Great job all the best
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Great project, we should support!
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Both platform would hugely benefit from this. Besides, I have yet to see an algorithmic stablecoin that is as sophisticated as USDN.
USDN is simply and quintessentially the shit.
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USDN is a good stable coin project in terms of its stable and sustainable interest generation mechanism which is rooted in the core economy of Waves.
As Waves is a growing ecosystem, its growth brings alot of health and sustainability to USDN, as long as blocks are mined on Waves, interest would always be generated for USDN. USDN inherits all economic advantage offered by Waves
Again, the price stabilization mechanism is another important feature on USDN. A mechanism that is capable of maintaining USDN price at the rise or drop of the price of collaterized asset (in this case WAVES)
it will be a win win for the community
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yep agree…great chance for Aave to showcase the effectiveness and full transparency that algorithmic stable coins can offer!
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That’s a very interesting idea. Wouldn’t that mean that the borrower could also affort paying slightly higher interest rates. I would guess that there will be an equilibrium so that both, the lender and the borrower have and advantage of USDN on Aave. What do you think?
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Yeah should be since lender’s usdn would bring interest otherwise. So maybe a higher interest for the lender, and the borrower can speculate on going short on his given collateral, but can get interest on it’s received usdn too…
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Hey everyone,
I’d like to add a few thoughts for consideration as to why I believe $USDN would be beneficial for the AAVE community. (in full disclosure, I’m a strategic advisor for the Waves Association, the foundation funding all innovation inside Waves’ ecosystem)
Aave, since its inception, has always tended to offer the most used or innovative assets. Without diving into too much shilling, I’d like to elaborate on why $USDN fits these requirements.
In short:
- unique, yet sustainable APY inherent to underlying mechanism (~ 8 to 20%), attractive for yieldfarming
- exponential growth in TVL and userbase over the last weeks
- lending/borrowing would facilitate a well-rounded fit in the overall DeFi ecosystem
To elaborate:
-
$USDN’s mechanism:
a) Neutrino is a smart contract on Waves’ chain. This smart contract allows for swaps between $WAVES and $USDN.
b) You can send $WAVES to the contract (eg. 1000 $WAVES), the contract will send $USDN back, based on the price (eg. 7,5 -> 7500 $USDN). You now no longer own the $WAVES tokens, these are owned by the contract, but you own the $USDN.
c) All $WAVES owned by the contract is auto-staked, generating LPoS rewards, ~ 6% APY. These rewards are also auto-converted to $USDN. This yield is paid out not to the total $USDN supply, yet only to those who are staking $USDN.
d) Over time, Neutrino’s contract has shown to be largely over collateralized, reporting a total supply of around $100 million, with a collateral TVL of $250 million. This collateral is generating disproportionate leasing rewards for those who stake, leading to high APY’s, usually 15% but we have reported moments of 25%.
e) Conclusion: These yields are not borrow/lend and market opportunity dependent. They are a sustainable mechanism, without risk for liquidation. (Reserve balance is managed differently, more on that later). Moreover, this mechanism is unique and, should additional borrow/lend yield be added, will lead $USDN to be a highly attractive yield farm asset. -
exponential growth:
a) Neutrino was conceptualized on Waves Protocol. Once established, it was ported to Ethereum, leveraging unique Waves features, but bringing them to a larger audience that would benefit, but inside the comfort of their usual environment = DeFi on ETH.
b) After integrations in Uniswap, 1inch, Zerion and a few others, Curve.fi integrated $USDN and made a dedicated 3Pool. This lead to a drastic change in growth speed, quickly amassing over $130 million in Pool size in a matter of weeks and still counting. Curve.fi is set to pay out around $400,000 in amassed $USDN yield to the LPs, since all ERC-20 $USDN automatically compounds its ‘core’ yield, like an aToken.
c) the $USDN pool on Curve has been the most profitable pool for the majority of the last few weeks, largely due to the additional yield mechanic -
lending/borrowing:
The entire DeFi space is lego-blocked onto each other, yet in almost all cases, the start of the ‘yield chain’, is yield from borrowing/lending. $USDN currently does not yet have this additional yield factored in and through Aave it could become a more well-rounded DeFi base ‘block’. Ultimately this will innovative combination will lead to higher yields for the Aave community and set a new precedent, challenging others to stay competitive.
Happy to explain more if needed, thanks for reading through
Regards,
Lockholm
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NSBTxAAVE should be reality
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Hi all!
Below is a preliminary risk assessment of USDN based on the AAVE risk assessment framework.
Neutrino USD (USDN) is an algorithmic stablecoin pegged to the US dollar and backed by WAVES, based on Neutrino, a price-stable assetization protocol acting as an accessible DeFi toolkit. Neutrino enables the creation of stablecoins pegged to specific real-world assets, such as national currencies or commodities. Before AAVE, USDN was listed on Waves.Exchange, Uniswap, Curve, 1Inch (Mooniswap), Zerion, and SwopFi.
USDN Smart contract Risk: C+
Initially, USDN was represented by a set of five interacting smart contracts written in the programming language RIDE and deployed to Waves blockchain, launched in November 2019. The Waves smart contracts have undergone a security audit by the Beosin security agency. Since then, USDN has been extended via its cross-chain capabilities onto Ethereum and Binance Smart Chain. The porting of USDN to other ecosystems is an example of the advantages of cross-chain capacity of the Neutrino protocol. However, this also increases the overall complexity of the system, making security audits a more demanding task. The Ethereum USDN contracts are more recent and have fewer transactions in comparison with the Waves-based token.
USDN Counterparty Risk: B-
USDN is an open-source decentralized stablecoin supported by Waves Association, a non-profit organization dedicated to the global adoption of the Web 3.0 paradigm with an outstanding track record, and developed by a decentralized cohort of development teams. The oracle subsystem is currently being decentralized via cooperation with the Gravity protocol, a blockchain-agnostic oracle network. With a centralization risk of C+ and trust risk B, this evaluation yields an average of B- for the counterparty risk.
USDN Market Risk: B
At the time of writing, USDN is the world’s 11th biggest stablecoin and the top algorithmic stablecoin by market cap outside the Ethereum ecosystem. The total market capitalization of USDN has reached $100 mln within the Waves ecosystem and $75 mln on Ethereum. Liquidity is provided on DEXes such as Uniswap, Curve, 1Inch and on a number of leading crypto exchanges, including Kucoin, Bittrex and Hotbit, with an average daily volume of $2.5 mln and an impeccable record of price stability that sustained multiple price dumps. In the event of a substantial market instability, the so-called emergency oracles of the Neutrino system can unilaterally trigger an emergency shutdown of the smart contract operation. To further stabilize the tokenomics of USDN, the Neutrino system includes the so-called Neutrino Token (or Neutrino System Base Token - NSBT) which ensures stability of reserves on the Neutrino smart contract and is used for protocol governance. For the entire year of its existence, USDN has been growing steadily including the amount of collateralized USDN, the amount of WAVES locked on the smart contract, while NSBT seamlessly supported and complemented this system.
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USDN is one of the fastest-growing stablecoins on the market right now. [2]
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USDN would definitely be a worthy addition and a great boost for both AAVE and the Neutrino protocol
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Adding USDN and NSBT is a win win for both communities.
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Holy shit!
Where is USDN in Aave???
I’m anxious 
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Is there any update on adding this? Would be great.