> 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 the staked form of NaraUSD. It is an ERC-4626 vault share whose exchange rate against NaraUSD rises as the payment-financing portfolio pays, and it is the token that bears portfolio losses once the Insurance Fund is exhausted.** Yield is variable, is not guaranteed, and depends on borrower draw activity, pricing, settlement timing, credit losses, the reserve mix and fees.

#### How yield accrues

1. **Stake.** Deposit NaraUSD into the staking vault and receive NaraUSD+ at the current exchange rate. Staking is permissionless. The rate at launch was 1 NaraUSD+ = 1 NaraUSD.
2. **Earn.** As positions pay, realized income returns to the vault. NAV is calculated off-chain, verified through the maker → reviewer → executor process, and written on-chain as the new exchange rate. Rewards vest into the rate over a set period rather than jumping, and reward issuance can never exceed the on-chain unbacked-mint cap.
3. **Hold.** Each NaraUSD+ is worth more NaraUSD over time. There is nothing to claim and no rebasing balance; the token count stays constant and the rate moves.

The live exchange rate is on the [dashboard](https://app.nara.io/transparency). Illustration, with hypothetical rates: a holder who staked 10,000 NaraUSD at a rate of 1.00 and unstakes at 1.04 receives 10,400 NaraUSD before any loss event. A realized credit loss that exceeds the Insurance Fund reduces the rate, so the same holder could receive less than 10,000.\ <br>

### Why the NaraUSD+ APR can differ from the portfolio yield

The portfolio's yield accrues to the staked share of supply. When the staked ratio is below 100%, the yield on the whole book is distributed over a smaller base, and the NaraUSD+ APR is higher than the blended portfolio yield.

#### Unstaking

| Stage               | What happens                                                                                                                      | Timing                                       |
| ------------------- | --------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- |
| Request             | Submit an unstaking request. The NaraUSD+ is locked in a silo and continues to accrue at the vault rate during the cooldown.      | Immediate                                    |
| Cooldown            | The protocol uses the window to manage liquidity across positions.                                                                | 7 days                                       |
| Claim               | The NaraUSD+ is burned and NaraUSD is returned at the exchange rate prevailing at claim.                                          | After day 7                                  |
| Exit to stablecoins | Authorized Users then redeem NaraUSD; anyone can sell NaraUSD+ or NaraUSD on secondary venues at market price instead of waiting. | Up to a further 7 days via the primary route |

#### Where it sits in a loss

NaraUSD+ is the second tier of the loss waterfall. It receives the yield in exchange for taking losses after the Insurance Fund and before NaraUSD. It can lose principal.

#### Fees

At launch the only deduction from gross strategy yield is the 10% share retained in the Insurance Fund, about 1% of assets a year at the target rate, which stays in the holders' own first-loss buffer. There is no management fee, no performance fee and no mint or redeem fee. Nara will announce any protocol fee here before it takes effect.


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