Tokenomics

Users will interact with two classes of native tokens when engaging with our products: nAssets and the $Psi token.

nAssets

nAssets are "ledger" tokens that represents a user's deposits with Nexus Protocol.

In short, whenever a user deposits assets (e.g. bLUNA or bETH) in our vaults, they will be issued with the corresponding nAsset (e.g. nLUNA or nETH) in return.

When users wish to withdraw their deposits in any of our vaults, they are in effect reversing the above process by exchanging the nAsset tokens in their wallets for the corresponding token deposit.

It is critical for users to ensure that they maintain full custody of these nAsset tokens if they wish to access or withdraw their deposits in the future. If users trade away nAsset tokens, they are effectively trading away their deposits with Nexus Protocol.

cnAssets

cnAssets are compounding nAssets. Users have an option to receive cnAssets as their ledger token instead of nAssets when using any of the vaults. It works same way as nAssets, except that instead of receiving yield in the form of $Psi, yield is paid in the original bAsset. Unlike nAssets that require the yield to be claimed, cnAssets represent a pro-rata percentage claim on the underlying amount of bAssets in the vault, resulting in users being able to claim more bAssets over time compared to their original deposit.

$Psi Token

Our native CW-20 token ($Psi) on the Terra blockchain is core to Nexus Protocol and our vault strategies.

$Psi is distributed to vault depositors as yield

bAsset vaults currently pay out yield to depositors in the form of $Psi tokens. To achieve this, the vault converts rewards from the strategy into $Psi through recurring market buybacks.

$Psi is actively accruing value for governance stakers

As Nexus Protocol is offering a service to vault depositors that helps them increase the yield on their assets, the protocol charges a fee for this service. Currently, this is designed as a percentage of the spread between the Nexus yield and the 'manual' yield that a normal user could achieve.

These fees go directly to users staking $Psi in the governance module of the protocol in exchange for their active participation in governance proposals and help to grow the Nexus community at large. For more information on governance, please head here.

$Psi is used as the paired asset for Nexus' liquidity pools

All of the liquidity pools deployed by Nexus Protocol will be paired against the $Psi token.

nAsset-Psi liquidity pools are designed specifically to drive powerful recursive effects for the protocol resulting in growth in TVL for the protocol and to spur usage of these pools due to arbitrage. This is achieved because nAssets are by definition yield generating assets with the yield (accrued in native $Psi) being deposited on a single-side basis into these pools.

Over time, arbitrage conditions incentivize users to mint nAssets and sell them for $Psi in these pools thus growing the total bAsset deposits with Nexus Protocol whilst generating valuable swap fees for liquidity providers. We are confident that these mechanisms in addition to $Psi token incentives will make our nAsset pools one of the most liquid pools on the Terra blockchain.

Token Distribution

Distribution of the $Psi token has been carefully designed to ensure the long-term success of the protocol and positive value accrual to stakeholders.

Changes to Token Distribution

Token Addresses

Please ensure that you are only interacting with the tokens issued by Nexus Protocol. Be wary of tokens with similar sounding names.

Token Name and TickerCW-20 Token Address

Psi

Hk4aJGF2WUG9M3RCTG7rXR3G8zSjimyz7bhJShd8NRtr

nLUNA

terra10f2mt82kjnkxqj2gepgwl637u2w4ue2z5nhz5j

cnLUNA

terra1u553zk43jd4rwzc53qrdrq4jc2p8rextyq09dj

nETH

terra178v546c407pdnx5rer3hu8s2c0fc924k74ymnn

cnETH

terra1nagqpmyw55yjphea4rhntlfv87ugmeaj8ym756

Last updated