blockchainreporter
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise
No Result
View All Result
Bet Now
blockchainreporter
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise
No Result
View All Result
blockchainreporter
Bet Now
No Result
View All Result
Bitcoin
BTC
1d:
7d:
Ethereum
ETH
1d:
7d:
Polkadot
DOT
1d:
7d:
Solana
SOL
1d:
7d:
Ripple
XRP
1d:
7d:
Shiba INU
SHIB
1d:
7d:

Crypto Interview: Matthew Branton of Neutral

Tokoni Uti by Tokoni Uti
May 4, 2019 - 1:00 am
in Interview, adoption news
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

As controversial as they are innovative, stablecoins have taken the crypto world by storm. While most stablecoins are tied to a single fiat currency, Neutral, an open financial protocol, has announced the launch of its first product, a next-generation stablecoin called Neutral Dollar (NUSD). The Neutral Dollar is a basket of stablecoins currently collateralized by DAI, TUSD, PAX, and USDC.

We speak with Matthew Branton, Chief Technology Officer of Neutral:

The Neutral Dollar isn’t like anything the market has ever seen before. How did you come up with it?

Neutral Dollar was inspired by traditional financial instruments such as index products that you would commonly see in conventional markets, as grouping assets together diversifies exposure and risk. Index products also aid market maturation, by allowing investors greater accessibility to more easily obtain exposures to a broader range of assets. Neutral is inspired to create blockchain-native aggregate financial instruments to facilitate the growth of cryptocurrencies and improve market dynamics for the better.

Our empirical testing has illustrated that by aggregating several stablecoins together into a basket, we can reduce the overall risk exposure to one individual coin’s volatility and can produce a more stable token that fluctuates more closely to the intended value.

The four stablecoins that are being collateralized are DAI, TUSD, PAX, and USDC. What was the criteria for choosing them?

The composition of Neutral Dollar’s aggregated basket was done through robust testing that illustrated that the combination of these particular stablecoins reduced overall risk exposure to one individual coin’s volatility and can produce a superior token that is the most stable.  We examine both price behaviour and liquidity factors to assess viable constituents, however, this may change in the future as the basket evolves over time to include other stablecoins, further diversifying risk and increasing the overall stability of NUSD.

How will Neutral Dollar be valued considering the changing price of the various stablecoins?

Neutral Dollar will have a value associated with underlying collateralized stablecoins. Therefore, the Neutral Dollar’s value should fluctuate accordingly by the changing prices of the underlying assets.

Stablecoins, in themselves, seem to be highly favoured by the mainstream financial world (JP Morgan launching a stablecoin, for instance). Does this signify that full trust in ‘pure’ cryptos hasn’t been achieved?

There will be various use cases for different stablecoins, with different levels of ‘purity’ in the crypto sense. Enterprise-focused or central bank digital currencies may focus on certain use cases, with the intent to employ and engage with different levels of trustlessness for the end user.

What benefits would an investor enjoy by investing in a product like Neutral Dollar versus traditional stablecoins?

Neutral Dollar is a more stable stablecoin because of how it diversified risk. Neutral Dollar is able to maintain its stability, while harnessing the volatile nature of the cryptocurrency industry, through the unique way in which it solves the issue of fragmented liquidity and offering full transparency of its assets with real-time audits.  Because of this, NUSD will serve as a superior hedging, trading, and investing instrument.

It’s been said that Neutral is planning to develop a suite of financial products besides Neutral Dollar. Could you give us some idea of what else is being developed?

Neutral is an open financial protocol, a mechanism that has been developed to create aggregate products. Meaning, we can basket or group any asset. Our primary focus at this time is the Neutral Dollar, but will look into different products in the coming future.

You’ve stated that your aim is to increase stability in the crypto market. Some would argue that its wild volatility is part of its appeal. Do you agree or will the so-called appeal fade off as the market becomes more mature?

The appeal of stablecoins is the increased stability, and lower volatility they promise. While some may understand the appeal of crypto to be its wild volatility, engaging in non-stablecoins can be detrimental to investors because of currency risk. Hence the creation and desire to engage with more risk-averse assets such as stablecoins like Tether, TUSD, DAI, and in the future, NUSD. As the market matures, we will discover more tools that will make actual investing or trading practices more readily available and accessible. This accessibility will not change the volatility of crypto – but market maturation should give us the tools to invest in a more thorough manner.

Tags: AdoptionStablecoins
ShareTweet
Tokoni Uti

Tokoni Uti

Tokoni Uti is a Lagos-based writer with several years of experience. Her work has appeared in the Huffington Post, the Los Angeles Free Press and the San Diego Free press among others. She is a graduate of Bowen University.

Recommended For You

Toyota Motor Corporation Announces a Web3 Hackathon on Astar

by Kester Odero
February 1, 2023 - 7:47 am
0
toyota

Toyota will sponsor a Web3 hackathon at HAKUHODO KEY3, which Astar and Japan's largest advertising company co-founded.

Read more

UK Looking to Put More Pressure Into Crypto Regulation

by Kester Odero
February 1, 2023 - 6:04 am
0
UK

The UK government, as of recent reports, is planning "severe repercussions" for firms that missed the January 31 deadline amid market troubles.

Read more

Justin Sun Says His KPI for Current Year Is to Make TRX Adopted by 5 Countries as Their Legal Tender

by Umair Younas
January 29, 2023 - 10:41 am
0
Tron TRX

Justin Sun labelled this objective as ambitious. Nonetheless, he noted that dedication and hard work can play a significant role in achieving his goal.

Read more

Visa CEO Believes Stablecoins and CBDCs Might Have a “Significant Role” in Payments

by Kester Odero
January 25, 2023 - 8:15 am
0
VISA

The chief executive of credit card giant Visa is still convinced that blockchain-powered solutions can be included in its services and capabilities.

Read more

Swiss Bank Cité Gestion Makes a Game-Changing Move by Becoming First to Tokenize Its Own Shares

by Shayan Chowdhury
January 24, 2023 - 10:01 am
0
Bank Cité Gestion

Private Swiss bank Cité Gestion makes a bold step in the Web3 payment industry by tokenizing its own shares.

Read more
Next Post

U.S. China Trade: Trump’s Tweets Force Chinese to Delay Washington Visit

PARTNERS LIST

PRESS RELEASE

Coinbase-Backed DeSo Unveils MegaSwap, a “Stripe for Crypto” product, with Over $5 Million in Volume

by chainwire
February 7, 2023 - 3:02 pm
0

Los Angeles, United States, 7th February, 2023, ChainwireDeSo is excited to announce the launch of MegaSwap – a revolutionary, cross-chain...

The Future of DAOs Takes Center Stage in Tel Aviv

by chainwire
February 6, 2023 - 8:00 am
0

Tel Aviv, Israel, 6th February, 2023, ChainwireThe DAOVOZ collective is excited to announce the inaugural DAOVOZ Tel Aviv event on...

Game Space Powers Web3 Gaming With the Launch of Player One Tournament, Aligns Partnership with Splinterlands, Gods Unchained and Big Time

by Max Clark
February 3, 2023 - 12:00 pm
0

For Player One Tournament, Game Space will continue to cooperate with more public chains, various gaming guilds, Web3 Infra, Web3...

Metacade presale investment rockets past $5 million as GameFi investors hurry to buy remaining MCADE tokens

by chainwire
February 2, 2023 - 3:38 pm
0

London, United Kingdom, 2nd February, 2023, ChainwireThe Metacade presale is selling out fast with stage 3 coming to a close...

BlockchainReporter is a trusted name in the cryptocurrency and blockchain technology news space, keeping its readers abreast of the latest and most significant trends in the industry.

Here at BlockchainReporter, our team of global writers is dedicated to providing price analysis on leading cryptocurrencies and covering the latest developments pertaining to bitcoin news, altcoins news, blockchain news, NFT news and cryptocurrency adoption news from around the world.

News

  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • Adoption
  • NFT
  • DeFi
  • Metaverse

Info

  • Education
  • Glossary
  • Market
  • Press Release

Company

  • About Us
  • Terms & Conditions
  • Advertise
  • Sitemap
  • Contact

@2022 – Blockchainreporter.net. All Right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise

@2023 - Blockchainreporter.net. All Right Reserved.