Nuon Protocol

Want to protect your purchasing power? Stablecoins suffer from fiat inflation and market volatility means risk. What's needed is a stablecoin pegged to inflation. NuonFinance launched last week on Arbitrum is exactly that. Nuon is what's called a decentralised flat coin, meaning that its value tracks the cost of living instead of an asset.

Its value will ALWAYS be the same in terms of cost of living. If a gallon of milk costs you today 1 $NUON it will cost you the same 1 $NUON in 20 years.

To track the cost of living Nuon doesn't use the CPI as it's biased. Instead, it uses Truflation for an unbiased and realistic inflation calculation. Go down the inflation rabbit hole.

If you're wondering why the CPI-measured #inflation might seem a little low in the US at 8.3%, here is a guest post from an excellent #fintwit educator, @zestyblockchain. He explains it in a really clear way.

👉Give the guy a follow @zestyblockchain https://t.co/BMLLhCjtmn pic.twitter.com/v5f4ZfGoit

— Truflation (@truflation) June 1, 2022

To maintain its peg and decentralised nature, Nuon uses exogenous over-collateralisation. Meaning that the assets backing NUON are not native to the protocol and the collateral ratio will always be more than 100%.

You can borrow Nuon at 0% interest. Deposit some ETH or other collateral tokens and you'll get NUON and your purchasing power will be protected. Chances are that in the country you live in, inflation is a big topic. Nuon is a novel way to hedge against inflation and protect your purchasing power.

The Nuon team is young and ambitious and closely related to Truflation’s team, sharing the CEO Stafan Rust.

This thread was originally published on February 6th 2023.
Find more on Nuon’s website and Twitter.