Nara Blockchain Protocol

Protocol Overview

Nara's blockchain protocol, a derivative of Perimeter, is an open-source solution from Circle Research (a division of Circle) designed to facilitate USDC lending markets and various applications. This protocol extensively leverages composable, open-source standards such as ERC-20, ERC-4626, and Verite.

Overview

The protocol supports a wide array of on-chain asset management. We work with a variety of asset managers that are experts in variety of different strategies, such as payment financing, market making, arbitrage, basis trade and other strategies. Our objective is to continuously expand and enhance Perimeter to accommodate an increasing variety of use cases across both RWAs and digital assets.

NARA Implementation

Nara has adapted and extended the Perimeter Protocol to create a specialized platform, leveraging the ERC-4626 standard for composability and adhering to EIP-4626 (published and maintained by Ethereum.org) , for its various investment strategy Vaults product, incorporating features tailored to streamline payment-integrated financial operations and asset-backed lending. Key enhancements made by Nara include:

• Enabling seamless loan renewals to support continuous payment flows to PayFI transactions

• Offering specialized vault types for fixed-term and flexible-term loans, accommodating diverse asset classes.

• Facilitating netting of payment inflows and outflows to optimize liquidity for PayFI use cases.

• Adding granular timestamped events to track the lifecycle of payment-linked and asset-backed loans with precision.

• Implementing advanced accounting tools to support efficient off-chain reconciliation for transactions and management.

• Simplifying the yield calculation mechanism to provide predictable returns for investment vault investors and PayFI participants.

The Nara protocol comprises several key components, each designed to enhance functionality for investment vault operations.

Vault Configurator: Defines vault settings, including asset type (e.g., tokenized real estate, commodities), duration, capacity, and fees, while creating or updating investment vaults.

RWA Loan Vault: A yield-bearing vault compliant with EIP-4626, accepting USDC or EUROC for tokenized asset-backed loans and issuing ERC-20 vault tokens to investors.

Loan Creator: Specifies loan terms, such as interest rates, loan types, and maturity dates, managing the creation or modification of loans.

Loan Record: Maintains on-chain loan data, capturing terms and tracking status updates across the investment vault transaction lifecycle.

Borrower Wallet: A multi-party computation (MPC) wallet controlled by the borrower, holding funds drawn from the Investment Vault for payment or asset-related purposes.

Fee Collector: Automatically gathers fees during loan repayments or renewals in investment vault transactions, allowing the Admin to withdraw them at designated stages.

Access Manager: Maintains a registry of authorized addresses, ensuring only whitelisted users can engage with the PayFI protocol, with verification on every transaction.

Withdrawal Processor: Manages early withdrawal requests and processes termination notices for loan renewals, ensuring flexibility for investment vault participants.