FAQ

What is NaraUSD?

A synthetic digital dollar issued on-chain, backed at issuance 1:1 by a portfolio of liquid reserves and short-duration payment-financing assets. It is designed to track $1.00 and to be freely transferable and composable. It is not a fiat-backed stablecoin and not an insured deposit.

What is NaraUSD+?

The staked version of NaraUSD. Stake NaraUSD, receive NaraUSD+, and the exchange rate rises as the portfolio pays. NaraUSD+ takes losses after the Insurance Fund and before NaraUSD.

What is PayFi?

Short-term financing that funds a payment before the money behind it has finished settling. See What is PayFi?.

Where does the yield come from?

Premiums paid by payment businesses (remittance companies, payment service providers, card acquirers, on/off-ramps) for short-duration liquidity, plus the yield on the liquid reserve. Not token emissions.

What yield should I expect?

Nara targets a 9% to 10% base yield. On the initial August 2026 allocation the blended figure was 9.71% gross, or 8.73% after the 10% Insurance Fund share. Live APR and trailing 7, 14 and 30-day averages are on the transparency dashboard. Yield is variable and not guaranteed.

Do I earn yield by holding NaraUSD?

No. Yield accrues only to NaraUSD+.

How long does it take to exit?

Two steps through the primary route: 7 days to unstake NaraUSD+ into NaraUSD, then up to 7 days for an Authorized User to redeem NaraUSD into stablecoins (instant if the request fits the liquid buffer). Fourteen days end to end. Both tokens can also be sold on secondary venues at any time at market price.

Is the 7-day redemption guaranteed?

No. It is the operating target. If redemption requests exceed the liquid buffer, they are served in order from the natural roll-off of underlying positions, whose longest notice period is about 30 days. Requests and fulfilments are on-chain, so actual redemption behaviour is auditable.

Who can mint and redeem?

Authorized Users who have completed KYC/KYB. Everyone else buys and sells on secondary venues. Staking and unstaking are permissionless for any NaraUSD holder.

What protects my principal?

Underwriting before capital moves; concentration limits; a liquid reserve; continuous covenant monitoring; and a three-tier loss waterfall in which the team-funded Insurance Fund ($250,000 seeded, growing by 10% of yield) absorbs losses first. None of this eliminates risk. NaraUSD+ can lose principal, and NaraUSD can be affected in an extreme event. See Capital Protection.

Who are the borrowers?

Licensed and venture-backed payment companies, and regulated asset managers running payment-financing strategies. Current positions and their weights are on the transparency dashboard. Each was underwritten on Nara's scorecard and approved by the Investment Committee; see Portfolio and Allocation.

Is there a protocol fee?

Not at launch. The only deduction from gross yield is the 10% share directed to the Insurance Fund. A protocol fee may be introduced after initial scaling. Mint and redeem fees are configurable at the contract level; any change is announced before it takes effect.

Are the contracts audited?

Yes. Paladin audited the NaraUSD token and minting contracts (final report, February 2026). Cantina reviewed the BoringVault architecture underlying the operated vaults (August 2025). Reports are on the Code Audits page.

Who controls the protocol?

Every privileged action requires 3 of 5 hardware-backed signers through a maker → reviewer → executor process. A single-trigger pauser can stop the protocol but cannot move funds. Reward issuance is capped on-chain, and the cap moves only through a hard-coded 2-day, vetoable timelock. See Roles, Multisig and Timelocks.