How to stake USDN (Waves Neutrino)

USDN is a stable coin that is pegged to the US Dollar. It is issued by Waves Neutrino protocol. The price of a 1 USDN is fixed at 1 dollar. So, you can stake USDN like making a time deposit in US dollars or other fiat currencies. This article explains features of USDN staking and how to stake it.

If you don’t have a Waves.Exchange account yet, or don’t have waves, btc, eth, etc.. in your account, you need to create your account and deposit them in advance.

Now let’s see how to get the USDN by trading assets you’ve deposited. Click “Trading” button in the menu at the top of the Waves.Exchange. Then follow the steps in the screenshot below to select the asset pair that you want to exchange for USDN. If you have deposited BTC and want to exchange it for USDN, select BTC/USDN. If you have deposited ETH and want to exchange it for USDN, select ETH/USDN. In this section, we assume that you have WAVES and you want to exchange it for USDN. In this case, you should select WAVES/USDN pair.

Features of USDN staking

USDN and its staking have following features

USDN is an Algorithmic Stable Coin

The USDT (tether), which is famous as a Stable Coin, is issued against physical US Dollars. You need to trust that the issuing company, Tether has the physical USDT corresponding to the issued USDT. If Tether goes bankrupt, or if they lie and issue USDT inappropriately, the value of USDT you have will be lost.

The USDN, on the other hand, is an algorithmic stable coin that is issued according to the Neutrino protocol. It is collateralized by waves and fully controlled by the smart contract. The number of issues, WAVES locked for USDN issuance, etc. are all recorded on Waves blockchain. So there is transparency and no room for fraud. USDN is characterized by a high degree of transparency and a low risk of losing assets due to fraud by the Stable Coin issuer.

High Interest Rates

By staking USDN, you can earn interest in USDN, depending on the amount you used for staking. This interest portion comes from staking of waves locked for issuing USDN. The interest you can earn by staking will depend on the price of Waves and the amount of USDN used for staking out of the total issued USDN, etc. In other words, the interest rate fluctuates every day. You can find the interest rate always in the staking dashboard we discuss in following sections. The lowest annual rate of USDN staking is closer to the annual rate of Waves staking. This means that even at its lowest point, the annual rate remains at about 7%. Even this minimum interest rate is much higher than the interest rate of bank deposits. Then, as The usage of USDN grows in various fields, the annual rate will continue to rise.

You can receive interest every day

If you have made a time deposit at a bank, the term is probably several months or a few years. You will receive interest with the agreed rate of interest at the end of the term. However, if it is cancelled in the middle of the term, the interest income is reduced usually due to the application of a lower interest rate as a penalty. In other words, in the case of a bank time deposit, if you cancel it in the middle, the period you had deposited seems to be wasted.

Regarding USDN Staking, you can receive the interest every day. So no matter when you cancel, you don’t waste the interest up to that point.

The screenshot below shows an example of the transaction history of daily interest earning. You can find it in the staking dashboard. The interest will be sent to you automatically every day.

neutrino-everyday-payout

No price dump during staking

There are many Crypto that has staking feature, but usually you need to lock the target asset during the staking. If the price of the asset drops during staking, the loss could be greater than the interest you earn from the staking. You need to be aware of this point because Crypto assets are highly volatile in price.

As explained above, the USDN is a stable coin that is pegged to US dollar, so it is always worth 1 dollar. Therefore, you don’t have to worry about the price dropping during staking. The interest earned leads directly to profit. You can do staking as if you were making a time deposit at a bank.

Control is always in your side

Unlike lending services such as BlockFi, USDN staking does not require you to send your USDN to an exchange, and USDN will always remain under your control. Therefore, you don’t have to worry about losing your assets due to hacking at exchanges(service providers, deposit destinations). It’s good to earn high interest on lending, but it’s a dead end if you lose the principal you’ve deposited. So, this point is very important.

How to get USDN

In order to perform USDN staking, you must have USDN in your account. There are two ways to get USDN.

  1. Issuing USDN by smart contract
  2. Get USDN by trading on Waves.Exchange

We try method 2 in this article. It is assumed that your waves account (address) has waves, BTC, ETH, etc. for exchanging to USDN. You will also need 0.005 waves to issue a transaction to start staking. You can deposit non-waves assets, such as BTC, ETH, etc., and exchange them for waves in trade.

If you don’t have an account in Waves.Exchange yet, or haven’t deposited your funds, please create an account and send some assets to your account in advance.

Now let’s see how to get the USDN by trading assets you’ve deposited. Click “Trading” button in the menu at the top of the Waves.Exchange. Then follow the steps in the screenshot below to select the asset pair that you want to exchange for USDN. If you have deposited BTC and want to exchange it for USDN, select BTC/USDN. If you have deposited ETH and want to exchange it for USDN, select ETH/USDN. In this section, we assume that you have WAVES and you want to exchange it for USDN. In this case, you should select WAVES/USDN pair.

When you click on the WAVES/USDN pair, you see the following screen. On the right side of the screen, you scan find the Order Book and the Order Issuance screen, where you can sell WAVES (or BTC, ETH, etc.) to get USDN. If you only hold currencies other than WAVES, click on the “Sell XXXX” button at the bottom right of the screen to select the asset you want to use as a fee for your trades.

0.005waves is required to issue the transaction of starting staking. If you hold only currencies other than waves, such as BTC, ETH, etc., you should similarly exchange a portion of your assets for waves.

USDN Staking

Once you have USDN, the next step is staking. Click “Staking” from the menu at the top of Waves.Exchage to go to the staking dashboard. You can find information about relevant USDN staking in this dashboard. As you can see in the screenshot below, you can find the amoount of USDN you have, USDN you have used for staking, and the annual rate of staking.

If you click “Deposit” button in the above screen, the following screen will pop up in which you can perform the Deposit operation. In this screen, set how much of the USDN you use for staking and click the “Deposit” button to start staking.

  • Available Balance : Shows USDN that are available for staking. USDN that are already being used for staking and trade orders are being subtracted from the amount.
  • Deposit to Smart Contract : Enter here the amount of USDN you want to use for the staking

Once the input is complete and the “Deposit” button is clicked, staking start transaction will be issued. The fee of 0.005 WAVES will be required at this time.

Where, we assume that 100 USDN is used for staking.

After starting staking, you go back to the staking dashboard. You can find the amount of USDN you used for staking is displayed in “Staked Balance” field.

The staking of the USDN is now completed. You will receive interest in USDN everyday from next day. USDN you received as interest can be added to the staking in the same way.