Neutrino is an algorithmic community-governed cryptocurrency protocol launched on the Waves blockchain in November 2019. It was designed to enable stablecoins issuing and aims to make its assets accessible on various blockchains. It is registered under the jurisdiction of Seychelles as its headquarters are located on the island of Mahe, Seychelles.
Neutrino is an open-source project, as different teams are involved in its development. Most of the work on Neutrino is done by Waves.Exchange, Ventuary Lab, and Tradisys teams. The development of the platform is funded through donations, grants, and self-funding. Neutrino’s smart contract tamper resilience was confirmed by Beosin Technology, an independent audit company.
In September 2020, the Decentralized Forex (DeFo) extension, which can be integrated into any interface, was launched on top of the Neutrino protocol. It is available on Waves.Exchange and provides reliable, transparent, and instant swaps between fiat money and cryptocurrencies as well as stablecoins staking. It is especially useful for residents of countries with poor banking systems.
The Neutrino protocol enables the creation of stablecoins tied to specific real-world assets such as national currencies or commodities. Neutrino stable assets are equivalent to their fiat counterparts at a 1:1 ratio. Their list includes USDN pegged to the US dollar, EUR pegged to euro, CNYN pegged to Chinese yuan, RUBN pegged to the Russian ruble, UAHN pegged to the Ukrainian hryvnia, JPYN pegged to the Japanese yen, NGNN pegged to the Nigerian naira, BRLN pegged to the Brazilian real, GBPN pegged to the British pound, and TRYN pegged to the Turkish lira.
The Neutrino system relies on 3 main tokens: WAVES, USDN and NSBT. WAVES is the Waves blockchain token used for paying transaction fees. Neutrino USD supports other stable assets and NSBT provides system stability.
All Neutrino users' funds are stored in an algorithmic stablecoin called Neutrino USD (USDN). It is the first interest-bearing stablecoin created on the Waves blockchain. It is pegged to the US dollar at a 1:1 ratio and backed by the WAVES token. Users can utilize WAVES as collateral to mint USDN. In addition to the Waves blockchain, the USDN token is available in the Ethereum and Binance Smart Chain ecosystems.
In case of USDN’s insufficient collateralization, users can buy the token with a discount and redeem it through the smart contract when the ratio is restored to $1. If USDN becomes over-collateralized, the NSBT price rises linearly followed by a sharp increase, meaning that there is an over 50% surplus in the reserve fund.
Initially, the maximum number of USDN was set at 1 trillion coins, which were issued and locked in the contract without any pre-allocation or premining. The only way to access locked assets is to exchange WAVES for USDN through a smart contract. Mined WAVES tokens are automatically converted into USDN tokens, which are then distributed among USDN stakers.
Traders have the opportunity to swap USDN via the smart contract in a special dashboard without any registration or KYC. All generated USDN are available for trades or transfers. All USDN token issuance operations such as USDN to WAVES swaps and vice versa are subject to protocol fees collected in USDN or WAVES, which are accumulated and allocated among NSBT stakeholders.
Neutrino assets allow users to gain profit by staking and yield farming. USDN is staked automatically, and daily rewards are sent right to users’ wallets. Staking USDN allows users to get a passive income of up to 12% APY. Staked tokens can be sent to farms and get a yield of up to 100%.
USDN can be bought on the Neutrino website and a range of exchanges such as Waves.Exchange, Curve, Uniswap, Bittrex, and Mooniswap. To increase demand and maintain a stable exchange rate, USDN coins are subject to periodic burning.
Neutrino Token or NSBT is a utility token created to ensure the stability of reserves on the Neutrino smart contract through the reserve recapitalization mechanism. NSBT stands for Neutrino System Base Token. The maximum NSBT supply is limited to 2,835,689 coins. Although NSBT is based on the Waves blockchain, it is also available as an ERC-20 token on Waves.Exchange and Uniswap.
The main NSBT use cases are recapitalization, governance, staking, yield farming, and supporting liquidity pools of Decentralized Forex. As a recapitalization token, NSBTs are issued to lock WAVES in a smart contract. NSBT stakeholders can earn a portion of operations commissions.
As a governance token NSBT allows the Neutrino community members to choose future Neutrino assets and decide on protocol parameters by voting. 1 NSBT equals 1 vote. The more NSBT you send, the more weight your vote has. When the voting is complete, tokens are sent back to users.
NSBT staking is available through the Waves.Exchange and allows users to get daily rewards in USDN and WAVES. Rewards are determined by the user’s staking balance in each block and are calculated for every 1,440 blocks. NSBT tokens can be obtained by purchasing on an exchange or issuing through a smart contract. Issuing means a swap of WAVES to NSBT and can be done on Waves.Exchange.
Neutrino team and partners
Aleksei Pupyshev and Ilya Sapranidi are the masterminds and founders of Neutrino. They are creators and core developers of the Gravity protocol. Aleksei is also a product advisor at Neutrino and a founder of Ventuary Lab who previously worked for HitBTC and Mail.ru group. Ilya Sapranidi, an expert in innovative entrepreneurship, is also the Head of Research at Ventuary Labs and Head of Product at Gravity. Furthermore, Ilya and Aleksei developed the Decentralized Autonomous Organization on Waves blockchain together.
Neutrino collaborates with 1inch, a DEX aggregator, to create a bridge between the Ethereum network, Neutrino USD, and other tokens from the Waves ecosystem. The integration between Neutrino and the Chainlink Network helps to provide seamless transfers of USDN and other tokens between the two blockchains. Chainlink also provides regular validation of USDN backing reserves, ensuring that full collateralization is maintained. The Neutrino extension to DeFi services has been driven by a range of new partnerships with such entities as Band Protocol, and Mooniswap, Curve, and Zerion.