> 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 NaraUSD is the base synthetic digital dollar in the Nara ecosystem. It is designed for liquidity, composability, and access to PayFi-backed digital dollar infrastructure. NaraUSD is backed by a portfolio that may include liquid reserve assets and short-duration PayFi assets. Liquid reserves help support redemptions and operational flexibility, while PayFi assets are intended to generate returns from payment financing opportunities. #### 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 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. --- # 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.