The crypto market has been volatile forever, and the instability prevents investors from participating in the network. The fewer people enter the market, the slower its growth will be. Stablecoins are the most surprising answer to this evergoing problem, and Neutrino USD is one of the best stablecoins on the market.
Neutrino USD is a stablecoin that is backed by USD and WAVES. Here we will explain everything about Neutrino protocol, wave, and how it works. Stay tuned to learn more about this stablecoin.
What is Neutrino USD?
Neutrino USD is a protocol built on WAVES to create stablecoins. Stablecoins are cryptocurrencies whose value is backed by a real asset, such as the US dollar—investing in stablecoins decreases the risk of investing in cryptocurrencies.
Neutrino USD is pegged to USD and WAVES.WAVES is a protocol that enables the generation of stablecoins
The native token of Neutrino USD is called USDN, and it can be used for staking reward payouts.
What is the USDN?
USDN is a stablecoin whose price is backed by the US dollar. It means for every USDN there is a US dollar in reserve. Investors can stake their USDNs in WAVES and earn up to 6 percent annual profit.
On the other hand, staking USDN provides higher annual profit. Hence, investors tend to turn their WAVES to USDN to minimize the volatility.
What is NSBT?
There is NSBT which is stands for Neutrino System Base Token. It is the governance token of the platform that can be used for contributing. The governance token using the Recapitalization mechanism provides stable reserves fund for USDN.
How does Neutrino USD work?
The Neutrino USD protocol incentives Leased Proof-of-Stake or LPoS to stake USDN interest and lock more collateral to a smart contract.
To maintain the stability of the USDN smart contract is used. Smart contracts enable developers to create new USDN tokens using WAVES tokens. Neutrino USD is considered the most used dApps on the WAVES mainnet.
What makes Neutrino USD apart from other stabelcoin?
The most important feature of this protocol is that the smart contract of Neutrino USD enables users to create USDN in exchange for WAVES at a 1:1 ratio. After the exchange is done, the construct owns the WAVES and not the sender.
There are different assets on the protocol; each one is backed by a commodity or real asset and by USDN. here you will find the nine digital assets of this platform:
- EUR: backed by Euro
- TRYN: backed by Turkish Lira
- JPYN: backed by Japanese Yen
- CNN: backed by Chinese Yuan
- BRLN: backed by Brazilian Real
- GBPN: backed by British Pound
- RUBN: backed by Russian Ruble
- NGNN: backed by Nigerian Naira
- UAHN: backed by Ukrainian Hryvnia
One of the most interesting features of this protocol is that the WAVES and the USDN connect to the Ethereum blockchain. That is why the Neutrino USD protocol has access to several liquidity pools and decentralized applications on the Etherum blockchain. More developers integrate Neutrino USD into other chains such as IOST, Solana, and Tron. Soon, the Neutrino USD will be integrated with Finance, compound, Aave, and more.
The relation between the Neutrino USD and Decentralized Forex or DeFo
DeFo stands for decentralized Forex. It is one of the most extraordinary integrations between USDN and a dApp that enables users to convert fiat currencies and stablecoin in no time.
The platform’s reliability and abundance are provided through the Neutrino USD smart contracts. The DeFo is a great tool that acts as a bridge between fiat or other commodities and cryptocurrencies.
What is BR or baking ratio?
Backing Ration is the ratio of the locked WAVES in proportion to the overall NSBT in circulation. As an investor, you should always consider the Backinb Ration or BR growth before trading USDN. There are also three determinants of BR, including:
- Increase of over-collateralization of WAVES
- Increase in the WAVES open market
- Rise of the number of WAVES in reserve resulting from the issuance of new NSBT tokens.