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Stake Public Chain Coins for Stablecoin Income: USDN, Russia's public chain Waves skyrockets to become the 32nd largest market cap

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Stake Public Chain Coins for Stablecoin Income: USDN, Russia

Among the top 100 market capitalizations, the blockchain project Waves (WAVES) has seen its price surge by over three times in the past 30 days, with the actual increase starting from February 26th, experiencing a significant surge from March 1st, and a more than 60% jump on March 28th. On March 8th, the news included an upgrade to Waves 2.0, collaboration with cross-chain protocols, and a $150 million ecosystem fund, all of which are typical layouts for emerging public chains.

Looking at recent developments, the restructuring of the algorithmic stablecoin protocol Neutrino and the increase in Total Value Locked (TVL) may be more closely related to today's significant price increase. Additionally, Vires Finance is offering higher rewards for the stablecoin USDN, but since most USDN is generated through staking WAVES in Neutrino, this has led to a dramatic increase in assets locked in Neutrino.

Understanding the Relationship Between Neutrino and Waves

In the Waves blockchain ecosystem, the algorithmic stablecoin protocol Neutrino is similar to the relationship between LUNA and UST in the Terra ecosystem: using native tokens of the public chain to generate algorithmic stablecoins, with a protocol that provides stablecoin rewards to incentivize people to stake. However, the minting of stablecoin USDN does not burn WAVES.

Currently, stablecoin USDN is minted by staking WAVES, and users can earn up to 15% stablecoin rewards through Neutrino protocol services. According to DeFi Llama, the total value locked in Neutrino protocol has recently reached $3.09 billion, nearly tripling in a month, which is of course related to the rise of WAVES.

Source: DeFi Llama

Recent Changes in Neutrino

Neutrino has added more functionality to its protocol tokens NSBT and staking certificates gNSBT, and there are also updates in the exchange between WAVES and USDN in the protocol:

  • Previously, there was random delay in the exchange between WAVES and USDN, but now there is only one block delay.
  • Only NSBT stakers who own gNSBT can make exchanges.
  • The amount of gNSBT determines the maximum daily exchange amount.
  • Users can only make one exchange per day.

From here, it can be seen that Neutrino has restricted the ability to redeem WAVES.

The Relationship Between WAVES and Russia

The founder and CEO of Waves is Sasha IvanovAlexander Ivanov, born in Ukraine, with the company operating in Russia and Germany. Interestingly, in a report from 2019, Waves developed blockchain solutions with private and state-owned enterprises in Russia for institutional, industrial, and military purposes. Despite close cooperation with the Russian government, Sasha Ivanov continuously emphasizes his Ukrainian roots on Twitter. Although the benefits Waves brings to both countries cannot be confirmed, the cryptocurrency market has shown interest in it.

In addition, decentralized foreign exchange DeFo is also one of Neutrino's visions. Its primary goal of synthetic assets coincidentally includes EURN Neutrino Euro and CNYN Neutrino Renminbi. Recently, the Chairman of the Russian Energy Commission stated that under economic sanctions, there could be alternative payment options in energy trade: "For a long time, we have been proposing to friendly countries like China to switch to rubles, renminbi as international settlement currencies. For Turkey, it could be lira, ruble, the currency pairs can vary, this is a normal practice."