating a protocol for Neutrino community nodes, which will enable control over Neutrino nodes and distribution of staked WAVES.

New achievements lie ahead! Happy Birthday, Neutrino!

Join us!

Neutrino website: https://neutrino.at

Medium: https://medium.com/neutrinoteam

Twitter: https://twitter.com/neutrino_proto

Telegram : https://t.me/neutrino_group