The Treasury Buffer provides instant stablecoin-availability for redemptions
Anybody holding Nuon can always redeem it 1-to-1 for stablecoins. This is because the dynamic Treasury Buffer keeps enough capital on-hand to cover redemptions. The protocol is safeguarded against liquidity shocks, and users can rest easy knowing their Nuon is always fully backed.
The Backstop is always there in case yields struggle to match inflation
There may be times that inflation is greater than the yields generated by the protocol. One of the mechanisms for protecting against that scenario is the Backstop. The Backstop holds tokenized counter-inflationary assets like gold, silver and oil.
nuMINT holders are the last line of defense in insuring the protocol
nuMINT holders act as the protocol's insurers, balancing the need for profit with the responsibility of managing risk. This governance model ensures that Nuon holders are shielded from protocol risks, while nuMINT holders are rewarded with excess yields for their active participation.
“The real solution is secure currencies—or flatcoins”
Nouriel Roubini
Professor Emeritus
