FAQ

What is NaraUSD?

NaraUSD is a synthetic digital dollar issued on the blockchain that is backed by real-world, short-term payment financing (PayFi) assets sourced from cross-border transactions. It is designed to maintain a 1:1 value with the US Dollar. NaraUSD can be used for payments, integrated into various DeFi applications, and serves as the foundational asset within the Nara ecosystem.

What is NaraUSD+?

NaraUSD+ is the yield-bearing, staked version of NaraUSD. Users can stake their NaraUSD to receive NaraUSD+, which represents their proportional share of the yield-generating vault. The NaraUSD+ token automatically appreciates in value as yield accrues from the underlying PayFi assets, allowing users to earn passive returns without manual intervention.

What is PayFi?

Payment Financing (PayFi) represents the market for providing short-term capital to facilitate high-volume, cross-border payment transactions. In traditional finance, it can take several days for cross-border funds to clear. PayFi bridges this time gap by providing immediate liquidity to payment providers. By tokenizing these payment flows, Nara brings this multi-trillion dollar industry on-chain, creating a sustainable, real-world yield source for the DeFi ecosystem.

What is the APY for NaraUSD+?

NaraUSD+ targets a high, uncorrelated yield, currently exceeding 10% APR. Unlike many DeFi protocols that rely on token emissions or market speculation, this yield is generated directly from the premiums paid on real-world cross-border payment financing.

How is the yield generated?

The yield is generated through the financing of cross-border transactions. When payment providers require immediate capital to fund transactions while waiting for traditional bank settlements, Nara provides this short-term liquidity. The payment providers repay the financing with a small premium. This premium is the yield that flows directly into the NaraUSD+ staking contract, continuously increasing the value of NaraUSD+ tokens.

Who are the borrowers on Nara?

Nara facilitates lending to established fintechs looking to take advantage of stablecoins to do cross-border payments. These borrowers include remittance companies and payment service providers who need short-term liquidity to bridge bank settlement times. Nara conducts rigorous underwriting and manages the financing for these fintechs.

How is my principal protected?

Nara prioritizes capital preservation through stringent risk management and the inherent nature of PayFi. The underlying financing is backed by real-world payment flows, which historically exhibit very low default rates. Payment service providers have strong incentives to repay their short-term financing to maintain their core operations. Nara employs active collateral management and rigorous underwriting processes to protect lender funds.

What are the liquidity terms for NaraUSD and NaraUSD+?

Nara provides flexible access to capital through a dynamic liquidity management system:•Instant Redemptions: Nara maintains a liquid buffer funded by matured PayFi assets to service immediate redemption requests. If the requested amount is within this buffer, the transaction is processed instantly.•Queued Redemptions: For larger requests that exceed the liquid buffer, the protocol queues the withdrawal. These are fulfilled within a standard 7-day processing window as the underlying short-term financing assets mature (average payment cycles are around 2 days).

How do I mint and redeem NaraUSD?

Minting and direct redemption of NaraUSD are available exclusively to "Authorized Users" who have completed the necessary KYC/KYB procedures with the protocol. Authorized Users can mint NaraUSD by depositing USDT. For everyday users, NaraUSD can be acquired and traded freely on the secondary market through various decentralized exchanges (DEXs) and liquidity venues.

What price do I receive on redemption?

Authorized Users can redeem NaraUSD directly through the protocol for underlying liquid assets at a 1:1 USD value. When unstaking NaraUSD+, users receive their proportional share of NaraUSD based on the current, appreciated exchange rate, capturing all accrued yield up to the point of withdrawal.

What makes Nara's yield sustainable compared to other DeFi protocols?

Nara's yield is entirely disconnected from crypto market volatility and token speculation. The returns are driven by tangible economic activity—the multi-trillion dollar cross-border payments industry. Because the demand for global payments and short-term financing is consistent and growing, Nara provides a highly reliable, non-correlated, and sustainable source of yield that traditional DeFi lending protocols cannot match.