Neutrino USD (USDN) - another algorithmic stablecoin. Will he defend himself or die?

The collapse of the Terra system and the sell-off of the related cryptocurrencies LUNA and the UST stablecoin had a wide impact not only on the cryptocurrency market. So some began to foretell the demise of all stablecoins algorithmic that have no real security, e.g. in US dollars. Meanwhile, not everyone knows that the Neutrino USD stablecoin from 2019 is secured by the Waves token and is doing quite well.

We are continuing the cycle of the Forex Club portal in which we analyze and describe the largest, highest-valued, most interesting, most developing, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for the Neutrino USD, an algorithmic stablecoin that maintains a value of 1: 1 against the US dollar.

What is Neutrino USD

Neutrino USD is a stablecoin secured by Waves tokens. It was established in 2019 by Ventuary Lab, together with KozhinDev and Tradisys. Already in the first 12 months, coins worth over USD 120 million were minted thanks to the innovative technology of the Ethereum network.

The Neutrino USD tokens were prizes for betting on a liquidity pool, as well as making cryptocurrencies available for loans. Of course, the whole thing was supervised by smart contracts, which paid out pre-set rewards, and also ensured price stability by selling tokens at a lower price as soon as it increased over $ 1. It works the other way too, and the liquidity is ensured by staking Waves tokens, along with the need to automatically convert to USDN. 

How Neutrino USD (USDN) works

Users primarily earn USDN staking. This can be done both in Etheruem and Binance Smart Chain, because the protocol is supposed to be interchain. Ultimately, it is to be interoperable also in the field of all major networks: Solana, IOST, Tron, etc.

As a result, further synthetic assets are created, which are selected by the community in voting. Each has its own liquidity pool and helps users in different countries to enter the market more easily by purchasing a stablecoin for their own fiat currency. Therefore, there are already more digital resources in the USDN protocol, such as: EUR (EURN) linked to the euro, TRY (TRYN) - related to the Turkish lira, JPY (JPYN) - related to the Japanese yen, BRL (BRLN) - related to the Brazilian real, CNY (CNYN) - Related to Chinese Yuan, UAH (UAHN) - associated with the Ukrainian hryvnia, GBP (GBPN) - linked to the British pound, RUB (RUBN) - related to the Russian ruble or even NGN (NGNN) - Related to the Nigerian Naira. 

This makes converting with currencies easier and creates more stablecoins. And the larger the system, the more difficult it is to attack it and cause uncontrolled changes - as was the case with Terra. 

Everything is based on staking USDN and Waves tokens. The more of them are "frozen", the easier it is for smart contracts to maintain price stability. There is only one way to encourage it - interest. That's why the network offers a range of financial products - from deposits to liquidity pools to loans - to ensure that users get the most share of the profits that are paid out on a daily basis. Part of the transaction fees all the time goes to user accounts in the form of USDN, which often increase the pool frozen in the project and further improve its stability. Mostly because Waves stacking is also rewarded in USDN. The average interest rate has recently been 8-15% per annum, which for stablecoins is an offer above the market average, not to mention compared to deposit offers in traditional banks.

Cryptocurrency Quote Neutrino USD (USDN)

As of May 25, 2022, Neutrino USD tokens can be purchased on 16 cryptocurrency exchanges from around the world. There are currently 868 coins in circulation, which translates into a market cap of over USD 562 million. There has been one - albeit short-lived - price spike in the history of stablecoin. On March 895, 868, USDN was trading briefly at $ 20.