What is Neutrino USD?
Neutrino USD is a stablecoin built on the Waves blockchain, which is an algorithmic protocol that enables the creation of stablecoins pegged to specific real-world assets, such as national currencies or commodities. The Waves platform is responsible for its development and collateralisation, and the protocol’s token, USDN, is a US-dollar-based stablecoin that is fully collateralised by WAVES tokens, which are locked in smart contracts to mint USDN. The token is pegged 1:1 to the US dollar.
The Neutrino project was launched in 2019 by Waves and in August 2020, it migrated Neutrino USD to the Ethereum network to improve access to liquidity for its product and to provide more choices in the decentralised finance (DeFi) industry. After its first year, the protocol had amassed a market value of more than US$120 million USDN. The protocol enables crop farming by using a completely new approach introduced to the Ethereum blockchain, and within three months of its deployment, Neutrino USD became one of the most popular decentralised apps (dapps) on Waves' mainnet.
Neutrino introduced its decentralised foreign exchange (DeFo), an extension on top of the Neutrino protocol that facilitates instant swaps of stable-price assets tied to popular national currencies or commodities. DeFo is an open-source solution that can also be integrated into any other interface and is aimed at providing a frictionless bridge between fiat and crypto.
The USDN stablecoin is one of Neutrino's nine assets: Neutrino EUR (EURN) is pegged to the Euro, Neutrino CNY (CNYN) is pegged to the Chinese yuan, Neutrino JPY (JPYN) is pegged to the Japanese yen, Neutrino RUB (RUBN) is pegged to the Russian ruble, Neutrino UAH (UAHN) is pegged to the Ukrainian hryvnia, Neutrino NGN (NGNN) is pegged to the Nigerian naira, Neutrino BRL (BRLN) is pegged to the Brazilian real, Neutrino GBP (GBPN) is pegged to the British pound, and Neutrino TRY (TRYN) is pegged to the Turkish
USDN, on the other hand, is the stablecoin of the Neutrino protocol, pegged to the value of the US dollar. It can be used for a variety of purposes, such as making payments, trading on decentralised exchanges, or participating in DeFi protocols. Because it is pegged to the value of the US dollar, it is less volatile than other cryptocurrencies, making it a more stable option for transactions and investments.
One of the main advantages of Neutrino USD is its ability to create a variety of stablecoins pegged to different real-world assets, such as national currencies or commodities. This allows users to take advantage of the benefits of blockchain technology while still maintaining the stability of traditional fiat currencies. Additionally, the Neutrino protocol's DeFo feature allows for instant swaps of stable-price assets, providing a seamless bridge between fiat and crypto.
Overall, Neutrino USD is a stablecoin protocol that aims to increase the adoption of blockchain technology by providing a stable and reliable option for transactions and investments. Its ability to create a variety of stablecoins pegged to different real-world assets, along with its DeFo feature for easy swapping of assets, make it a versatile and valuable addition to the DeFi ecosystem. However, being a stablecoin it also has some risks, such as the price manipulation accusations and the sudden drop of price, as it happened in 2022.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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