Stability improvements for Neutrino System

Parameters (can be voted by NSBT holders):

target_br: this is the backing ratio we want to achieve
stability_fee_percentage: percent taken from staking fees which goes into neutrino reserve

if br < target_br:
put stability_fee_percentage from staking rewards into into neutrino reserve

Higher rewards in the long run and more stability for Neutrino. NSBT holders can decide how much stability they want.


how much is the current “stability_fee_percentage” ?

At the moment we don’t have stability_fee_percentage.

It’s just an idea which needs to be implemented.

I didn’t do the math, but i think a stability_fee_percentage of 1 percent or less and target_br of 3 could be a good start.

Got it! I was confused because we have target_br and it’s 1.5 = 50% If BR 3 = 200%

What is the relationship between target_br and the stability fee?
is there any relationship or interaction?

You are right, target_br is a bit misleading …

I was thinking about what happens if all NSBT are minted. I think we need a feature to keep the backing ratio high enough for possible future crashes.

If we vote for a stability_fee_percentage of 1 we “only” get 9.47 % instead of 10.47% for USDN staking and 1 % goes into the neutrino reserve. (today’s USDN interest values for example).

If the BR is lower than 1 the problem solve itself as long people are staking their USDN.

1% of 100M USDN staking is barely 1M per year.

That won’t move BR up.

Sorry if I misunderstood your idea

How about no target br,? so always have a stability fee.

I think we should rather have other ways to keep br up then taking from usdn profits