Abstract

Flatcoins have surged in popularity amid rising concerns about inflation.

Among those concerned are holders of DeFi’s $80 billion in latent stablecoins. Stablecoin holders seeking protection from inflation desire modest, but reliable returns.

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 Truflation-level yields to NUON flatcoin 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 ensure NUON holders truflation-level yields during times when inflation is higher than yields