XTN
Neutrino Index Token
$0.01932
0.00%
Neutrino Index Token
XTN
$0.01932
0.00%
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Neutrino Index Token Information
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About Neutrino Index Token
Neutrino Index Token (XTN) is an algorithmic, crypto-collateralised asset within the Waves blockchain ecosystem, replacing the former USDN stablecoin. XTN is backed by a basket of tokens rather than a single asset, with its value influenced by the Backing Ratio (BR) rather than a fixed peg. It serves as a medium of exchange, staking asset, and collateral for DeFi applications. Developed under the Neutrino Protocol, XTN retains a decentralised governance model that allows the community to influence protocol decisions.
Neutrino Index Token (XTN) is an algorithmic crypto-collateralised asset operating within the Neutrino Protocol on the Waves blockchain. It was introduced as a replacement for Neutrino USD (USDN) after its peg to the US dollar became unstable. Instead of maintaining a fixed value, XTN derives its price from a basket of ecosystem tokens, with its backing ratio (BR) playing a critical role in price dynamics.
XTN functions as an index token representing the value of multiple assets within the Waves ecosystem, including WAVES, WX, VIRES, NSBT, and SURF. Its value is influenced by supply and demand as well as the BR, which is the ratio between the collateral held and the circulating supply of XTN. The protocol aims for a BR of 100%, meaning the token price gravitates toward $1 when fully collateralised. Unlike traditional stablecoins, XTN does not have a fixed peg but instead follows an algorithmic model for price stability.
Neutrino Protocol retains the decentralised governance model used in its earlier iterations. Holders of NSBT (Neutrino System Base Token) can participate in governance, voting on protocol updates, collateral asset modifications, and economic parameters. The rebranding from USDN to XTN was aimed at reducing risks associated with single-asset collateralisation and improving long-term sustainability.
XTN plays multiple roles within the Waves ecosystem and DeFi platforms:
- Medium of Exchange: XTN facilitates transactions within the Waves ecosystem, functioning as a relatively stable asset for payments and settlements.
- Collateralisation: It serves as collateral for various DeFi applications, including lending, borrowing, and liquidity provision.
- Staking and Yield Generation: Users can stake XTN within the protocol, receiving staking rewards based on collateral dynamics.
- Decentralised Finance (DeFi) Integration: XTN is used in decentralised exchanges (DEXs), lending platforms, and liquidity pools, providing further utility for traders and investors.
- Backing Ratio Mechanism: The price of XTN is influenced by the BR, and when it exceeds 115%, a portion of reserves is converted from SURF to XTN to stabilise the market.
- Governance Participation (NSBT): NSBT holders can vote on protocol decisions, including collateral adjustments and stability mechanisms.
NSBT (Neutrino System Base Token): NSBT acts as the governance and recapitalisation token within the Neutrino Protocol. When the Backing Ratio (BR) falls below 100%, NSBT helps to recapitalise reserves, ensuring the protocol remains solvent. NSBT holders also participate in protocol governance, making decisions on collateral management and stability mechanisms.
SURF (Neutrino Reserve Token): SURF plays a role in recapitalisation. When the BR reaches 115%, 10% of reserves are automatically converted from SURF to XTN, creating an incentive structure for those holding SURF tokens. This mechanism helps stabilise XTN while offering arbitrage opportunities for market participants.
The transition from USDN to XTN initiated in early 2023 due to the challenges USDN faced in maintaining its 1:1 peg to the US dollar. USDN's reliance on WAVES as a single collateral asset made it vulnerable to market fluctuations. To address this issue, the Neutrino team and its community proposed a restructured model based on multiple collateral assets.
XTN was introduced as a non-pegged, algorithmic asset backed by a diversified basket of tokens. The protocol’s goal is to maintain an optimal BR, ensuring sufficient collateralisation while allowing price discovery through market demand. The governance structure of the Neutrino Protocol was maintained, enabling community participation in key decisions regarding collateral adjustments and protocol changes.
The role of SURF as a recapitalisation token remains integral under the new system. When the BR reaches 115%, 10% of reserves are automatically converted from SURF to XTN, helping to stabilise the token’s value.
- January 2023: Development of rebranding functionality.
- End of January: Release of the XTN technical litepaper.
- Mid-February: Full rebranding of USDN to XTN.
- February - April: Governance process to add $15 million worth of ecosystem tokens as collateral.
The Neutrino Protocol, including XTN, was developed within the Waves blockchain ecosystem. Waves was founded by Alexander Ivanov, a physicist and entrepreneur with a background in decentralised technologies. The Neutrino Protocol was co-founded by Aleksei Pupyshev, an advocate of blockchain solutions, alongside contributions from the Waves team and its community developers. The rebranding from USDN to XTN was carried out through a community-driven governance process.
