Newly born startups don't necessarily need to have a trillion TVL to find a use case that differentiates them. They can just ship stuff. This is likely the case of @NeriteOrg. Launched in July of this year, its TVL is currently at $7.1M and its circulating stablecoin supply at $2.44M, and growing. The "go slow" slogan intrigued me cause it's the exact opposite of everything else in crypto today. Which actually makes sense, as Nerite’s main product is USND, a @LiquityProtocol V2 fork made in collab with @Superfluid_HQ. This is a streamable stablecoin for easy onchain payments. It can be sent every millisecond, making it a good fit for things like salaries, debt repayments, or subscriptions. --- Architecture It indeed is relatively similar to BOLD, the Liquity V2 stablecoin launched a few months ago. Like that one, USND is also an overcollateralised CDP, with approx 90% LTV at mint (depending on the collateral type). And it's based on troves, which are positions that can be opened with different borrowing rates based on users’ risk factors. But it's not entirely the same thing. There are fundamental aspects that differentiate it, besides being streamable. - Arbitrum Focus Liquity is deployed on the @ethereum mainnet, but Nerite wants to focus solely on @arbitrum. And due to lower transaction costs, they've decided to lower the minimum debt to open a position from $2,000 to $500. - Collateral Expansion Liquity only allows ETH, wstETH, and rETH as collateral. Nerite goes further by adding rsETH, weETH, ARB, COMP, and tBTC. - Governance Delegation One aspect that may go unnoticed is that ARB and COMP are both DAO tokens. They typically cannot be used for voting if placed in a yield product. Instead, Nerite offers the ability to use ARB and COMP as collateral while maintaining their voting power. - Other small updates New auctions that allow the system to earn from price updates (instead of leaving value to MEV), adjustable debt limits that can be set safely with less oversight, slightly increased redemption fees to maintain a stronger peg, updated throttled redemption rate launch parameters, and a lower gas compensation fee. --- Yield USND is natively yield-bearing when deposited in the Stability Pools (there are different Stability Pools based on the chosen yield token and users’ risk appetite). Earnings come from several venues: - 75% of all protocol fees (the remaining 25% goes to incentivize liquidity pools and staking via voting) - 100% of the liquidation fees. - Extra OEV rewards (coming from oracles’ MEV). - A portion of protocol token incentives, retroactively. For now, the average APR for stability pools is 5.45%. --- Distribution And Conclusion @NeriteOrg shows how similar products can still find their own niche in the market. In this case, the aim is to grow USND into one of the flagship stablecoins on @arbitrum, and potentially the leading decentralised one. It stands out for its streamability, designed for users who can benefit from continuous payments. This sets it apart from most stables, which are mainly used for trading. However, imo the use cases and distribution methods aren't over. This is because more venues are needed to scale and increase liquidity around the USND. Integrations with DEXs and money markets will be essential, but for now, Nerite is carving out its own market niche. Thanks largely to @CupOJoseph’s connection with Arbitrum, Liquity’s aligned vision, and Superfluid’s integrated features. It will be interesting to see how the team will find ways to grow and incentivise users, beyond their own future token, to grow USND's adoption, supply and velocity. For now, it's an intriguing experiment. --- @francescoweb3 @rektdiomedes @schizoxbt @0xnoveleader @0xAtomist @0xCheeezzyyyy