Transparency

Transparency is fundamental to Nara, ensuring users maintain confidence in the stability, security, and operations of NaraUSD. Through independent reserve audits, custody attestations, and real-time onchain monitoring, the protocol delivers complete accountability to its community.

Reserve Audits

To uphold the integrity of NaraUSD's backing and redeemability, the protocol commissions routine reserve audits by independent third-party firms. These examinations verify that every NaraUSD in circulation is fully supported by verifiable assets, encompassing liquid reserves, tokenized PayFi positions, and offchain holdings such as bank accounts. Independent Verification: Reputable audit firms examine the protocol's reserves to validate that backing meets or surpasses requirements for NaraUSD, with specific focus on the valuation and performance of PayFi assets and offchain capital held in traditional financial institutions.

Transparency and Accessibility: Audit findings are published openly, granting all users complete insight into reserve composition, backing quality, and offchain asset verification.

Regular Schedule: Examinations occur on a defined cadence (e.g., monthly or quarterly) to deliver continuous assurance regarding the protocol's financial soundness and asset coverage.

Custody Attestations

Safeguarding reserve assets is equally critical to building trust. Custody attestations verify that liquid reserves and offchain holdings are securely maintained and readily available for redemptions.

Trusted Custodians: Liquid reserves, including USDT and other stablecoins, are held with regulated custodians, while offchain assets such as bank accounts are maintained with licensed financial institutions to ensure security and accessibility.

Public Disclosure: Attestation outcomes are communicated to the community, strengthening confidence in the protocol's operational integrity and asset protection measures.

Onchain Transparency

The protocol harnesses blockchain technology to deliver real-time visibility into operations and reserves. Users can independently validate key metrics using publicly accessible tools.

Reserve Visibility: Liquid holdings and transactions are fully observable onchain through public block explorers, enabling users to independently verify the protocol's immediately available reserves.

Dashboard Metrics: The protocol dashboard offers live updates on essential data, including NaraUSD's circulating supply, liquid reserve breakdown, PayFi asset deployment, and staking participation.

Immutable Records: All reserve-related operations are permanently inscribed on the blockchain, guaranteeing transparency and auditability.

Transparency Reports

To complement onchain data and audit findings, the protocol issues regular transparency reports summarizing operations, reserves, and performance indicators.

Reserve Updates: Reports outline the structure and status of reserves, including liquid stablecoin holdings, PayFi asset deployment, offchain capital positions, and performance indicators of underlying payment financing arrangements.

Audit and Attestation Results: Findings from reserve audits and custody attestations are incorporated into reports, delivering a holistic view of the protocol's financial strength and backing verification.

PayFi Performance Metrics: Reports present aggregated performance statistics on the PayFi portfolio, including maturity timelines, yield generation rates, and counterparty distribution, while preserving commercially sensitive details.

Incident Reporting: Any irregularities, such as temporary liquidity constraints or PayFi asset shortfalls, are disclosed in reports along with remedial actions implemented to safeguard user interests.