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Algorithmic Stablecoin Neutrino Launches Staking Rewards for Its Governance Token NSBT

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NSBT pledge operations can be performed through the Waves.Exchange interface.

Rhythm BlockBeats news, on December 9, the algorithmic stablecoin Neutrino protocol announced the launch of staking rewards for its governance and utility token Neutrino System Base Token (NSBT).

Neutrino uses an innovative combination of staking backing and algorithmic supply changes to create a variety of algorithmic stablecoins. Its own pair of native stablecoins, USDN and NSBT are available on Ethereum as ERC-20 tokens.

The generation mechanism of USDN relies on the native token WAVES of the WAVES platform. Oracles will read the price of the asset and create a quantity of USDN based on the current price of WAVES. Thus, these assets form a collateral pool that supports USDN stability. The reverse process can be done at any time, redeeming USDN for WAVES based on the current market price. However, this mechanism will only work if the price of WAVES grows or remains stable. If the currency falls, the stablecoin reserves will eventually be less than the number of tokens in circulation. This is where mechanisms that rely on NSBT come into play.

Users need to hold NSBT tokens first to participate in obtaining staking rewards, and then they can stake NSBT through the Waves.Exchange interface operate.