Neutrino USD, $USDN

Description

USDN is a decentralized algorithmic & crypto-backed stablecoin in the Waves Ecosystem. It is pegged 1:1 to the USD through an algorithmic stability mechanism based on a targeted backing ratio of 1.5 (in Dollar terrms) with Waves native cryptocurrency WAVES. If the backing ratio falls below 1, the protocol issues NSBT (Neutrino Governance token) in a bonding mechanism at a value below 1 USDN which can be exchanged in a 1:1 ratio against USDN as soon as the peg is restored. The main purpose of USDN is to boost Wave's defi ecosystem which offered a high yield for USDN staker making it an interest-bearing stablecoin. The stablecoin has depegged already twice but was always able to repeg again. However, the risk of experiencing a death spiral as seen with UST is imminent.

Risks

• Smart Contract Risk
• Death Spiral under adversarial conditions (Bank run scenario)
• Loss of all funds
• Hyperinflation of price-floating coin