Nuon v2 Whitepaper
  • Abstract
  • Introduction
  • Challenge
  • Architecture
    • Overview
    • Treasury
    • Deposit Conversion
    • Refilling Buffer
    • Vaults
    • Dutch Auction
    • Cross-chain Deposits
    • Governance
    • Emergency Mode
    • Minting Caps Equilibrium
    • Backstops
  • Governance
    • Veto System
    • Proposal System
    • Vote Power Weighting
  • NUON
    • Overview
    • Rebasing
    • Staking
  • MaxCap
    • Overview
    • Token Allocation
    • Staking Distribution
    • Claiming Excess
  • Miscellaneous
    • Security Audit
    • System Transition
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  1. Architecture

Deposit Conversion

Depositing 1 USDC yields 1 NUON in return, plus a small minting fee is applied. The minting fee is calculated as the number of USDC, prorated at the current Truflation APY. It is taken in order to prevent a siphoning attack in which a user could deposit USDC and withdraw more USDC (as they would have more NUON over time) before it is put to work in the protocol - effectively getting the yield from Nuon without supplying USDC to generate the yield.

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Last updated 10 months ago