> For the complete documentation index, see [llms.txt](https://docs.nara.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nara.io/nara-protocol/narausd.md). # NaraUSD **NaraUSD is a synthetic dollar backed by a portfolio of liquid reserves and short-duration payment-financing positions. It is not a fiat-reserve stablecoin: its value depends on that portfolio performing, on redemption liquidity, and on the controls around both.** It is redeemable for a dollar, freely transferable, and to plug into any venue that accepts an ERC-20. On its own it earns nothing; yield accrues only to NaraUSD+. #### Minting Minting is available to Authorized Users: addresses that have completed KYC/KYB with Nara and are screened on-chain at the point of minting. An Authorized User deposits an eligible stablecoin (supported assets) and receives NaraUSD 1:1. Per-block mint limits are enforced in the contract. Anyone else can acquire NaraUSD on supported secondary venues at market price. See Eligibility and onboarding. #### Redeeming Authorized Users redeem NaraUSD for an eligible stablecoin at 1:1. The contract burns the NaraUSD and transfers the designated liquid asset. | Case | What happens | Timing | | ------------------------------ | ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | | Request fits the liquid buffer | Processed immediately | Instant | | Request exceeds the buffer | Queued on-chain; served in order as the buffer refills from position roll-off and new deposits | Targeted within 7 days; under sustained pressure, up to about 90 days set by the longest position terms | The queue is public chain state: requests, order and fulfilments are on-chain events. A queued request can be cancelled before fulfilment. #### What backs it The liquid buffer is held in stablecoins and on-chain savings products (currently Sky's sUSDS) so that it earns while it waits. The credit portfolio is listed position by position on the Portfolio page. The protocol backing ratio (total assets รท supply) is on the [dashboard](https://app.nara.io/transparency). #### Where it sits in a loss NaraUSD is senior to NaraUSD+. A portfolio loss is absorbed first by the Insurance Fund, then by the full value of NaraUSD+, and only then by NaraUSD. NaraUSD remains exposed to stablecoin, liquidity, custody, smart-contract, legal and operational risk, which no waterfall addresses. See Risks. #### Secondary price NaraUSD can trade above or below a dollar on a DEX. Primary redemption at 1:1 for Authorized Users anchors the price; secondary depth is not guaranteed by Nara. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.nara.io/nara-protocol/narausd.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.