Starknet is a distinctive Layer two answer on Ethereum and Nostra Finance is a single of the to start with tasks constructed on the Starknet ecosystem. So what is Nostra Finance? Let’s study about the liquidity degree undertaking with Coinlive via this short article!
What is Nostra Finance? Special capabilities of the liquidity degree on Starknet
What is Nostra Finance?
Nostra Finance is a distinctive DeFi item constructed on Starknet, a single of the rising layer-2s on Ethereum. With the vision and primary goal of marketing the advancement of the DeFi ecosystem, Nostra Finance has played an critical purpose as a liquidity layer in the Starknet ecosystem.
Nostra Finance’s purpose is not merely that of a DeFi platform but also an critical portion of Starknet’s general advancement. The DeFi ecosystem is getting more and more critical in the blockchain cryptocurrency area, and Nostra Finance is committed to guaranteeing that customers on Starknet can knowledge decentralized economic applications simply and securely.
Characteristics of Our Finance
DeFi on Starknet: Nostra Finance operates on the Starknet network, assisting to lessen the load on Ethereum and maximize transaction functionality.
Loans and loans: Users can borrow UNO, the platform’s stablecoin, by staking crypto assets as collateral. This aids fulfill individual or enterprise economic functions.
UN statement: Users can challenge UNO stablecoins with collateral, each and every UNO is pegged to collateral and has a fixed USD worth.
Liquidity and trading: UN is listed on trusted exchanges on Starknet, facilitating liquidity and quickly trading.
Mortgage and chance management: Nostra Finance presents a crypto asset ensure attribute and customers should sustain a acceptable well being index to prevent liquidation.
Loan and settlement costs: Nostra Finance collects costs from customers based mostly on an integrated model, which includes lending costs and settlement costs.
It supports quite a few functions: ONU has a range of use situations, which includes participation in the DeFi ecosystem, payments in the genuine economic climate, and help for crypto applications and video games.
Assets and liabilities are tokenized
When you deposit tokens into the lending pool on Lend, you will acquire Nostra iTokens, which are curiosity-bearing ERC20 tokens. When borrowers repay the debt with curiosity, the volume of assets in the loan pool increases and consequently the quantity of Nostra iTokens also increases.
There are a complete of four styles of tokenized asset positions:
- Our iToken-c: You get Nostra iToken-c when you lend your tokens, then you will acquire curiosity on them. This token can be utilized as collateral to borrow other assets.
- Nostra-c Token: You acquire Nostra Token-c when you do not lend out your tokens, so you do not acquire curiosity on them. This token can be utilized as collateral to borrow other assets.
- Our iToken: You get Nostra iToken when you lend your tokens, then you will acquire curiosity on them. This token are unable to be utilized as collateral to borrow other assets.
- Nostra Token: You acquire Nostra Token when you do not borrow your tokens, so you do not acquire curiosity on them. This token are unable to be utilized as collateral to borrow other assets.
Note: You can allow crypto collateral for any deposit token at any time you want, and when you do, you will acquire new tokens. Nostra iToken gets Nostra iToken-c and Nostra Tokens gets Nostra Token-c.
Debt positions are tokenized
Lending also tokenizes debt positions. These tokens are identified as ERC20 Our dToken represents the borrower’s debt and is issued to the consumer when he opens a debt place.
Similar to tokenized asset positions, the way Nostra dToken functions requires debt convertibility. Due to the nature of Nostra dTokens relating to debtor liability, they can only be transferred when a unique set of circumstances are met this kind of as:
- Consent of the recipient
- Compatible with recipient’s account
- Financial well being index.
The convertibility of a debt place lets the liquidator to execute a liquidation devoid of obtaining to look for liquidity in the debt token at the similar time.
How to deal with undertaking dangers
Protocols generally apply two primary patterns for the lending pool model: shared pools (this kind of as Aave and Compound) and isolated pools (this kind of as Kashi and Rari).
Nostra Finance’s loan model has a unique style and design. It lets highest versatility and adaptability to each asset courses, so that customers with unique chance appetites can entry ideal lending and borrowing positions.
Nostra has constructed an state-of-the-art chance management process to be certain the sustainability and protection of the Lend process this kind of as:
– Multiple account: In addition to the primary account, Nostra Money Market customers can entry up to 255 accounts on Starknet each time they want to open lending and borrowing positions.
For instance: Users who want to borrow SHIB, ETH and BTC at the similar time will have to use two unique accounts due to the fact SHIB is a unique classified asset.
– Protocol reservation: Nostra maintains a capital reserve to be certain availability to pay out in the worst attainable situation. This aids guard customers from prospective dangers.
– Activity classification: Our classifies unique styles of loans and lending pursuits and applies loan and lending quotas. This aids handle chance by limiting the dimension of unique markets.
– Supply and loan quotas: The process establishes bidding and lending quotas to be certain liquidity and dependability. Users can only borrow and present in accordance to predetermined quotas.
Support Nostra Money Market flash loan. Flash loans are a model comparable to common loans, but vary in quite a few facets:
Smart contracts: Flash loans are programmed into wise contracts with the rule that the borrower should repay the loan prior to the transaction is concluded otherwise, the wise contract will cancel the transaction.
Unsecured loan: Unlike common DeFi loans, flash loans do not call for borrowers to present collateral. This lack of collateral does not indicate that flash loan lenders will not recover their income. Instead, the borrower should pay out instantly.
Immediate: Flash loans are immediate and the wise contract for the loan should be executed in the similar transaction as it is issued to the borrower. This implies that the borrower should invoke other wise contracts to execute immediate transactions with the borrowed capital prior to the transaction ends.
The primary employs of flash loans on Nostra Finance consist of:
Arbitrage: Flash loans can be utilized to get benefit of short-term variations in between unique exchanges.
Collateral Replacement: Sudden alterations in market place circumstances may perhaps spot the borrower at chance of liquidation. To mitigate this chance, borrowers may perhaps be interested in changing current collateral with significantly less volatile and additional steady ones.
Lower transaction costs: Nostra Money Market will not charge any costs to customers for producing flash loans.
The UN is steady currency to start with constructed on Starknet. UN aspires to grow to be the main stablecoin in the Starknet ecosystem.
The UNO stablecoin is pegged to the USD and backed by uncensored tokens.
When you deposit ETH into Lending, it will be converted into iETH-c (equivalent to one ETH) to be utilized as collateral to challenge UNO, giving the advantage of compounding curiosity when making use of UNO stablecoins.
Characteristics of the UN
UN peg model
The chance of anchoring increases: UN’s elevated use situations for transactional lending and borrowing could alleviate some of the elevated anchoring chance.
Reduced anchoring chance: Deep and steady liquidity, additional secured assets and a robust settlement mechanism with accountable parameters will lessen the chance of downside anchoring.
New to earn
The UN is fully backed by curiosity-bearing collateral, which generates income for customers, and lending costs are often reduce than the income produced. Therefore, customers are properly creating an revenue stream making use of the produced UNO stablecoin.
Additionally, the UN does not acquire any minting or redemption costs. Users only want to pay out Starknet fuel costs. This charge framework strongly incentivizes customers to deposit and redeem UNO on demand and aids be certain that the USD peg is maintained devoid of any friction.
a hundred% ensure.
The UN is absolutely backed by collateral with a minimal of a hundred%. Suppose that the Health Factor of the account the place the ONU loan is deposited falls under the specified threshold of one. In this situation, the liquidator will proceed to liquidate the place to be certain the general functionality of the loan mechanism and the ONU mortgage loan.
Uses of the UN stablecoin
Uses of the UN stablecoin
UN aims to grow to be the stablecoin of alternative in the Starknet ecosystem. Stablecoin UNO has lots of applications that can help the advancement of Starknet and applications based mostly on it this kind of as: DeFi, payments and gaming.
Roadmap for advancement
Roadmap for advancement
Mobile application launched
Integrate prepaid credit score cards
Creation of the 2nd Family Hackathon
Investment organizations and advisory teams
Nostra Finance sees the participation of two organizations…