Neutrino stablecoin launched for Waves ecosystem

Waves | 11.27| 239

The dev team, supported by the Waves Labs incubator, is introducing a beta version of a new DeFi project that aims to mitigate the volatility of cryptocurrencies.

Neutrino is a cryptocurrency with a stable price, regulated by the Neutrino Protocol algorithm and backed by an underlying token and smart contract. In other words, it is a hybrid of a cryptocurrency-backed and an algorithmic stablecoin.

How does it work?

You send WAVES to the Neutrino smart contract, which generates an equivalent value of stablecoins. In the current version, a user can generate only dollar-denominated tokens — USD-N (USD-N = $1). The team plans to expand the options to gold, oil and S&P500-pegged tokens in the future.

All WAVES deposited as collateral are leased to a Neutrino node. The mining rewards are transferred back to the Neutrino smart contract and automatically converted to USD-N tokens. Thus, USD-N owners can not only hedge volatility risks, but also earn.

To ensure the value of USD-N remains completely stable, the Neutrino algorithm manages its price with a system of derivatives and payouts. Let’s consider two possible scenarios:

  • WAVES price has fallen. An oracle ‘sees’ this and communicates it to a smart contract. The smart contract then issues and sells Neutrino bonds — USD-NB — on Waves.Exchange.
  • WAVES price has risen. The smart contract liquidates USD-NB bonds purchased on the open market for 1 USD-N each. This profits bond buyers because USD-NB was issued at a price of less than 1 USD-N.

You can generate USD-N here. No registration or KYC is required.

You can read the White Paper here. All project updates will be displayed on social media:

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