Cryptocurrency News

Neutral Announced the launch of a Stablecoin: Stablecoin Backed by Stablecoins

NUSD, which is also known as Neutral Dollar to be launched by an open financial protocol, Neutral. With a completely fresh and out of the box concept, Neutral is all set and up to bring in NUSD in the market. Despite the fact that there are many Stablecoins available in the market for a long time, Neutral hopes to enter the market with a hit of its concept of a basket of existing Stablecoins. (NUSD) Neutral Dollar will have a collateral existence of USD Coin (USDC), Dai (DAI), Paxos Standard Token (PAX), and TrueUSD (TUSD).

Neutral took a press release to announce the details related to NUSD, which mentioned that once that basket is available on exchanges, it will evolve further to include more Stablecoins in it to make the basket more stable. However, the press release did not mention anything about the time when it will be available in the market for exchanges.

The unique concept of Neutral Dollar is to bring together as many Stablecoins as possible in the market leading to a rebalanced composition of the basket which will enable on-chain swaps between coins. This will make the basket more stable compared to the market fluctuations and further solve the issues related to fragmented liquidity in the Stablecoin market. The company also says that it will allow full transparency of the assets with real-time audits.

The press release further included that the unique concept of the basket of Stablecoins will boost the liquidity for the coins in the basket. Along with that, the rigorous testing done by the mechanism shows comparatively low volatility than other existing Stablecoins in the market. It also minimizes investor risk.

Matthew Branton, architect of the Neutral Dollar and CTO of Neutral said, “Contrary to their name, most Stablecoins experience significant volatility. Neutral Dollar provides end users with increased stability and, for service providers, acts as a frictionless liquidity channel between different Stablecoins. We want to extend the reach of Stablecoins as far and wide as possible, presenting a financial instrument that is accessible, reliable, and truly representative of the Stablecoin market.’’

According to the information available on the official website of Neutral, tracking the stock index, bonds, basket of assets or a commodity, the NUSD works just like a traditional exchange-traded fund.

In a blog post by the team, the goal of creating a metastable basket is mentioned as to enable the users to lessen the limitations they have with any single Stablecoin.

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