What is Neutrino Token (NSBT) | What is Neutrino Token | What is NSBT token
About NSBT
Neutrino Token or NSBT (stands for Neutrino System Base Token) is a recapitalization and governance token for the Neutrino system. As a recapitalization token, NSBT ensures the stability of collateral reserves on Neutrino’s smart contract. New NSBTs are issued for locking WAVES on a contract, serving as additional backing and insuring the system against deficit. As a governance token, NSBT enables voting for issuing new Neutrino assets and updating protocol features and parameters. NSBT is also a stakable asset enabling holders to earn on WAVES to USDN swap fees.
Neutrino: algorithmic price-stable cryptocurrency protocol collateralized by Waves
Popular digital assets such as Bitcoin (BTC), Ether (ETH) or WAVES are too volatile to be used as everyday currency or instrument of saving funds. This is also a big barrier for dApp (decentralized applications) developers and retail merchants which is preventing cryptocurrencies from mass adoption.
There are a bunch of fiat-based stable coins such as USDT, TUSD, Gemini or WUSD*. The main problem is that users should trust to centralized entities who are responsible for keeping enough reserves for issued stable-coins on the market.
Neutrino stable coin set-up combines algorithmic approach with a cryptocurrency backing. Since the exchange rate is provided through external oracles and the actual exchange stable-coin — crypto is executed to this rate, the issue that we need to solve is not the stable coin price stability per se, but the price stability of the underlying asset.
A smart contract dispenses stable coins in exchange for the underlying crypto and enables the redemption of stable coins back into crypto. However, it might happen that the redemption of the stable coin becomes impossible, due to the crypto volatility and the diminishing value of the underlying asset.
To counter this, we propose adding a new instrument called Neutrino system base token (NSBT), which ensures that in case of diminishing reserves in underlying assets at the smart contract there is an incentive to replenish them through the purchase of NSBT.
The issue and redemption of NSBT is administered through the smart contract. Depending on which asset we are using as a reference we might have different variations of stable coins collateralized by WAVES native token: USD Neutrino, EUR-Neutrino, BTC-Neutrino or even S&P 500-Neutrino. Neutrino is designed to become one of the three deflationary mechanisms in Waves 2.0 together with side-chains and miners bounty.
Now NSBT, the Neutrino protocol’s recapitalization and governance token, has acquired a new function, staking, which allows users to receive rewards in USDN and WAVES for storing NSBT tokens at the Neutrino smart contract address. This innovation will increase the stability of the collateral reserves on the smart contract by further stimulating NSBT issuance and holding.
How it works
Since last week, all USDN token issuance operations (WAVES to USDN swaps and vice versa) are subject to a protocol fee. Accumulated fees will be distributed among the NSBT token holders who have staked their tokens. Fees are collected in USDN for WAVES to USDN swaps and in WAVES for USDN to WAVES swaps. Rewards are paid out daily to NSBT stakers’ Waves wallets.
How to stake NSBT
First, you need to purchase NSBT tokens. NSBT can be obtained in two ways: by issuing through a smart contract or by purchasing on the open market. Issuance through a smart contract implies a swap of WAVES to NSBT, which can be done in this interface. A purchase from a contract is not subject to extra fees, except for a transaction fee of 0.005 WAVES, regardless of the volume. However, the issuance price will be strictly determined by the NSBT curve depending on the current BR (backing ratio). This price may differ from the ask price on exchanges. You can read more about NSBT pricing here. The second way is to buy NSBT on an exchange. NSBT is traded in various pairs on Waves.Exchange and Swop.fi. ERC-20 NSBTs can be purchased on Uniswap and will have to be subsequently sent to the Waves network.
**NSBT staking is available through the **Waves.Exchange interface. To stake NSBT, you need to send tokens to a smart contract. To do this, enter the amount and click on the ‘Stake NSBT’ button. You can withdraw tokens from the contract with the ‘Unstake NSBT’ button.
Staking rewards distribution
The profitability of NSBT staking depends on the volume of WAVES-USDN swaps and a user’s staking balance’s share in the total amount of staked NSBTs. The Calculating Period is 1,440 blocks, which corresponds to approximately 24 hours. Upon the expiration of 1,440 blocks, swap fees begin to be distributed among NSBT stakers. The distribution system uses the IPB (income per block) parameter. To calculate it, Total Period Income (total income for the Calculating Period) is divided by 1,440 blocks:
IPB = Total Period Income / Calculating Period.
To calculate the **IPB share **(the share of income per one block), the distribution system determines the staking balance of each user in each block and divides this value by the sum of all staking balances:
IPB share = User Stake Balance in Block / Total Staked in Block
Consider this example:
Let’s assume the total income for the Calculating Period was 1,440 USDN. Then the income per block (IPB) will be 1 USDN. Imagine no one staked tokens between blocks 5,000 and 5,030. In this case, the income for these 30 blocks will be distributed among stakers in block 5,031. At the height of block 5,031, only Alice came in, which means she will get all rewards for the previous 30 blocks.
- Alice’s income = 30 * IPB = 30 (USDN)
From block 5,031 to block 5,700, only Alice staked coins. This means she has a 100% IPB share over 270 blocks.
- Alice’s income = 270 * IPB = 270 (USDN)
Between blocks 5,700 and 6,000, there were already two stakers: Alice and Bob. Alice staked 1 token, and Bob staked 3 tokens. Alice’s share of income per block = 1 / (1 + 3) = 0.25 or 25%, and Bob’s share = 3 / (1 + 3) = 0.75 or 75%. This means the rewards for these 300 blocks will be distributed proportionally between Alice and Bob.
- Alice’s income = 300 * IPB * 0.25 = 75 (USDN)
- Bob’s income = 300 * IPB * 0.75 = 225 (USDN)
There were already 3 stakers between blocks 6,000 and 6,440 as Carl joined.
- Alice’s income = 440 * IPB * Alice IPB share = 440 * IPB * (1 / (1 + 3 + 150k) = 440 * IPB * 0.0000067 = 0.002948 (USDN)
- Bob’s income = 440 * IPB * Bob IPB share = 440 * IPB * (1 / (1 + 3 + 150k) = 440 * IPB * 0.00002 = 0.0088 (USDN)
- Carl’s income = 440 * IPB * Cai IPB share = 440 * IPB * (150k / (1 + 3 + 150k) = 440 * IPB * 0.9999733 = 439.988252 (USDN)
In total, per day (1,440 blocks):
- Alice’s income = ~ 375 USDN
- Bob’s income = ~ 225 USDN
- Carl’s income = ~ 440 USDN
Thus, under certain circumstances, even by staking only 1 token, you can collect an income comparable to an income from staking 150,000 tokens. This example clearly demonstrates that, among other things, the system generously rewards those who stake tokens earlier than others.
Claim your NSBT tokens!
The Waves ecosystem’s supporters who have Binance and Huobi accounts can now claim Neutrino Tokens (NSBTs) as a part of Waves’ incentive program for WAVES holders.
A total of 10,000 NSBTs (5,000 ERC-20 NSBT tokens for Huobi users and 5,000 NSBT native Waves tokens for Binance users) will be allocated for the incentive program and available to be claimed by Binance and Huobi users.
Who can claim NSBT tokens?
All Binance and Huobi users who have a balance of at least 10 WAVES (tokens), except tokens in trade orders, and meet eligibility terms.
What is the distribution formula for each exchange?
The amount of NSBTs to be claimed by user A is calculated as follows:
NSBTs claimed by user A = (amount of WAVES held by user A at the snapshot time / total amount of WAVES held by the exchange at the snapshot time) * total NSBT airdrop amount (5,000 NSBT).
What are the conditions for claiming NSBT?
The WAVES balance on a user’s Binance or Huobi account should be at least 10 WAVES at the snapshot time. NSBT snapshot date: February 10, 2021 (Wednesday) at UTC 00:00:00 (the snapshot will be taken in the first block created after February 10, UTC 00:00:00).
*The exact distribution date may vary across exchanges.
Please, note that NSBT is not yet tradable on Binance and Huobi.
Binance Will Support the Neutrino Token (NSBT) Airdrop Program for Waves (WAVES) Holders
Binance will support the Neutrino Token (NSBT) Airdrop Program for Waves (WAVES) holders. The snapshot for the airdrop will take place at 2021-02-10 0:00 AM (UTC).
- WAVES deposits and withdrawals will be suspended starting from 2021-02-09 10:00 PM (UTC). Please note that trading of WAVES will not be affected during the airdrop.
- Deposits and withdrawals will be reopened after the snapshot is completed.
- Binance will distribute NSBT tokens to each user based on the formula as follows :NSBTs claimed by user A = (Amount of WAVES held by user A at the snapshot time / Total amount of WAVES held by the exchange at the snapshot time) * Total NSBT airdrop amount (5,000 NSBT)
Please note:
- WAVES tokens that were pending deposit or withdrawal at the time of the snapshots will not count towards your WAVES balance.
- WAVES balances under 10 WAVES (including those in trade orders) will not be eligible for the airdrop.
- The snapshots will include WAVES balances in Spot wallets, Margin, Savings and Staking accounts, but excludes USDT-Margined Futures wallet. Undistributed WAVES interest payments will not be included.
- WAVES borrowed from Margin accounts or Crypto Loans, or WAVES transferred to Spot wallets from these accounts, will not be eligible for the airdrop.
- For the trading and listing of NSBT on Binance, NSBT will go through the same strict listing review process as Binance does for any other coin/token. Supporting this airdrop does not guarantee the listing of NSBT. Binance does not guarantee any listings as per its internal policy.
- Binance will distribute the NSBT tokens after the project has completed the NSBT token distribution to exchanges. We will post a further announcement once the distribution to Binance users is completed.
- US persons, entities and sanctioned countries are not eligible to receive this airdrop. For more information, please refer to Binance Terms of Use.
How and Where to Buy Neutrino Token (NSBT) ?
NSBT has been listed on a number of crypto exchanges, unlike other main cryptocurrencies, it cannot be directly purchased with fiats money. However, You can still easily buy this coin by first buying Bitcoin, ETH, USDT from any large exchanges and then transfer to the exchange that offers to trade this coin, in this guide article we will walk you through in detail the steps to buy NSBT
You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT)…
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services. Binance exploded onto the scene in the mania of 2017 and has since gone on to become the top crypto exchange in the world.
Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT)
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
Next step - Transfer your cryptos to an Altcoin Exchange
Since NSBT is an altcoin we need to transfer our coins to an exchange that NSBT can be traded. Below is a list of exchanges that offers to trade NSBT in various market pairs, head to their websites and register for an account.
Once finished you will then need to make a BTC/ETH/USDT deposit to the exchange from Binance depending on the available market pairs. After the deposit is confirmed you may then purchase NSBT from the exchange.
Exchange: Gate.io, Sushiswap, Tidex, Waves Exchange, and Mooniswap
Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once NSBT gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!
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