NIP: NSBT ERC20 Auto-Staking Design

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ERC20 NSBT isn’t best DeFi coin now… let’s make it better!

Short intro

  • Recapitalization — increasing BR (backing ratio) of $usdn during collateral token price drops ($waves) by issuance new $nsbt tokens via smart contract;
  • Governance — suggesting proposals and voting for new features and protocol’s parameters;
  • Collateral (planned) — using $nsbt as a collateral token for #sDeFo (volatile DeFo assets: $btcn, $xaun, $tslan);
  • Staking — staking rewards from $usdn<->$waves issue & redeem operations fees;

Neutrino token ($nsbt) has growing liquidity on decentralized exchanges at the moment: swop.fi, waves.exchange, 1inch (mooniswap), uniswap and more to come.

Staking

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Fig 1: $nsbt staking on the waves blockchain

Rewards for $nsbt staking are coming from swap operations accordingly in $nsbt or in $waves tokens everyday directly to waves accounts of stakers according to their share from all pool staked $nsbt.

This system works well for all waves account owners.

Problems

Current implementation of ERC20 NSBT has several problems and limitations:

  • Total Supply is 1 trillions tokens and tokens can’t be burned;
  • No staking options for ERC20 NSBT holders;
  • Staking of one asset ($nsbt) is generating rewards in another assets ($waves, $usdn);

Those issues are limiting adoption of $nsbt in DeFi space and also make it harder for CEXes and crypto-wallets provide listings and staking functionalities.

Proposal

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Fig 2: ERC20 NSBT Auto-Staking

NSBT ERC20 gateway is able to stake locked $nsbt and get rewards in $waves and $usdn tokens everyday. Those rewards can be unified into $usdn tokens via neutrino smart contract. After that, whole rewarded $usdn can be splitted into 1440 pieces (or less) and for each blockchain block some portion of $nsbt will be bought from DEXes (WX & swOp.fi) by optimal current price. This process of “splitted buyback” is important since it’s not influencing price sharply, but it’s doing buyback it smoothly during all day (1440 blocks ~ 24 hours).

New system component called aggregator to the end of “day 1" has all rewards converted into $nsbt. In the “day 2” all rewards can be sent to ERC20 NSBT holders.

To optimize gas expenses and make UX better ERC20 USDN token already has successfully tested and popular Auto-Staking functionality (same functionality will be activated for ERC20 WAVES soon):

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Pic 1: Auto-Staking interface

My suggestion is: to use the same logic for ERC20 NSBT as it works for ERC20 USDN and WAVES tokens where rewards for staking is nominating in the same token.

Benefits

  • ERC20 NSBT Auto-Staking is much easier for integration into most popular crypto-wallets with staking options;
  • ERC20 NSBT Auto-Staking is much easier for integration into most popular crypto-exchanges for trading & staking;
  • Buy and Hold ERC20 NSBT can be used as a strategy in many DeFi pools;

This functionality can be implemented “as is/proposed” or by introducing of different additional optimizations like “weekly-window” rewards averaging or another options. I’m personally not sure about: should we, as a community, organize voting for that, but if we’ll see new voting event with suggested parameters and options, let’s do our best and actively participate into governance discussions and promotion of Auto-Staking ERC20 NSBT.

Tech Entrepreneur, Engineer, Team Leader, Co-Author of @ProtocolGravity & @neutrino_proto

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