NIP: NSBT ERC20 Auto-Staking Design

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

Short intro

Neutrino Token (NSBTNeutrino System Base Token) has a crucial role in the whole Neutrino protocol system:

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

Staking

Despite the fact that $nsbt has profitable staking generated from $usdn<->$waves issue & redeem operations fees, it works properly only on waves blockchain now. You can stake it directly on WX or as LP (liquidity provider) on swop.fi.

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

To bring more liquidity, users and usecases Neutrino token has ERC20 version maintained by WX gateways infrastructure. This token is already tradable on several ethereum DEXes like 1inch (mooniswap) or uniswap.

Current implementation of ERC20 NSBT has several problems and limitations:

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

The reason of current Neutrino Improvement Proposal (NIP) is to create new version of ERC20 NSBT with auto-staking functionality. The proposed process of rewards management is illustrating below (Fig 2.):

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):

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

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 Ξntrepreneur, Lobster

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