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Proposal: Add support for Neutrino USDN (USDN)

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governance.aave.com

TL;DR:

Sasha Ivanov, founder of Waves and co-creator of Neutrino, proposed adding Neutrino USD (USDN) as a collateral asset on Aave, highlighting its significant total value locked (TVL), daily trade volume, and potential for arbitrage opportunities. Despite some risks, Ivanov emphasized USDN's stability, profitability, and potential to attract more users, backed by the Neutrino system and Neutrino Token (NSBT), and its non-upgradable contract that allows minting by exchanging Waves for USDN.

The discussion primarily revolved around the proposal by Sasha Ivanov, founder of the Waves protocol and co-creator of the Neutrino protocol, to add support for Neutrino USD (USDN) on Aave as a collateral asset. USDN, an algorithmic multi-chain stablecoin pegged to the US dollar and backed by WAVES, has a significant total value locked (TVL) and a substantial daily trade volume. The addition of USDN to Aave could potentially create arbitrage opportunities and benefit the Aave TVL.

USDN's main feature is staking and generating rewards from the locked underlying asset (WAVES), making it a potentially profitable asset for borrowing or collateral in DeFi strategies. The USDN contract is not upgradable, and minting is only possible by exchanging $1 worth of Waves for 1 USDN on the smart contract. Despite some risks associated with the USDN smart contract and counterparty risk, Ivanov believes that the benefits of adding USDN to Aave outweigh these concerns.

Sasha35625 further elaborated on the stability and governance of USDN, ensured by the Neutrino system and the Neutrino Token (NSBT). In case of significant market instability, the system's emergency oracles can trigger a shutdown of the smart contract operation. Throughout its existence, USDN has shown steady growth, with an increase in collateralized USDN and the amount of WAVES locked in the smart contract. The discussion concluded with a positive outlook on the potential addition of USDN to Aave, considering its stability, profitability, and potential for attracting more users from the Neutrino and Waves communities.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 05/12 01:14