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Staking for Waves’ Neutrino Dollars Comes to the Ethereum Network

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The Neutrino protocol, a price-stable multi-asset protocol running on major blockchain platform Waves, is introducing the Neutrino dollar (USDN) on Ethereum.

The Neutrino dollar, an algorithmic stablecoin collateralized by the Waves (WAVES) native token, is now available for all Ethereum users as the token has been ported to the Ethereum blockchain, Waves announced on Aug. 18.

With the porting, Neutrino USD becomes accessible on Ethereum, enabling Ethereum users to stake rewards by just holding USDN in their Ethereum wallets, Waves CEO and founder Alexander Ivanov told Cointelegraph. The new integration also allows Ethereum developers to use USDN in their decentralized finance applications.

Pegged to the United States dollar on the 1:1 ratio, Neutrino USD is used as a payment token in various decentralized apps, and can also be traded on different markets. The token yields 8% to 15% annually when staked, Waves representatives say.

As opposed to centralized fiat-collateralized stablecoins, where holders have to trust the issuer, USDN is an algorithmic stablecoin that is issued by a smart contract. Its stability is said to be maintained by algorithms as well as various stakeholders from the community.

Ivanov told Cointelegraph that the process of porting USDN to Ethereum basically involves blocking original USDN tokens on Waves and issuing the same amount on the Ethereum network. 

The porting process consists of two phases, the first centralized and the other, decentralized.

After Waves.Exchange issues USDN tokens on Ethereum, the original USDN on Waves are automatically sent to staking through the same Waves.Exchange gateway. The staking rewards are received by Ethereum users proportionally to their stake in USDN.

The second phase involves Waves’ interoperability solution known as the Gravity network. Expected to launch by October 2020. When Gravity network launches, Waves would be able to carry out the same integrations with other blockchains like Cosmos (ATOM), Solana, Ethereum Classic (ETC) and others.

Waves is also planning to expand its tokenized assets ecosystem with a focus on the so-called synthetic national currencies and set up a decentralized foreign exchange, or DeFo, to enable virtually instantaneous swaps. 

Ivanov told Cointelegraph that some players in the Waves ecosystem are already developing fiat-pegged assets.

The latest developments in the Neutrino network come in anticipation of Ethereum 2.0, a major upgrade to the network that is set to enable Ethereum users to finally earn staking rewards from holding their Ether (ETH).



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Ethereum

Ethereum investment products see largest weekly outflows on record — CoinShares

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Institutional investment managers continued to sell cryptocurrencies like Bitcoin (BTC) and Ether (ETH) last week, though the magnitude of the outflows have declined substantially from previous weeks, offering early signs that the worst of the market sell-off has subsided. 

CoinShares’ weekly fund flows report showed a $21.4 million drawdown over the previous seven days, compared with a $94 million outflow the previous week. Ether products registered their biggest weekly drawdown at $12.7 million. Funds dedicated to ETH had been outperforming Bitcoin in recent months, reflecting pent-up demand for the second-largest cryptocurrency.

All said, institutional investors have been net sellers of digital assets in four of the past five weeks. The period ending May 24 saw the biggest weekly outflow at $97 million, according to CoinShares data.

Related: Record $141M outflow from Bitcoin products signals institutions are bearish on BTC: CoinShares

“While sentiment has weakened over the last month investors on the whole remain committed given the magnitude of inflows seen this year,” the report says, alluding to the fact that crypto investment funds have raised $5.8 billion this year alone. That’s within 13% of the $6.7 billion inflows registered in all of 2020.

As Cointelegraph reported, crypto holdings among institutional managers reached record levels during the height of the bull market earlier this year. Naturally, many investors have been taking profits following the most recent bout of market volatility.

Nevertheless, the weekly fund flows report suggests market sentiment is gradually improving. Case in point: The Bitcoin Fear & Greed Index has rebounded from extreme lows despite remaining on the bearish side. Meanwhile, Bitcoin’s price pierced above $41,000 on Monday, marking a 12% gain as markets eyed recovery above key technical levels. The price of Ether also recovered 9% to hit $2,566.