nUSD Stablecoin

What is nUSD?

nUSD is Nexxore's native synthetic stablecoin, pegged 1:1 to the US Dollar. Unlike traditional stablecoins where collateral sits idle, nUSD is backed by productive collateral that generates yield.

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How It Works

┌─────────────────────────────────────────────────────┐
│                  nUSD ARCHITECTURE                  │
├─────────────────────────────────────────────────────┤
│                                                     │
│   Collateral (ETH/WBTC/USDC)                       │
│         │                                           │
│         ▼                                           │
│   ┌───────────────┐                                │
│   │  nUSD Mint    │ ───▶ User receives nUSD       │
│   │  Engine       │                                │
│   └───────────────┘                                │
│         │                                           │
│         ▼                                           │
│   ┌───────────────┐                                │
│   │  Collateral   │ ───▶ Deployed to yield        │
│   │  Deployed     │      protocols (Aave,         │
│   │               │      Compound, etc.)          │
│   └───────────────┘                                │
│         │                                           │
│         ▼                                           │
│   Yield accumulates to nUSD holders                │
│                                                     │
└─────────────────────────────────────────────────────┘

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Minting nUSD

Step 1: Deposit Collateral

Deposit supported assets:

• ETH

• WBTC

• USDC

• DAI

• stETH

• rETH

Step 2: Set Collateral Ratio

Choose your collateral ratio based on risk tolerance:

Strategy	Collateral Ratio	Liquidation Threshold
Safe Yield	150%	130%
Balanced	175%	150%
Aggressive	200%	175%
Degen	250%	200%

Step 3: Mint nUSD

Receive nUSD proportional to your collateral and chosen ratio.

Example:

• Deposit: $15,000 in ETH

• Collateral Ratio: 150%

• nUSD Minted: $10,000

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Why nUSD?

🔄 Productive Collateral

Traditional CDPs (like MakerDAO) keep collateral idle. Nexxore deploys your collateral into yield-generating protocols while you hold nUSD.

📊 Yield Bearing

nUSD inherently earns yield. The longer you hold, the more value accrues.

🛡️ Over-Collateralized

Always backed by more collateral than nUSD in circulation. No algorithmic risks.

⚡ Auto-Protection

Smart rebalancing helps prevent liquidations by auto-adjusting positions.

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Stability Mechanism

nUSD maintains its peg through:

1. Over-Collateralization

Minimum 130-250% collateral backing (depending on strategy).

2. Liquidation Engine

Under-collateralized positions are liquidated to maintain system health.

3. Stability Fee

Annual fee paid by minters, adjustable by governance.

4. Redemption Arbitrage

If nUSD < $1: Arbitrageurs buy nUSD cheap, redeem for $1 of collateral If nUSD > $1: Arbitrageurs mint nUSD, sell for > $1

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Fees

Fee Type	Amount	Description
Minting Fee	0%	No fee to mint nUSD
Stability Fee	0.5-3.5%	Annual, varies by strategy
Redemption Fee	0.5%	Fee when burning nUSD
Liquidation Penalty	10%	Penalty on liquidated positions

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Use Cases

1. Leverage Without Selling

Hold ETH exposure while accessing liquidity via nUSD.

2. Yield Farming

Deploy nUSD into additional yield opportunities.

3. Trading Capital

Use nUSD as margin for perpetual trading.

4. Treasury Management

DAOs can hold nUSD for yield without directional risk.

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Risks

Risk	Mitigation
Smart Contract Risk	Audits, bug bounties, timelocks
Collateral Volatility	Over-collateralization, liquidations
Protocol Risk	Diversified deployment, due diligence
Depeg Risk	Arbitrage mechanisms, reserve fund

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Next Steps

• Perpetual Vaults →

• Strategy Sandbox →