How Nara generates yield

Payment financing (PayFi) is short-duration working capital for businesses whose money is on its way but has not yet arrived. A payment company that wants to pay a recipient today, before the sender's fiat has cleared, borrows for the gap and pays a premium. Nara lends into that gap on-chain and passes the premium to NaraUSD+ holders.

One transaction, start to finish

Step	What happens	Typical timing
1. Payment initiated	A sender pays fiat into the payment company's local account (for example, a remittance from the United States to India).	T+0
2. Credit drawdown	The payment company draws stablecoin from a Nara-funded facility, 24/7 including weekends, to fund the payout immediately.	Minutes
3. Payout	The destination payment partner pays the recipient in local currency.	Seconds to hours
4. On-ramp	The sender's fiat clears and is converted back to stablecoin.	Hours to a few days
5. Repayment	Principal plus the financing premium returns to the Nara vault. The premium accrues to NaraUSD+.	Hours to five days

The whole cycle typically completes in hours to a few days. The premium reflects what faster settlement is worth to the borrower: the ability to pay out on a Saturday, to skip pre-funding accounts in every corridor, or to grow volume without raising equity to fund float.

Where the demand comes from

Settlement gaps appear wherever a business pays before it collects.

PayFi use case	What creates the financing need
Remittance settlement	Providers pre-fund payouts across corridors while sender funds clear.
Merchant settlement	Merchants want receivables before card networks settle.
Payment processors	Processors bridge timing between merchants, banks and networks.
Card acquiring	Acquirers bridge customer payment, network settlement and merchant payout.
B2B payouts	Platforms pay vendors and contractors before incoming funds clear.
Stablecoin on/off-ramps	Ramps need short-term liquidity to support inflows, outflows and treasury.

Market context

Stablecoin use in cross-border payments is growing at roughly 35% year over year but remains about 1% of global FX payment flow (an estimated $1.9 trillion of $194 trillion annually). Pre-funded accounts hold an estimated $5 trillion of idle capital globally, an implied $200 billion of lost interest each year.

From premium to NaraUSD+ yield

1. Borrowers pay the financing premium into the vault as flows settle.

2. A 10% share of gross strategy yield, about 1% of assets a year at the target rate, is retained in the Insurance Fund. It stays in the holders' own first-loss buffer. This is the only deduction at launch; Nara takes no protocol fee until a later stage.

3. The remainder is written into the NaraUSD+ exchange rate through the three-stage NAV process, bounded by the on-chain mint cap.

How this differs from typical DeFi yield

The return is linked to payment volume and working-capital demand, not to token emissions, crypto leverage or funding rates. It carries its own risks in exchange: borrower performance, settlement timing, operational execution, legal structure and concentration. Evaluate it through both a yield lens and a risk lens; the Portfolio, Risks and Insurance Fund pages exist for that purpose.