Bridge your USDC to Neo X for the first time!
We’ve been working our butts off for the past month since mainnet has launched, and one of the biggest missing features at the moment in our opinion is a cross-chain bridge.
This is why we’ve been working hard to launch AsteroBridge, and in the first iteration we are bringing USDC to Neo X for the first time!
This will open the gates to countless activities on chain, such as: easier price setup for tokens, potential launch of LP pools with stablecoins, having an asset on chain that users can fall onto if they want to exit certain token positions, IDOs and Launchpads with stablecoins as the raising asset and much more..
How Will it Work?
Our bridge will allow users to easily bridge USDC over to the Neo X chain, which will appear as NUSD on Neo X.
Currently the bridge will allow bridging in and out of Neo X through BNB Chain, and down the line we will add more stablecoins and more chains you can bridge from and to.
For now BNB Chain is an easy option, and one that is familiar to most of the crypto userbase.
Security
The bridge features an external multisignature wallet to secure the funds from attacks, a backend that tracks suspect actions, and a double database to keep all on-chain data and bridge TXs, in order to make sure we don’t run into any exploits.
Each bridge transaction also has a specific nonce that is consumed on the other chain in order to avoid double spending.
Furthermore the bridge is very barebone and simple at the moment, in order to avoid any complications that could be exploited, therefore:
1 NUSD is always collateralized by 1 USDC on BNB Chain. When a user sends 1 USDC to the bridge, it gets locked in the BNB Chain bridge contract and minted on Neo X for 1 NUSD. When NUSD is sent back to BNB Chain it gets burned on Neo X and unlocked on BNB Chain.
How is the Peg Kept?
Currently 1 NUSD is kept at $1 through arbitrage, that can be managed directly by the community, and us in order to keep it as stable as possible.
As the LP for GAS-NUSD and other LPs become deeper and more liquid, the price will more and more stable, and harder to move.
We will also have a 24hr active arbitrage bot that will keep the price pegged consistently. Here’s an example on how users or the bot can maintain NUSD’s peg while making profit:
If the price of NUSD drops under $1, a user could utilize GAS to buy NUSD, bridge it to BNB Chain, where they can claim USDC, at a value of $1 per USDC. They can keep doing this until NUSD’s price gets pegged to $1 on Neo X again, while also making profit through arbitrage.
Future Plans
NUSD is a great way for us to start getting more activity on Neo X during these early days, and a fantastic way to give more options to users. But we also have plans to include NUSD deeply into our ecosystem and future features, and to expand the choice of bridgeable stablecoins to Neo X. Our goal is to make this chain as liquid as possible in order to get it to blow up this year.
Here are some of the short-medium term plans we have:
- Make NUSD an interest bearing stablecoin with passive yield, by utilizing part of the funds to purchase yield bearing bonds or other safe investments.
- Support bridging for USDT, DAI, TUSD
- Support 10+ major blockchains
- We will add lending & borrowing for NUSD through our future platform, or potentially in collaboration with Intersect Finance.
What about other stables?
In the event that official USDC, USDT or any other stablecoins will be brought to the chain, or an official Neo X bridge that makes our stablecoin less relevant, NUSD will keep existing and we will create a stableswap that will help users exchange stablecoins at a price impact 0.
If NUSD should become irrelevant down the line, we will simply stop rewards on future farms, and replace the existing NUSD farms with more relevant USDC or USDT LP Farms, at which point users will be able to swap their NUSD for other stables, or to bridge their NUSD back to their origin chain, without losing anything.
Conclusion
We hope you are as excited as we are for the future of Neo X and all of the future opportunities we can get from bringing stablecoins to the chain.
The bridge will go live at 5 PM UTC on September 2nd.
Thank you for all of the support so far, the Neo X community has been amazing to Asteroneo.
