NaraUSD

NaraUSD

NaraUSD is a synethetic dollar backed by a diversified portfolio of real-world, short-term payment financing (PayFi) assets sourced from cross-border transactions.

Minting NaraUSD

NaraUSD minting is only for KYC-ed users ("Authorized Users"). Authorized Users can mint NaraUSD by depositing USDT, which is then allocated to conduct short-term cross-border payment financing. The value of NaraUSD is directly backed by the economic value of these underlying payment flows. NaraUSD is designed to be valued at 1:1 with USD value.

NaraUSD can also be acquired on the secondary market through various decentralized exchanges and liquidity venues.

Redeeming NaraUSD

NaraUSD redemptions are available to users who have completed the necessary KYC/KYB procedures with the protocol. Authorized Users can redeem NaraUSD for underlying liquid assets at a 1:1 USD value. Upon redemption, the protocol burns the corresponding NaraUSD tokens and transfers the equivalent value in a designated liquid asset to the user.

Liquidity Management

The protocol utilizes a dynamic liquidity management system to optimize the allocation of capital between the underlying PayFi assets and a liquid reserve, ensuring both high yield generation and timely redemption availability.

• Instant Redemptions: A liquid buffer, funded by matured PayFi assets, is maintained to service immediate redemption requests. Transactions are processed instantly when the requested amount is within the available buffer. The liquid buffer may be placed into liquid assets, such as onchain Tbills, USDS (Sky Money) or Aave to maintain sufficient liquidity while obtaining yields.

• Queued Redemptions: For redemption requests that exceed the current liquid buffer, the protocol queues the request. These are fulfilled within a standard 7 day processing window as the underlying short-term financing assets mature, ensuring the stability of the entire system.