Abstract
Currently, the XTN market price is greater than the XTN smart contract price, leading to reduced/stopped usage of XTN smart contract operations. Most XTN operations are done using different AMM pools or DEXs. It means that an essential part of XTN treasury liquidity doesn’t work or generate income for the XTN holders or Neutrino DAO. This proposal is trying to resolve this situation and is focused on bringing extra profits to Neutrino DAO participants, XTN holders, and XTN value.
Idea
Neutrino protocol can closely cooperate/merge with the Waves Index (WIND) product from the Puzzle Team. The main idea is to use XTN treasury funds as liquidity for WIND while XTN treasury will receive WIND LP tokens and will support the same set of operations but operate through WIND LP tokens and remaining treasury funds.
Together with the Puzzle team WIND composition has been already rebuilt and it consists of the following set of tokens:
4 extra tokens have been added:
- WAVES
- XTN
- NSBT
- VIRES
Such setup requires to buy WIND underlying tokens from the market except those which are in Neutrino treasury. To reduce extra market pressure for WX and VIRES it is better to use only WAVES to receive the required amounts of WIND composition and invest in the WIND pool step by step to avoid rapid growth of underlying tokens.
Profits
Added liquidity will start working at the market and earning WIND pool’s trading fees.
Moreover, adding XTN into the composition will create one more source to be used for the XTN buyback process that has been organized by miners. As a result, it will increase the amount of accumulated WIND’s trading fees which in turn will lead to extra profit for liquidity providers, in our case the Neutrino protocol.
All earned fees, corresponding to Neutrino shares will be reinvested, and received LP tokens will be sent directly to Neutrino DAO treasury. Regularly Neutrino DAO will decide what to do with received LP tokens. They can be moved to the main Neutrino contract to increase XTN value or used as dividends for DAO participants or other DAO investments.
The presence of NSBT in the WIND pool and DAO income will also allow Neutrino DAO to manage NSBT value, which is one of the DAO goals because there are about 162k NSBT in the treasury.
Conclusion
If the proposal is accepted by Neutrino DAO it will create a strong cooperation with WIND and can bring extra and new benefits for different parties such as XTN, Neutrino protocol, Neutrino DAO, Puzzle, and Waves ecosystem in general.