What is Neutral?
Neutral aims to create blockchain-native financial instruments and the infrastructure that underpins them. The team at Neutral is committed to facilitating wider crypto adoption through competitive offerings and services.
The team is led by investment, trading, and technical professionals well-versed in a wide array of topics. In addition, the team blends interdisciplinary topics from academia along with industry experience to innovate further upon the decentralized financial system.
To draw upon a parallel, the traditional market is still seeing accelerated growth in exchange-traded funds and derivative products across asset classes. Neutral is aiming to bring these ideas to crypto by offering the same value proposition but constructed in a more open, transparent, effective, and decentralized manner.
What is the significance of what the team is trying to accomplish?
There is unmet demand for financial instruments to better obtain proper exposure to the cryptomarkets. In addition, the infrastructure to support such products is still very nascent. There are many barriers that are operational and inefficient that lead to fragmented liquidity pools, presenting a large hurdle to adoption. The team at Neutral hopes to expand the ecosystem and provide globally-shared liquidity and activity for crypto-assets.
Who are the official partners?
Neutral is supported by partners such as Sequoia Capital, Bixin, and FBG Capital. We also leverage external service providers regarding legal, accounting, and smart contract auditing practices.
Our network extends also to wallets platforms, financial institutions, and exchanges to broaden the use cases for Neutral products. These partners will continually evolve to meet the demands of users.
What are the social channels I can listen in on?
We definitely encourage all of you to stay engaged with us, and can find us through several avenues:
What is the Neutral Dollar? Why was it created?
The Neutral Dollar is a basket instrument comprising of several stablecoins. By aggregating several independent stablecoins, the Neutral Dollar is a product that mitigates price fluctuations and credit risk to provide a lower volatility coin that can be used for a better unit of account and medium of exchange. Neutral Dollar is the first product that is designed by the Neutral team.
How is the Neutral Dollar different from other stablecoins?
Many stablecoins maintain their value by various different methods, some which may be unproven or empirically flawed. What sets Neutral Dollar apart is that the stablecoin maintains its stability through financial theory that has been tested and proven in traditional markets.
Some major benefits resulting from how the Neutral Dollar is constructed extends to its on-chain transparency, quick redeemability, mitigated counterparty risk, and subdued price volatility. We believe these are strong selling points when compared to the value proposition of standalone stablecoins. We encourage everyone to check out our Medium articles for more information regarding these aspects.
What is the process that helps the Neutral Dollar maintain its value?
The process that helps Neutral Dollar maintain stability to the value of the basket is through the creation and redemption process similar to the construction of exchange-traded funds. Rational arbitrageurs are driven by profit-seeking behavior, and aim to provide price stability driven by the expansion and contraction of the Neutral Dollar token supply.
How can Neutral Dollar be useful in primary market activity?
Neutral Dollar can be used as a medium to offer traders an opportunity to engage in low-risk strategies through stablecoins. These market makers are able to mint Neutral and exchange across different constituents, injecting liquidity and pricing information in the process to lessen friction in the cryptomarkets.
How can Neutral Dollar be useful in secondary market activity?
For holders, NUSD can be used as an asset for trading purposes, position management, payments, or lending services due to its qualifying features. A better stablecoin allows for more consistent usage and provides easier access to blockchain use cases.
How robust is the process that fuels Neutral Dollar?
The team at Neutral battle tests our product extensively through simulation from theory as well as market data. We have found that the stability of the Neutral Dollar is robust even if the composition is imbalanced. The team has also incorporated several controls to prevent bad actions from adversely impacting the product.
What is the governance structure of the Neutral Dollar?
Currently the composition of the Neutral Dollar is vetted by our team, ensuring that each of the constituents are appropriate in maintaining and contributing to the value of the basket. Over time, we may plan to incorporate a more community-driven governance structure where holders of Neutral Dollar can vote to reconstitute the basket.
Who is going to use the Neutral Dollar?
The Neutral Dollar is intended to be used by anyone interested in gaining and managing exposure to the cryptomarkets. Traders, developers, retail investors, institutions, and exchanges alike can find use cases for the Neutral Dollar.
How can I obtain the Neutral Dollar?
The Neutral Dollar is going to be listed and purchasable on several exchanges, or can be accessed and obtained natively through the Neutral platform via one of our clients or wallet network.
How can I check if my funds are secure?
One main advantage that the Neutral Dollar has over other stablecoins is on-chain collateralization, which you can find on Ethereum at our smart contract address: 0x0c6144c16af288948c8fdb37fd8fec94bff3d1d9
[Note: please do not send tokens directly to this address. Any activity related to interacting with our smart contract should be properly directed through our Neutral platform]
Who are your major competitors regarding the Neutral Dollar?
We find other stablecoins to be complementary to our Neutral Dollar product. As its popularity grows, so will the other stablecoin constituents and possible other newly emerging models. The crypto economy has enough space to present a diverse offering of stablecoins, and we’re also excited to see the growth in upcoming time. We are helping overcome several operational barriers through basketing, hoping to bring wider adoption at scale as a collective addition to what is already accessible.
Which exchanges will list the Neutral Dollar?
We are working with several exchanges to allow wider consumer usage of our product, and will update our community when the time comes. You can sign up for updates or listen in on our social media channels.
What other products or ventures are being explored?
As mentioned, Neutral is aiming to build out the infrastructure for greater liquidity on blockchain-native instruments. Once our ecosystem has matured, the Neutral team may consider different ERC20/cross-chain baskets and derivatives alike as the natural next step.
Want to work with us? We’re hiring!