Neutrino

Algo-Stables

Neutrino is an algorithmic price-stable protocol built on the Waves blockchain. It enables the creation of stablecoins pegged to specific real-world assets like fiat currencies or commodities.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Enables the creation of synthetic assets via a permissionless decentralized platform.
What we like less
The ecosystem is highly reflexive as it relies on the USDN stablecoin as the primary souce of collateral, which in turn depends on the WAVES blockchain token.
What it means for you
Offers you a simple way to get exposure to algorithmic price-stable assets including stablecoins, synthetic assets, and other foreign exchange assets.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: NSBT
  • Tags: Algo-Stables
Key Metrics
  • TVL: $2.7M (Rank #160)
  • TVL Ranking by Algo-Stables: #0
  • Blockchain: Waves
  • Chain TVL
    • Waves: $2.65M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code not reviewed by any experienced auditors
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched recently in 2023; maturity less than three months increases technical risk as smart contracts are not battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Several critical governance issues documented
  • Low voting power concentration reduces risk
Protocol Design
  • Protocol is susceptible to death spirals
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Neutrino

How Neutrino works

The Neutrino system consists of 4 core tokens: WAVES, USDN, NSBT and SURF. WAVES is the core blockchain token for the Waves blockchain used to pay transaction fees. It also serves as collateral to mint USDN, the main Neutrino stablecoin. USDN is an algorithmic stablecoin pegged to USD that serves as collateral for all other Neutrino assets. NSBT is a recapitalization and governance token that ensures stability of the USDN collateral reserves. New NSBTs are issued for locking WAVES in a contract; this acts as additional backing to insure the system against deficits. When the value of WAVES tokens in USDN backing falls, it allows users to speculate on the Backing Ratio (BR) parameter. SURF is the derivative token that is designed to improve the mechanics of recapitlization of USDN reserves. Users receive SURF by locking WAVES or USDN in a contract only when the BR is <100%. The locked WAVES is added to the existing reserves to provide additional capitalization for USDN reserves (and increase BR), while the locked USDN is burned which reduces the total circulating supply (and also increases BR).

How Neutrino makes money

Neutrino charges a swap fee for every swap between USDN and WAVES within its ecosystem. Swaps between USDN and foreign exchange assets also incur a fee.

How you make money on Neutrino

You can stake NSBT (gNSBT) to receive daily rewards generated from protocol fees, including a percentage of the collected WAVES and USDN and foreign exchange swap fees. USDN can also be staked to earn fees from leased collateralized WAVES reserves (paid in USDN). Currently, 5% of generated WAVES are distributed to USDN stakers.