Neutrino Index Token

XTN plays multiple roles within the Waves ecosystem and DeFi platforms:

• Medium of Exchange: XTN facilitates transactions within the Waves ecosystem, functioning as a relatively stable asset for payments and settlements.
• Collateralisation: It serves as collateral for various DeFi applications, including lending, borrowing, and liquidity provision.
• Staking and Yield Generation: Users can stake XTN within the protocol, receiving staking rewards based on collateral dynamics.
• Decentralised Finance (DeFi) Integration: XTN is used in decentralised exchanges (DEXs), lending platforms, and liquidity pools, providing further utility for traders and investors.
• Backing Ratio Mechanism: The price of XTN is influenced by the BR, and when it exceeds 115%, a portion of reserves is converted from SURF to XTN to stabilise the market.
• Governance Participation (NSBT): NSBT holders can vote on protocol decisions, including collateral adjustments and stability mechanisms.

The transition from USDN to XTN initiated in early 2023 due to the challenges USDN faced in maintaining its 1:1 peg to the US dollar. USDN's reliance on WAVES as a single collateral asset made it vulnerable to market fluctuations. To address this issue, the Neutrino team and its community proposed a restructured model based on multiple collateral assets.

XTN was introduced as a non-pegged, algorithmic asset backed by a diversified basket of tokens. The protocol’s goal is to maintain an optimal BR, ensuring sufficient collateralisation while allowing price discovery through market demand. The governance structure of the Neutrino Protocol was maintained, enabling community participation in key decisions regarding collateral adjustments and protocol changes.

The role of SURF as a recapitalisation token remains integral under the new system. When the BR reaches 115%, 10% of reserves are automatically converted from SURF to XTN, helping to stabilise the token’s value.

Rebranding Roadmap:

• January 2023: Development of rebranding functionality.
• End of January: Release of the XTN technical litepaper.
• Mid-February: Full rebranding of USDN to XTN.
• February - April: Governance process to add $15 million worth of ecosystem tokens as collateral.