NAOS Finance (NAOS) facilitates DeFi lenders and SME borrowers to allow both parties to interact in a permission-less manner on the blockchain. We enable the origination and funding of loans without traditional intermediaries. NAOS Finance provides lenders with stable and recurring income streams while also connecting the on-chain world with much bigger off-chain opportunities. Ultimately, our goal is to fully automate the tokenization of real-world assets and make them available as part of the end-to-end lending process through NAOS Finance. What is NAOS Finance (NAOS) | What is NAOS Finance token | What is NAOS token
In this article, we'll discuss information about the NAOS Finance project and NAOS token
NAOS Finance facilitates DeFi lenders and SME borrowers to allow both parties to interact in a permission-less manner on the blockchain. We enable the origination and funding of loans without traditional intermediaries. NAOS Finance provides lenders with stable and recurring income streams while also connecting the on-chain world with much bigger off-chain opportunities. Ultimately, our goal is to fully automate the tokenization of real-world assets and make them available as part of the end-to-end lending process through NAOS Finance.
Wow, what a week it has been! The stock market decided that this would be a great week to take a walk on the wild side and gave us not one, but two all-time sagas to go down in history.
For the uninitiated, Redditors decided to take matters into their own hand and beat the hedge funds in their own market manipulation ways. Here’s a quick primer for all those that are interested. The craziness that we all saw this week has only added more fuel to the fire on the importance of decentralizing the financial world and taking authority away from traditional governing bodies(eg. Banks and government).
So that begs the question — how could decentralize finance have helped the situation? Well, before we fully dive into that, let us do a quick review on just what is finance in the first place?
According to Wikipedia, [_finance_] deals with the questions of how and why an individual, company or government acquires the money needed — called capital in the company context — and how they spend or invest that money. From the government standpoint, gold has been traditionally been the peg that tied finance together as a determinant of value. Those that are involved in the finance industry are entities which deal in the circulation and price negotiation of money, usually led by banks, securities or insurance companies. In simpler terms, finance is all activities that involve currencies, financial assets with their accompanied behaviors.
Typically these financial behaviors are provided through large scale, heavily centralized institutions approved by governments. As such, they are permitted to provide capital lending, currency, equity and the delivery of asset transactions and derivatives. Most popularly, banks are usually the ones that provide all the services listed above.
But as entities are beholden to the government, they are tied to strict adherence to rules and regulations set forth by biased parties. In comparison, the world of decentralized finance can provide much of the same services including lending, transactions, and a robust derivatives market further buoyed by differences in three key areas: participation, governance and distribution.
Financial transactions in DeFi are not dependent on any intermediary to facilitate the “matching” of two parties in order to transact. Rather, counter parties come together based on trust and reputation all activities are accessible on a public ledger. The nature of decentralization and smart contracts allows for interested parties to conduct transactions at any time of day, whether it be on a weekend, weeknight or when the kids are asleep. Applications built on decentralized protocols aggregate a wide range of resources without the need for third party intermediaries to conduct credit endorsements, lessening the restrictions and influence as a result of credit bureaus. In comparison, most traditional lending still requires centralized institutions to carry out banking services such as lending of monetary funds, debt and equity investments, financing through securities firms and investment services. One could argue that centralized institutions were created to protect the common folk, but we’ve seen them become vehicles to prohibit participation from a wider user base, as was the case with Robinhood.
In traditional finance, we rely on an authoritative institution to approve actions and monitor for “do no evil” situations in order to preserve the credibility of the overall market. In DeFi, the market is open source and DAO(decentralized autonomous organizations) driven, represented by code that is transparent, controlled by the organization members and not influenced by a central government. As smart contracts are immutable, they are immune to corruption and bias as so many centralized institutions have become. Relevant governance systems and finance can be inquired through public information as to protect the rights and interests of decentralized participants.
Most financial intermediaries are setup for the purpose of making profits and operate with the mantra of maximizing shareholder value. Only investors or the operators of these intermediaries are able to obtain the outsized returns that are promised. Whereas the rest of us are only given 0.5% APR yields in a savings account. Pretty raw deal if you ask me.
In DeFi, the distribution of benefits and community governance are based on holders of tokens, which are open to individuals of all investment profiles and appetite. These tokens grant access and allow for participation in returns that are generated from multiple avenues of a protocol’s lifecycle. Whereas in traditional finance, entry into investments vary widely based on an individual’s net worth(accredited investing), network(hedge fund) and access(Robinhood’s decision to halt trading of GameStop stocks).
It is fair to think that the GameStop and Robinhood saga serves as a first sign that the free market isn’t as free as we once thought. A strong and unified community has demonstrated that they can impact and move entire markets, whereas powers that be, only want to take that capability away. Trustless and permissionless communities are the wave of the future and we at NAOS Finance seek to be at the epicenter of this movement.
We believe in easy and immutable access to assets of all profiles, risks and sizes. Allowing investors from all facets of the world to participate in however they want.
At NAOS Finance, we are placing our bets that we can be the team to incentivize users from traditional institutions to join DeFi. By tokenizing high quality real world assets that are safe, secure and fully insured, our team is focused on easing the high technical cost of entry for institutions, corporations and users alike. Ultimately our goal is to allow off-chain asset originators to easily bring their loan requests to the community and enable crypto lenders to fund these requests by offering attractive guaranteed yields. There’s more to come as we are working our way to launch.
Goal at NAOS
We do think that the combination of DeFi’s immense promise of no vertical authority, community democracy and transparency will be keys to the success of future(and our) project. When these DeFi keys are married with the security measures and the understanding of customer-first experiences from CeFi, only then will large scale adoption of DeFi will happen.
At NAOS we are creating a truly democratized marketplace in which we are connecting needy SMEs with access to on-chain liquidity. Our hope is that our project will generate innovation and promote societal growth by leveraging the immense potential of DeFi with traditional CeFi experiences.About NAOS Finance
Yield Protocol has a derivative token called fyToken that functions similarly to a zero-coupon bond and can be exchanged with Dai on a 1:1 basis. However, the price of fyDai will be lower than Dai until it reaches maturity.
Because of this, borrowers can choose to use ETH as collateral to generate fyDai. Since the price of fyDai is generally lower than the price of Dai, lenders will buy more fyDai with a single Dai. Borrowers can loan Dai by collateralizing ETH. The lender can then exchange fyDai back to Dai to earn more than the principal after maturity is reached. For lenders, this difference between fyDai and Dai is their source of income.
Similar in concept to Yield Protocol, Notional allows both lenders and borrowers to choose from three different borrowing cycles. The longer the borrowing cycles, the higher the corresponding interest rate. Instead of fyDai, Notional introduced their own derivative token called fCash, which operates similarly as FyToken — both can redeem a corresponding amount of original tokens after expiration.
88mph positions itself as “a protocol that allows users to lend their crypto assets such as AaveUSDC, yUSD, and other yield-bearing assets at a fixed interest rate with infinite liquidity.” Currently, 88mph supports a library of tokens including USDC, UNI, yCRV, crvSBTC and many more. The protocol puts tokens provided by users into DeFi products such as Compound, Aave, and Yearn to earn floating income, through aggregation of fund pools, and income bonds. This in-depth design ensures users can generate a stable income even when floating interest rates fall sharply.
Users can deposit funds into corresponding pools with redemption cycles ranging from 7 to 365 days. The fixed interest rate of each pool is prominently shown to the user through the 88mph UI. After depositing the funds, users will receive an ERC-721 based NFT token that corresponds to their rights and interest. This NFT token can be transferred to other accounts or sold directly on markets such as OpenSea. When the loan expires, users can get back their principal along with the interested based on the fixed interest rate.
NAOS Finance, unlike pure crypto-native protocols, tokenizes high quality real-world assets with steady income streams. NAOS Finance utilizes a senior/junior tranche design to differentiate risk-return profiles. Lenders in the senior tranche receive fixed and guaranteed interest, whereas the junior tranche provides a much higher upside on the variable interest catering for appetite of the traditional DeFi community.
Let’s illustrate this in a scenario. Assume the entire asset pool is $1M and it is generating 12% APY.
The pool is then divided into a senior tranche (80% or $800K) with 5% fixed interest and a junior tranche (20% or $200K) with variable interest.
When the asset pool reaches maturity:
Total Pool Returns: $1M x 12% = $120K interest generated
Senior tranche: $800K x 5% = $40K fixed interest allocated to the lenders
Junior tranche: $120K — $40K = $80K interest allocated to the lenders
In this case, the return on junior tranche represents a whopping 40% return! ($80K / $200K = 0.4)
In our model, the more conservative investors can lock in the fixed yield with the senior tranche, whereas the more adventurous investors can choose to take part in the junior tranche for greater rewards!
NAOS token is now live on the Ethereum mainnet. The token address for NAOS is 0x4a615bb7166210cce20e6642a6f8fb5d4d044496. Be cautious not to purchase any other token with a smart contract different from this one (as this can be easily faked). We strongly advise to be vigilant and stay safe throughout the launch. Don’t let the excitement get the best of you.
Just be sure you have enough ETH in your wallet to cover the transaction fees.
You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)...
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)...
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
You need a wallet address to Connect to Uniswap Decentralized Exchange, we use Metamask wallet
If you don't have a Metamask wallet, read this article and follow the steps
Transfer $ETH to your new Metamask wallet from your existing wallet
Connect Metamask wallet to Uniswap Decentralized Exchange and Buy, Swap NAOS token
The top exchange for trading in NAOS token is currently Uniswap (V2), LBank, Bilaxy, 1inch Exchange, and DODO
Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once NAOS gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!
Top exchanges for token-coin trading. Follow instructions and make unlimited money
Find more information NAOS
🔺DISCLAIMER: The Information in the post isn't financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.
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