Introducing sNSBT
In this article I introduce a derivative on top of NSBT (Neutrino System Base Token) — a token built by the Neutrino team to govern USDN stablecoin.
Staked NSBT (sNSBT) is a tradable version of gNSBT with 100% staking rewards.
Basically, this derivative utilises liquid staking approach which is well explained by Lido team:
Liquid staking is an alternative to locking up a user’s stake: it allows for users to stake any amount of Token and to effectively unstake their Token without the requirement of transactions being enabled.
To better understand the idea of sNSBT you need to know how NSBT staking works: as described in NEP-102, to start earning staking rewards, a user needs to lock his NSBT for a long period of time with huge unlock fees. Meanwhile staking rewards are crazy, reaching 150% APY in the first week after activating NEP-102.
The solution proposed in sNSBT is simple:
- user sends NSBT to sNSBT contract,
- user gets sNSBT tokens back, while his NSBT get locked,
- user can hold or trade gotten sNSBT,
- there are regular mass-payment distributions to sNSBT holders in USDN.
By this, the user keeps getting the same rewards as he would get by directly locking NSBT, but he also has an option to sell or use his sNSBT. So one doesn’t need to pay an unlock fee if he wants to redeem funds.
How to start?
To start earning NSBT APY you can just get sNSBT and hold it in your wallet.
There are two ways to get sNSBT:
1- buy at PuzzleSwap
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2- issue using auto smart contract interface
After completing one of these actions, you can check sNSBT appearance in your wallet on PuzzleSwap.org.
After having at least 1 sNSBT in your wallet, you will start receiving regular payouts. But that’s not all you can do with sNSBT!
And here comes the DeFi!
It would be boring to just launch sNSBT token, so we also made the AMM pool of PuzzleSwap: puzzleswap.org/nsbt/invest.
Combining the passive APY of sNSBT and fee mining, this megapool showed 150–300% APY in the first week after launch for liquidity providers.
What’s special about this pool is the minimal risk of impermanent loss, since 95% of pool liquidity is concentrated in NSBT and sNSBT tokens, which are pegged. To start earning with this pool you can provide liquidity with your NSBT using this link: puzzleswap.org/nsbt/addOneToken.
FAQ
Are there any fees for using sNSBT? There are not! You get 100% of rewards, there are no hidden fees.
Can I unstake my NSBT? No, but you can sell sNSBT by market price.
Will 1 sNSBT always be equal to 1 NSBT? No, but if NSBT will show a stable high APY, demand on sNSBT should be high enough for it to have 1:1 peg. Only the market will show the price of sNSBT.
Will there be a governance for sNSBT holders? It’s possible, if sNSBT gets enough traction and Neutrino governance points will be worthy.
Where can I find the source code of sNSBT? In the project GitHub repository: https://github.com/vlzhr/stokens.
