What is the reserve when the waves rate goes up?

Question

Neutrino Protocol - Official group

dandandan zz

What is the reserve when the waves rate goes up?

Is it to generate USDN?

#cryptocurrency #english #neutrino

0

03.04.2022

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dandandan zz Автор вопроса

That is to say, the reserve is NSBT? If the BR is greater than 1.5, no one will buy the issued NSBT in the contract, because the transaction price in the market will be more advantageous, which is the case at present.

0

03.04.2022

julia

dandandan zz
That is to say, the reserve is NSBT? If the BR is ...

Yes, right.

0

03.04.2022

julia · Accepted Answer

Hi, it does not generate new USDN. When the Backing Ratio declines or deficit (BR<1) occurs and the current reserve fund is not sufficient to compensate for a decline in collateral value, NSBT serves as a bond. Traders buy NSBT for WAVES via smart contract, expecting returns in the future, once BR has been recovered. When BR reaches 1.5 or 150% surplus, the issue price of NSBT increases sharply and as a maximum possible token supply is limited to 2.8 million tokens, the issue price grows exponentially, which ensures reserves with additional collateral securing the whole system against deficit.

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What is the reserve when the waves rate goes up?

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