Unlike traditional stablecoins that are pegged to fiat currencies and lose their purchasing power over time, Nuon is a yield-bearing stablecoin designed to hedge against inflation by dynamically adjusting its value based on the real-time cost of living according to Chainlink-powered index, Truflation.
Back in 2022, Nuon Protocol joined the Chainlink Build program to accelerate Nuon’s adoption through Chainlink’s oracle services. Recently, Nuon announced the integration of Chainlink Price Feeds and Automation into Nuon v2, designed to benefit both stablecoin holders who want to beat inflation and experienced crypto-native investors seeking high yields.
Nuon v2 users receive one Nuon for every stablecoin deposited into the protocol. Each Nuon is pegged 1:1 to USD and uses a rebasing mechanism to stream new Nuon into users’ wallets. The protocol’s governance token, nuMint, rewards holders with the accumulated surplus yield generated from capital allocation strategies they vote to employ.
The protocol is protected from liquidity shocks by a dynamic treasury buffer that retains sufficient capital for users to redeem Nuon 1:1 for stablecoins at any time. A backstop holds tokenized counter-inflationary assets such as gold, silver, and oil to safeguard v2 in the event that inflation surpasses the protocol’s generated yields.
Chainlink Price Feeds have enabled over $19 trillion in transaction value, even during volatile market conditions and adverse events such as flash loan attacks. Price Feeds provide Nuon v2 with the high-quality, tamper-proof data necessary to evaluate and rebalance deposited assets and yields.
Automation is a decentralized service that allows developers to automate critical onchain functions at regular time intervals or in response to external events, increasing efficiency and minimizing potential for human error. With Automation, Nuon can securely automate the yield distribution to Nuon holders and stakers, as well as trigger built-in economic security layers.
“Adopting Chainlink Price Feeds and Chainlink Automation into Nuon v2 significantly enhanced our capabilities, cost-effectiveness, security, and user experience,” said Nuon co-founder Cameron Lee in an official announcement.
“Chainlink remains the gold standard of decentralized data and automation for all high-quality protocols, and for a good reason.”
To learn more about Nuon, visit their website, X, Telegram, and Discord.