Nolus Protocol is a standout player in the DeFi sector, reshaping the money market landscape through DeFi leasing. Leasing involves two main parties: lenders who are looking to earn a yield on their stablecoins and borrowers who wish to secure more digital assets than their current equity allows.
This allows the lessees to utilize these assets for various financial activities, such as trading or liquid staking, while the lessors earn passive income from the leasing fees. It’s a win-win situation that enhances liquidity and fosters growth in the DeFi ecosystem.
Here’s where it gets technical, but stick with us. The Nolus Protocol runs on a PoS Layer-1 blockchain built using the Cosmos SDK. It uses smart contracts developed in Rust, which are executed within an isolated sandboxing model by CosmWasm. This means it’s super secure and compatible with multiple chains. Pretty cool, right?
Nolus Protocol’s Vision
Nolus is driven by a vision to create a safe, reliable, and user-friendly environment for DeFi to flourish within the Cosmos ecosystem. The ultimate goal is to bridge the gap between the pioneering DeFi adopters and the untapped mainstream market, thereby expanding the reach and impact of DeFi.
Furthermore, security is a paramount concern for Nolus. Users need to trust that their investments are secure, and they need products that feel familiar and intuitive. To this end, every service that Nolus integrates aligns with the vision of creating the most substantial value for the user, ensuring a seamless and secure user experience.
Key Features of Nolus Protocol
The Nolus Protocol stands out with its array of innovative features:
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DeFi Lease
The DeFi Lease is a unique feature that allows users to secure a larger quantity of a desired digital asset than their current balance permits. It’s a concept similar to a “buy now, pay later” scheme, but it’s specifically tailored for the DeFi space. This feature provides users with the ability to leverage their assets more effectively, opening up new opportunities for investment and growth.
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Financing
Nolus offers financing up to 150% on the initial investment. This is a significant advantage, providing users with greater financial flexibility. It allows users to make larger investments and potentially reap larger rewards, all while managing their risk effectively.
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Lower Liquidation Rates
The platform boasts 40% lower liquidation rates than the market average. This feature reduces the risk for users, providing a safer environment for investments. It means that users can invest with confidence, knowing that they have a lower risk of liquidation.
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Low Costs
One of the key advantages of the Nolus Protocol is its low financing and transaction costs. By keeping costs low, Nolus makes DeFi more accessible and affordable. This opens up the world of DeFi to a larger user base, democratizing access to these powerful financial tools.
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Asset Ownership
Users retain ownership of their assets when using the Nolus Protocol. This adds an extra layer of security and control for users. It means that users can invest and trade with the confidence that they retain control over their assets, providing peace of mind and promoting trust in the platform.
What is Nolus (NLS) Token?
The Nolus (NLS) token is the lifeblood of the Nolus Protocol, a Proof-of-Stake (PoS) blockchain solution built using the Cosmos SDK. This token isn’t just a digital asset; it’s the fuel that keeps the Nolus ecosystem running smoothly. Let’s break down how it works.
Key Roles of the NLS Token
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Transaction and Network Fees: NLS is used to pay transaction and network fees to validators. This keeps the network running smoothly and efficiently.
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Governance: NLS holders have a say in the network’s future. They can vote on proposals, such as protocol upgrades, giving them a direct influence on the network’s direction.
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Incentive Rewards: Validators who secure the network and validate on-chain transactions are rewarded with NLS. This incentivizes them to keep the network secure and efficient.
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Community Staking Rewards: NLS is also used to reward community members who contribute positively to the ecosystem. This helps foster a strong, engaged community.
Token Distribution and Supply
The maximum supply for NLS tokens is capped at 1 billion. To reach this, 15% of the total supply (150 million NLS tokens) will be minted over the next 10 years. These tokens will be used to reward the network’s validators and delegators. The NLS token is pegged on specific outcomes – security, longevity, decentralization, and economic growth, ensuring a self-sustainable token economy.
Staking Incentives with NLS
The Nolus ecosystem uses the NLS token to support the network’s staking incentivization mechanism. This program rewards holders who lock their tokens, contributing to the network’s growth and longevity. Here’s how it works:
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Staking Revenue: Part of the revenue generated from interest-based DeFi Lease contracts is used to buy back the native tokens from the open market. These tokens are then added to the Nolus Incentives Pool and used for delegator reward payouts.
Furthermore, Nolus is also planning to implement more innovative staking incentives inspired by DeFi (Decentralized Finance) principles:
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Adjusted DeFi Lease Interest: This concept aims to motivate holders to lock their tokens for longer periods, as the interest rates for DeFi lease positions will be dynamically determined based on the staking period. The longer the staking period, the lower the interest rates. This could potentially increase the token value by reducing the supply in circulation.
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Delegators Tiered APR Incentive: This feature is designed to incentivize users to acquire and stake more NLS tokens. The incentive scheme is such that as the number of users grows, the total value locked within the protocol, and consequently the value of the NLS token, is expected to increase.
In a nutshell, the NLS token is a key component of the Nolus Protocol, serving multiple roles and driving the growth and success of the ecosystem.
What is Staking?
In simple terms, staking involves participants, known as validators, locking up a certain amount of their cryptocurrency in the network as their “stake”. This process is akin to putting down a deposit, which gives the validators the right to validate transactions, add new blocks to the blockchain, and maintain the network’s overall security and integrity.
Staking is an attractive option for NLS holders because it allows them to earn rewards. These rewards come in the form of additional NLS, which is distributed to validators as compensation for their work in maintaining the network. The specific reward mechanisms for individual stakers can vary from one blockchain to another.
Benefits of staking NLS
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Inflation Emissions: Nolus Protocol incentivizes staking by emitting inflation to stakers. This means that by staking NLS tokens, users can earn additional tokens as a reward, thereby increasing their holdings over time.
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Transaction Fee Rewards: Stakers also benefit from a larger share of the transaction fees in the network. This provides an additional source of income for those who stake their NLS tokens.
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Access to DeFi Lease Product: Staking NLS tokens grants users additional perks when they participate in the protocol’s flagship DeFi Lease product. This includes benefits such as reduced interest rates and special down payment options.
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Boosted Yields for Lenders: Lenders who stake NLS tokens can enjoy boosted yields. The more NLS tokens a user stakes, the higher the potential yield they can earn.
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Security and Network Participation: Staking NLS tokens also helps secure the Nolus network. Stakers delegate their tokens to validators who help secure the network, and in return, they earn NLS rewards. This process also allows stakers to participate in the network’s governance, giving them a say in the future development of the protocol.
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Potential for Value Appreciation: As the Nolus Protocol grows and attracts more users, the demand for NLS tokens could increase. This could potentially lead to an appreciation in the value of NLS tokens, benefiting those who stake their tokens.
How to Stake NLS Token?
Staking NLS tokens is a simple and rewarding process that allows you to earn passive income while contributing to the security and efficiency of the Nolus blockchain. Here’s a general step-by-step guide on how to stake your NLS tokens.
Connect to a platform that supports NLS token staking
The first step to staking your NLS tokens is to connect to a platform that supports NLS token staking. There are several platforms available, including the Nolus App, Nolus Explorer, Kujira, and Leap Wallet. These platforms provide a user-friendly interface and tools for managing your staking activities.
For a detailed walkthrough on how to stake NLS tokens using Nolus Explorer, check out our comprehensive guide on “How to stake NLS via Nolus App & Explorer.” This guide provides step-by-step instructions and helpful tips to make your staking process as smooth as possible.
Expect a reward of ~15.8% APR
By staking your NLS tokens, you can expect to earn a reward of approximately 15.8% APR. This reward is distributed proportionally to the amount of tokens you have staked. Keep in mind that while staking can be profitable, it also comes with risks, such as the potential for your tokens to be slashed if the validator you’ve chosen behaves maliciously or incompetently.
Nolus App
Nolus App is a platform designed to bring DeFi to the mainstream, aiming to onboard millions of users onto Web3. The app provides a platform for staking digital assets, voting on proposals, and accessing DeFi Lease services.
To ensure the safety of users’ funds, the app employs a range of proactive mitigation measures. These include:
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Smart Contract Integrity: The app uses smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. This ensures that transactions are trackable and irreversible, providing a secure framework for users.
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Liquidity Longevity: The app ensures that there is sufficient liquidity for the long term. This is crucial in DeFi applications as it allows users to enter and exit positions easily.
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Avoiding Insolvency: The app has measures in place to avoid insolvency. This is important as it ensures that the platform can meet its obligations and continue to operate effectively.
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Prudent Loan Liquidation Management: The app manages loan liquidations prudently. This involves carefully monitoring loans and managing risks to prevent losses.
Nolus App is designed with a focus on reliability and security, aiming to provide a secure and user-friendly platform for users to engage with DeFi services.
What is Leasing?
Leasing in the context of the Nolus Protocol refers to a process where users can lend their digital assets to others in the decentralized finance space.
How Does Leasing Work in the Nolus Protocol?
The leasing process in the Nolus Protocol is quite straightforward. Here’s how it works:
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Borrowers Provide a Down Payment: To start the leasing process, borrowers are required to provide a down payment. They can then leverage this down payment up to 150%.
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Nolus Protocol Provides the Loan: The loan is provided by the Nolus Protocol using the funds it has acquired from lenders, who typically provide liquidity in the form of stablecoins.
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Opening a DeFi Lease: When a borrower opens a DeFi lease, the protocol provides a loan and locks it in a smart contract, along with the borrower’s down payment. This increases the borrower’s exposure by up to three times, reducing their margin call risk to the average market rate.
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Interest Rates: The borrower pays an interest rate that depends on the utilization level of the funds within the protocol. While most interest rates typically vary between 12% and 18% APR, the percentage that lenders pay is fixed once the DeFi lease position is opened and never changes along the way. This allows lenders to earn reliable and consistent yields for a predictable cash flow in the future.
How Do Lenders Earn in the Nolus Protocol?
So, you’re a lender in the Nolus Protocol. What’s in it for you? Well, you get to earn actual yield rewards. These rewards are typically collected after a certain period that you and the borrower agree upon.
The rewards are automatically deducted from the active DeFi lease positions. Think of these positions as the collateral that was originally locked in a smart contract. You then receive the accumulated interest, which is handed out to you through smart contracts.
But wait, there’s more! As a lender, you also get rewarded with NLS tokens. These tokens come from an incentive pool that holds 12% of the token’s total supply. However, the rate at which these rewards are distributed is tied to the potential growth of the protocol. It starts from a high ARP and gradually declines as the total value locked in the protocol increases.
So, in a nutshell, being a lender in the Nolus Protocol is a pretty good deal. It’s a unique opportunity that allows you to maximize your potential returns in the DeFi space.
The Nolus Team
The Nolus Protocol is brought to life by a team of dedicated and experienced professionals. Let’s get to know them:
Co-Founders
Ivan Kostov: Ivan is not just a co-founder; he’s also in charge of product development. He’s the one who turns the team’s innovative ideas into reality.
Kamen Trendafilov: Kamen, another co-founder, takes the lead on finance. He ensures that the financial aspects of the Nolus Protocol are running smoothly.
Key Team Members
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Metodi Manov: Metodi is responsible for the infrastructure, technical documentation, and governance within the organization.
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Gancho Manev: As the Technology Team Lead, Gancho ensures that the technical aspects of the Nolus Protocol are top-notch.
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Bilyana Christova: As the lead for Marketing and Business Development, she plays a crucial role in promoting the protocol and exploring new opportunities for growth.
Advisors
The Nolus Protocol also benefits from the guidance of experienced advisors:
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Zaki Manian: Co-Founder of Sommelier Protocol, Co-Founder of Iqlusion.
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Sebastien Couture: Co-Founder at Interop Ventures.
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Jack Zampolin and Tyler Schmidt: Strangelove Ventures.
This dynamic team, with its diverse skills and experiences, is what makes the Nolus Protocol a game-changer in the DeFi space.
The Takeaway
The Nolus Protocol is revolutionizing the DeFi space by borrowing strategies from traditional finance and making them accessible to users of all levels. Whether you’re a crypto novice or an experienced trader, Nolus makes it easy to get started. As a borrower, you can access up to 150% financing on your initial investment while retaining full ownership of your digital assets. But it’s not just about borrowing — as an investor, Nolus provides a secure protocol where you can provide liquidity and generate passive income.
Ready to start your staking journey? Take the first step by visiting the Nolus page on Everstake to explore more about NLS token staking. With Everstake, staking NLS tokens is secure, efficient, and rewarding. Everstake is a trusted, rapidly growing validator that allows you to stake on over 70 of the most promising blockchains in under a minute.
By staking with Everstake, you can accrue yield while contributing to the operation of the backbone of tomorrow’s Web3 future.
To stay up-to-date with the latest developments, you can follow Nolus on Twitter, Telegram, and Discord. For more detailed information, check out their whitepaper and documentation on the official Nolus website.
Remember, the world of DeFi is evolving rapidly, and platforms like Nolus are leading the charge. So why wait? Start earning rewards today!
