NAOS Finance is an on-chain loan protocol based on real assets. By working with a third party in the real world, users can obtain fiat currency loans converted from stablecoins, using physical assets as collateral. NAOS Finance consists of NAOS Formation and NAOS Galaxy.

NAOS Formation

NAOS Formation is a synthetic asset protocol backed by future earnings, with three components: Vault, Transmuter, and Staking Pool.

1.Vault: Vault is a module used to cash out future earnings in the form of loans. After depositing DAI into a vault, users can earn future gains in the form of a synthetic stable currency, nUSD. The mortgage ratio is currently 200%, meaning that users can lend up to half of the value of the collateral in nUSD. The collateral will be pledged on Yearyear. finance for the proceeds of mining, which will be used to repay users' debts. On this basis, the user can withdraw part of the deposit or borrow more nUSD to maintain the mortgage rate. As of November 4, 2021, the annualized mining yield is 6.76%, while the value of the synthesized nUSD has exceeded $9 million.

2.Transmuter: Conversion tokens are a module for users to gradually convert nUSD to DAI when they borrow nUSD from NAOS Formation. These DAIs can be used to pay off debt. Users can also withdraw the remaining unconverted nUSD and converted DAI at any time.

3.Staking Pool: NAOS Finance has five pledge pools on Ethereum and BSC to attract liquidity for NAOS and nUSD, Including NAOS single currency pledge pool, NAOS/ETH LP pledge pool, NAOS/ETH SLP pledge pool, nUSD/3CRV pledge pool, and NAOS/BNB LP pledge pool. Liquidity mining incentives will be returned to liquidity providers in the form of project tokens NAOS.

NAOS Galaxy

NAOS Galaxy is a lending agreement based on real assets, consisting of a pool of loans to make loans (the "Alpha pool") and a pool of insurance funds to pay losses from the lending pool (the "Beta pool"). Alpha Pool accepts stabecin inputs and users need to pass KYC to become a liquidity provider (LP) in Alpha Pool. The Beta pool has no KYC requirement and only accepts nUSD. As compensation for the risk taken, Beta pool LP will receive higher returns. If the borrower defaults on its debt or its loan is liquidated, the Beta Pool will pay the principal loss of Alpha Pool LP in nUSD, while the Beta Pool LP's principal of stablesoin deposited with Formation will not be affected and can continue to earn income to repay the nUSD loan.

As of November 4, 2021, NAOS Formation is stable on Ethereum and BSC networks, and its V2 version is expected to be reviewed by the end of November. NAOS Galaxy is still in beta and is expected to go live by the end of November.