Neutrino Protocol — an algorithmic, price-stable activation protocol that allows the creation of stablecoins, pegged to real assets or cryptocurrencies.
About the Neutrino Protocol project
The Neutrino Protocol is represented by a set of interacting smart contracts, written in the Ride programming language and deployed on the Waves blockchain. Most operations with the Neutrino protocol are currently available through the Waves.Exchange interface. Navigating the Waves blockchain is possible by using the Waves Explorer and community-driven services such as Pywaves or w8io.
The Neutrino system mainly consists of 4 main tokens: WAVES, USDN, NSBT and SURF.
| WAVES | the main token of the Waves blockchain, used to pay transaction fees. It serves as collateral for USDN, Neutrino's main stablecoin. |
| USDN | algorithmic stablecoin, pegged to the US dollar. It serves as collateral for Neutrino's other stable assets. |
| NSBT | recapitalization and management token of the Neutrino protocol, which ensures the stability of USDN collateral reserves. |
| SURF | a derivative token, designed to improve the USDN reserve recapitalization mechanism. |
Neutrino stable assets — digital assets that serve as the equivalent of their underlying real-world counterparts. For example, EURN is pegged to the euro at a 1:1 ratio. All Neutrino assets use the underlying Waves blockchain consensus algorithm to provide staking that incentivizes users to own assets.
More about the mechanism of work
In addition to the Waves blockchain, USDN and NSBT tokens are also available on the Ethereum and Binance Smart Chain ecosystems. In general, there are five types of network and off-chain entities in the Neutrino system that interact with each other and are interconnected by smart contracts:
- Users: anyone with a Waves account (usually managed through the Keeper Wallet and Waves Signer extensions).
- Price oracles: a set of pre-defined accounts that feed market prices from various sources into the blockchain.
- Pacemaker oracles: any Waves account (usually a bot) that initiates transactions and handles complex calculations. Pacemaker oracles are required for the system to work due to the non-Thuringian nature of the Ride language and computational complexity limitations.
- Waves full node: the Waves node on a peer-to-peer blockchain network, powered by the Leased Proof of Stake algorithm. It accumulates and distributes block rewards for the Neutrino dApp. As of 2022, all Neutrino reserves are leased to community nodes.
- Emergency oracle: an account, chosen by the community with special privileges to stop protocol operations in the event of a malicious hack attack on the smart contract infrastructure.
Decentralized Forex or DeFo — an extension, built on top of the Neutrino protocol, that allows you to instantly exchange price stable assets, pegged to popular national currencies, indices or commodities. The first DeFo interface was implemented by Waves.Exchange.