Abstract

Price inflation remains one of the most understated issues for global stablecoin holders.

According to US CPI, in the past 5 years, all assets kept in stablecoin lost 17% of value, and according to Truflation's CPI the loss was larger than 26%.

There is ~$80 billion in latent stablecoins in DeFi, seeking protection from accumulated inflation. Those holders desire modest, reliable, low-risk returns but find defi protocols prohibitively risky and complicated.

On the other hand, those best to source reliable returns are crypto-natives: risk-seeking investors who demand high yields and are comfortable taking enormous risks to get them.

Nuon v2 bridges the gap between stablecoin holders seeking modest returns and crypto-native investors seeking high yields.

Nuon v2 ensures stable inflation-hedging yields for NUON holders while rewarding nuMint governance token holders with the accumulated surplus yield generated from strategies that they vote to allocate capital towards.

Nuon v2 uses a lightweight veto-based governance system with optimistic security assumptions to enforce risk preferences while allowing any asset as a source of yield. The backstop function protects the protocol and ensures NUON holders at least the inflation-level yields, also during times when inflation is higher than yields.