Neutrino Protocol

The ​Neutrino protocol is an algorithmic price-stable assetization protocol that enables the creation of stable coins tied to real-world assets or cryptocurrency. The Neutrino protocol is represented by a set of interacting smart contracts written in the programming language Ride and deployed to the Waves blockchain. Most of the operations with the Neutrino protocol are currently available through the Waves.Exchange interface. Navigation through the Waves blockchain is possible with Waves Explorer and the community-driven services like Pywaves or w8io.

The Neutrino system basically consists of 4 core tokens: WAVES, USDN, NSBT and SURF. WAVES is a core token of the Waves blockchain that is used for paying transaction fees. It serves as a collateral for USDN, the main Neutrino stablecoin. USDN is an algorithmic stablecoin pegged to the US dollar. It serves as a collateral for other Neutrino stable assets. NSBT is a recapitalization and governance token of the Neutrino protocol that ensures the USDN collateral reserves’ stability. SURF is the derivative token that is designed to improve the mechanics of recapitalization of USDN reserves.

Neutrino stable assets are digital assets that serve as an equivalent of their underlying real-world analogs. For example, EURN is pegged to the Euro in a 1-to-1 ratio. All Neutrino assets leverage the underlying Waves blockchain’s consensus algorithm to enable staking, which stimulates users to own assets.

Decentralized Forex or DeFo is an extension built on top of the Neutrino protocol that enables instant swaps between stable-price assets tied to popular national currencies, indices or commodities. The first DeFo interface is implemented by Waves.Exchange.

Besides the Waves blockchain, the USDN and NSBT tokens are also available in the Ethereum and Binance Smart Chain ecosystems.

Entities

Overall, five types of on-chain and off-chain entities exist and interact with each other within the Neutrino system, linked together by smart contracts:

Users: anyone who has a Waves account (usually managed through the Keeper Wallet and Waves Signer extensions).

1. Price oracles: a set of predetermined accounts providing a market price feed from different sources to the blockchain.
2. Pacemaker oracles: any Waves account (usually a bot) that triggers transactions and processes complex computations. It is necessary to have pacemaker oracles for the system to run because of the non-Turing nature of the Ride language and calculation complexity limits.
3. Waves full node: a Waves node within a peer-to-peer blockchain network that operates based on the Leased Proof of Stake algorithm. It accumulates and distributes block rewards for the Neutrino dApp. Since 2022 all the Neutrino reserves are leased to community nodes.
4. Note: You can find a list of full nodes at dev.pywaves.org.
5. Emergency oracle: an account selected by the community and entitled with special privileges to halt the protocol's operations in case of a malicious hacking attack against the smart contract infrastructure and reactivate it. Aside from this authority, this actor does not have any special access or control within the system.