What Is Neutrino USD (USDN)? How It Works & Where To Buy It?

Neutrino USD (USDN) is a stablecoin created by the Neutrino protocol. USDN is an algorithmic stablecoin pegged to the US dollar.

USDN is a popular algorithmic stablecoin that has grown in adoption over recent months. The Neutrino protocol has established itself as an innovative and trustworthy blockchain protocol that offers users innovative products.

USDN is currently the 7th largest stablecoin by market cap, and the 53rd largest cryptocurrency overall.

How Neutrino Protocol & Neutrino USD (USDN) Works

The Neutrino protocol is an innovative assetization protocol that allows users to create their own stablecoins. These coins can be backed by cryptocurrencies or by real-world assets. The protocol achieves this by implementing stablecoin toolkits that allow individuals or institutions to seamlessly build their own stablecoins that are algorithmically backed.

Neutrino relies on smart contracts, which are run on the Waves blockchain, to achieve optimal efficiency and security for the protocol.

These smart contracts are capable of interacting with each other because they use the same programming language called Ride. Because the protocol makes use of the Waves blockchain, the WAVES token plays a significant role in Neutrino’s ecosystem.

The Neutrino system consists of multiple cryptocurrency assets, and USDN is the protocol’s stablecoin, while NSBT is the governance token of the Neutrino protocol.

The Neutrino stablecoin is pegged to the US dollar and is said to be backed by the WAVES cryptocurrency.

The Neutrino protocol leverages the staking model of the Waves platform to benefit from its underlying consensus algorithm, allowing users to earn yields of up to 15% APY. These yields are especially high for a coin that maintains a stable price. More volatile assets are typically higher yield-bearing than assets that are pegged to the USD price.

The Neutrino USD price is pegged to the dollar, but when analyzing the live Neutrino USD price you might notice some minor price fluctuations. These fluctuations are normal and are a result of deviations in the assets backing USDN.

The specific real-world assets backing USDN will fluctuate according to supply and demand, and the protocol utilizes a smart contract for every transaction that takes place on the network. All operations involving USDN are secured by smart contracts, ensuring that USDN price statistics are reflected accurately and that the protocol maintains transparency and integrity.

Users seeking to learn more about the protocol’s functionality can refer to the Neutrino whitepaper for a more detailed description.

What Is Neutrino USDN Used For?

Neutrino stablecoin tokens are used to avoid volatility in the cryptocurrency market. Stablecoins play a vital role in the crypto space because investors shield themselves from volatile crashes and ensure that their portfolios don’t take a knock.

Stablecoins like Neutrino are most frequently used when market conditions are uncertain, claiming profits from cryptocurrencies, and waiting to enter a particular trade.

Stablecoins maintain their price and experience only minor fluctuations; the main reason investors purchase stablecoins is that they maintain price stability. It should be noted that holding stablecoins in your portfolio wouldn’t give you exposure to potential profits like many other volatile cryptocurrencies would. Stablecoins’ main utility is to decrease risk exposure.

Where To Buy Neutrino USD (USDN) Stablecoin

USDN has the 7th largest stbalecoin market cap and has quickly grown to become one of the most used stablecoins on the market.

USDN tokens can be purchased on several centralized and decentralized crypto exchanges. But, before you’re able to purchase USDN, you’ll need to deposit fiat money onto an exchange, and sequentially USDN tokens will be credited to your USDN digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store the USDN.

Five of the most popular crypto exchanges are:

1. Binance
2. Coinbase
3. KuCoin
4. HTX
5. Crypto.com

All of the above exchanges allow users to buy, sell, transfer and store USDN in a digital wallet on the exchange. You can use your debit or credit card to purchase USDN on centralized exchanges. Alternatively, you can also use the p2p option which is available on most exchanges.

If you intend on transferring your USDN tokens to a wallet off of the exchange – you can choose to send them to a wallet such as Metamask or other compatible wallets.

Individuals are required to transfer their tokens to an off-exchange wallet to participate in most DeFi products like staking, farming, and liquidity provision.

How long has Neutrino USD (USDN) existed?

Neutrino USD was initially launched in 2019 and quickly grew to become the world’s 11th largest stablecoin. Since then, the stablecoin has performed incredibly well and is moved up four places to become the seventh-largest stablecoin in the world.

The protocol has seen a large number of new retail and institutional investors, and many individuals consider the project to be among the most credible and transparent in the crypto market.

What’s Controversial About Neutrino USD (USDN)?

The blockchain and crypto space is plagued with scam projects, bad actors, and projects that promise a lot more than they can actually deliver on. Most retail investors don’t take enough time to learn about the fundamentals in the crypto space – they are driven by the excitement, media, and the radical gains that other people are experiencing.

This lends itself to conditions where under-educated retail investors end up losing large amounts of money. Before investing in any cryptocurrency, it’s essential to learn as much about the project as possible. Research the problems the project solves, the team behind the project, partnerships, tokenomics, and any other important information.

Let’s take a look at the top controversy surrounding USDN.

• Algorithmic Stablecoins Aren’t Trusted By Many – The stablecoin sector is considered one of the most controversial crypto sectors. There’s a lot of negative publicity surrounding many of the stablecoin projects, and many individuals are concerned that these projects aren’t as transparent as they claim to be. Stablecoins that are algorithmically backed are considered to be even more controversial.

  Most recently, UST, which was the fourth-largest stablecoin at its peak, crashed and burned after the Luna protocol collapsed. The Neutrino stablecoin is going to have to remain innovative and maintain price stability to ensure that it grows its user adoption. This is especially important for algorithmically-backed stablecoins as they’re deemed less trustworthy by the general market.

How many USDN tokens are there?

At the time of writing, USDN has a circulating supply of 796,724,929.15 USDN.

The total supply of USDN is 796,724,929.15 USDN.

Can USDN be mined?

USDN can’t be mined. The issuance of USDN tokens is linked directly to the WAVES cryptocurrency.

USDN token holders can stake USDN and earn yields of 15% APY on their tokens. Additionally, some decentralized platforms also offer generous rewards for individuals participating in DeFi products such as staking, farming, and liquidity provision.

What is the Market Cap of Neutrino USD (USDN)?

The market cap of USDN is:

USDN market cap = total amount of coins in circulation x current market price of USDN

USDN Market Cap = 796,724,929.15 USDN x $1 = $796 million

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Neutrino USD (USDN)

USDN has multiple competitors in the stablecoin sector. The stablecoin sector is dominated mainly by USDT and USDC, which account for more than 80% of all the value stored in the sector.

USDN’s competitors are:

• Tether (USDT)
• USD coin (USDC)
• Binance USD (BUSD)
• TerraUSD (UST)
• DAI
• TrueUSD (TUSD)
• Pax Dollar (USDP)

What are the Future Plans for Neutrino Protocol & USDN?

Neutrino utilizes a combination of real-world assets and backing from WAVES to maintain its peg. However, these innovative systems still haven’t managed to propel USDN to the top of the stablecoins list.

The Neutrino protocol offers innovative decentralized forex options to users and an incredibly easy-to-use and accessible DeFi toolkit to developers seeking to deploy their own stablecoins.

Going forward, Neutrino will look to increase user adoption, the utility of its assets, and the value held in its ecosystem.

Pros and Cons of USDN

Pros:

• Unique Mechanism – USDN is backed by both fiat assets and the WAVES cryptocurrency.
• DeFi Toolkit – Individuals and institutions can make use of Neutrino’s lucrative stablecoin toolkit to easily create their own stablecoins. Many individuals consider this to be a revolutionary bit of tech and this is a major part of why the Neutrino protocol has become so popular recently.
• One Of The Largest Stablecoins – USDN is currently the 7th largest stablecoin by market cap.
• Easy Money Transfer -Stablecoins are great to use for money transfers because their prices remain stable. Many individuals choose to pay remittances with stablecoin because of this reason. The stable price assets market continues to grow as individuals lose trust in traditional remittance systems which are much more costly.

Cons:

• Competition – The stablecoin sector is dominated by two main stablecoins: USDT and USDC. These two stablecoins control a major portion of the total value in the sector. Most emerging stablecoins don’t manage to cement a place at the top because USDT and USDT have already secured such large retail investments and established massive amounts of credibility.