Vaults

Vaults in Nuon v2 have the flexibility to contain a wide array of assets, making them highly adaptable and versatile. In the initial phases of Nuon, while the preference for US dollars persists, these vaults will primarily consist of price-neutral, yield-bearing assets. These assets do not carry a directional bet beyond the stable value of USDC and their respective yield. Examples include Aave aUSDC, Uniswap USDC-USDT LP tokens, and Curve 3CRV.

The selection and profile of vault assets are governed by a robust governance system rather than enforced through technical limitations. Nuon v2 leverages ERC-4626 standards, which mandate that any protocol implementing this standard must use ERC-20 tokens to represent shares. This ensures that vaults can hold diversified baskets of assets, enhancing yield potential while maintaining stability.

The choice of these asset baskets will be overseen by a risk-averse, yield-seeking quorum of governance participants. This group of vetoers will rigorously evaluate and approve assets to ensure they meet the expected standards and contribute to Nuon’s goal of providing reliable, inflation-protected yields

By allowing vaults to incorporate any delta-neutral basket of assets, Nuon v2 maximizes its adaptability and yield potential, catering to the diverse needs of its user base while maintaining a focus on stability and security.

ERC-4626 vaults can also be leveraged to issue receipt tokens for protocols which otherwise don’t. ERC-4626 vault integrations allow the protocol to partner with and generate yields from virtually any protocol. With the right function logic, ERC-4626 vaults can also accumulate points, and claim airdrops.