The Neutrino Dollar, also called USDN, is an algorithmically stable coin that is part of the Waves ecosystem. Since it is tied to the US dollar, it has the same value as the US dollar. Holders of USDN are safe from the volatile cryptocurrency markets because USDN is tied to USD.
Waves’ USDN stablecoin, which came out at the end of 2019, was made with the Neutrino system. The price of USDN stays stable because of an algorithm in the Neutrino protocol that is backed by WAVES that are kept in the smart contract. Anyone can check to see if the smart contract is actual and if the information above is correct.
One of the most significant differences between USDN and other stablecoins is that it can be used on multiple chains. Unlike most other stablecoins, USDN can be bought on Ethereum, the Binance Smart Chain (BSC), and Polygon, in addition to the Waves blockchain. This means that users don’t have to pay anything to move tokens from one network to another. Instead, they can buy USDN directly from each network. Also, the user’s USDN is automatically bet in percentages that add up. This gives the user a 12–15% annual percentage yield (APY) if they do nothing. If you want to know more about bitcoin, then you can go through this URL.
CoinMarketCap said that at the beginning of October 2021, there was $565 million worth of USDN on the market. The smart contract says that the USDN TVL, another way to tell the total amount of money that is blocked, is $1.5 billion.
In other words, the number of assets is 167.53% higher than the number of USDNs. Because of this, the USDN token is always the same and can be counted on. A few days after USDN was split from the USD, Sasha Ivanov, the CEO, and founder of Waves, said that his new stablecoin would not be divided from the USD.
“I’ll make a new stablecoin,” the person who made Waves said. He also said that a “USDN crisis resolution plan” would be made before the new stablecoin was made. He was clear that the USDN plan would not be resolved until something new was shown or said. Ivanov has also noted that the stablecoin’s price won’t change.
Ivanov says that the fact that the current USDN model is not set up for the current market conditions is one of the main reasons why the USDN is falling. He also said that more robust models should be made. He noted that USDN was a “stablecoin based on incentives” and said the following:
“Black swan” events are not considered by incentive-based models, which is a shame. These models work in 99.9% of market situations, but they can’t handle significant changes in the market.”
Waves don’t plan to give up on the USDN stablecoin, even though it has some problems.
Neutrino USD is a crypto-backed stablecoin based on an algorithm tied to the US dollar’s value. Waves back Neutrino USD. The 1:1 peg for the USDN stablecoin has been hard to keep and has yet to be kept very often in 2022.
At the beginning of April 2022, USDN had its first significant drop, which brought the stablecoin down to $0.8. The stock has crashed more than once since then. The USDN fell to $0.53 during the last crash. Since then, the tok was often worth less when it lost its peg. CoinGecko said that one USDN coin was worth $0.58 when this article was written.
The South Korean cryptocurrency exchange group Digital Asset eXchange Alliance (DAXA) warned about WAVES on December 8. The price of cryptocurrency went down a lot because of this. Since the DAXA sent out the warning, the value of WAVES has dropped by almost 30%, according to CoinGecko.
The unique “staking” feature of the USDN protocol, which is based on how the Waves blockchain works from an economic point of view, can be used by people who own USDN. The average annual return on staking USDN is between 12 and 15%, and the interest is paid daily in USDN. The stock market is not the best place to invest USDN.
