NaraUSD+

Earning Yield with NaraUSD+

Nara directs the yield generated from its PayFi portfolio exclusively to holders of staked naraUSD (NaraUSD+). Users stake their naraUSD to receive naraUSD+, which represents their proportional share of the yield-generating vault. The naraUSD+ token is designed to automatically appreciate in value as yield accrues, allowing users to earn returns passively.

Unstaking Process

When unstaking, snaraUSD+ tokens are burned, and users receive their proportional share of naraUSD based on the current, appreciated exchange rate. To ensure there is sufficient time to unwind the underlying PayFi assets in an orderly manner, the protocol may enforce a cooldown period before withdrawals can be executed.

Yield Accrual Mechanism

1. Staking naraUSD: Users deposit naraUSD into the staking contract, which in turn mints naraUSD based on the current exchange rate (initial rate: 1 naraUSD+ = 1 naraUSD).

2. Yield Distribution: Yield generated from the real-world PayFi assets continuously flows into the staking contract, increasing the total naraUSD reserves held within it.

3. Passive Growth: As the vault's reserves grow, the value of each naraUSD+ token appreciates proportionally. This mechanism ensures that returns are automatically reflected in the increasing value of naraUSD+, requiring no manual intervention from the user.

Unstaking Process

When users unstake, their naraUSD+ tokens are burned, and they receive their proportional share of naraUSD calculated at the current exchange rate. To ensure orderly unwinding of the underlying PayFi assets, the protocol enforces a 7-day cooldown period before withdrawals can be completed.