Building up the world’s first independent flatcoin protocol to greater and greater heights
Nuon is the first independent flatcoin—a digital asset that is pegged to the cost of living rather than fiat. As inflation depreciates the value of every fiat-based currency, the purchasing power of Nuon remains flat. Read our recent blog post to learn all about Nuon and how it can help anyone hedge against inflation.
Goals of the Nuon Protocol
One of the Nuon Protocol’s primary goals is to see Nuon become the currency of choice for use in decentralized finance (DeFi). Because Nuon’s price rises at the same rate as inflation, it is an extremely capital efficient currency to use as collateral on other DeFi protocols. Compared to other volatile cryptocurrencies, it is reassuringly easy to predict Nuon’s price changes — anyone can check the Truflation dashboard to see the daily inflation rate Nuon is pegged to at any time — and its quadruple peg redundancy mechanism ensures that Nuon’s value is never lost.
Nuon’s purchasing power retention is one of its other primary strengths, which makes it a great currency to use for retail payments. Owing to this, building out Nuon integrations in the retail and hybrid finance (HyFi) sectors is another goal of the Nuon Protocol. We imagine a world where the money you own can buy the same amount of goods today and ten years from now — and Nuon can make that a reality.
The Go-to-Market Plan for Nuon
The Nuon Protocol’s go-to-market plan over the next 12 months will focus on two core target audiences: Minters and Buyers. Minters are people who supply collateral on the Nuon Protocol to mint Nuon, and they will be responsible for generating Nuon liquidity. Buyers are people who buy Nuon on the market and accelerate adoption and demand. Any person with a crypto wallet or a financial app on their smartphone can be a prospective Nuon Buyer.
Read on to learn about the growth strategy the Nuon Procol is implementing to target these audiences and see our ambitions come to fruition.
Step 1. Drive Testnet Participation (Minters)
The Nuon testnet officially launched on September 28, 2022. Prior to launching on the mainnet, we need as many people as possible to give the Nuon testnet a serious workout, which we are incentivizing through gamification and competition. We are also working hard to attract testnet participants through social media growth hacking, advertising, community management, partnership announcements, AMAs and influencer outreach.
The Nuon Protocol’s largest current incentive for testnet participants is a series of Nuon Testnet Campaign events that reward participants with Online Achievement Tokens and NFTs. Our first event just finished up — come and join us for our next one!
Step 2. Attract Minters to the Nuon Protocol
Nuon flatcoins can only be minted on the Nuon Protocol. People who want to participate in building liquidity for the first inflation-shielded flatcoin can mint Nuon by depositing crypto as collateral on app.nuon.fi.
We are targeting a wide range of people as potential Minters on the Nuon Protocol: institutional investors, crypto whales, market makers and “DeFi Degens” will all benefit from minting Nuon. Blockchain and crypto foundation treasuries are another top target audience, as inflation protection without selling pressure for their stablecoin holdings is highly beneficial for them.
A number of incentives have been arranged to making minting Nuon worth their while:
How the Nuon Protocol Benefits Minters
In version 1 of the protocol, Minters will receive an amount of nuMINT governance tokens proportional to the Nuon they mint. When nuMINT is staked on the protocol, holders will be able to participate in governance and earn a portion of the protocol fees.
This incentive alone makes Nuon a solid investment — and there are also a number of other ways Minters can benefit, including accelerated position leveraging and arbitrage. Minters will also earn yield by participating in Curve and Convex liquidity pools with both Nuon and collateral assets. Nuon has already initiated and agreed on pool partnerships with other stablecoin providers.
The Nuon Protocol will also be a market maker, and is developing open source code based on Hummingbot to automate profit generation. In version two of the Nuon Protocol, minters will be able to earn direct income from protocol arbitrage by staking their entire position as a dynamic NFT.
Check out this short video to learn more about how Minters can benefit from depositing collateral on the Nuon Protocol:
Step 3. Build Liquidity (Minters)
The most important step to see Nuon embraced as a DeFi currency of choice is to build up liquidity on both centralized and decentralized exchanges. To this end, the Nuon Protocol is busy setting up partnerships with both CeFi and DeFi protocols.
Step 4. Motivate HyFi Sector to Buy, Use and Accept Stablecoins
We want Nuon to be usable in the retail sector, and for that to happen there needs to be more adoption in the HyFi sector. To make this happen, we are in the process of negotiating partnerships with ecommerce sites and retail companies to encourage the adoption of flatcoins, stablecoins and other forms of crypto assets for quick and easy POS crypto payments. We are also in talks with crypto wallets and CeFi sites to create fiat on/off-ramp integrations.
Geography-wise, we are prioritizing crypto-savvy high-inflation countries for adoption opportunities. Companies from such regions will be quick to see the benefit of an alternative inflation hedge based on the US cost of living.
Step 5. Attract Buyers to Use Nuon
Marketing and promotions are our primary strategy to bring in Buyers. Once enough liquidity has been generated, it will not be difficult to attract Buyers looking to purchase Nuon as an inflation hedge. HyFi use cases will further create more utility for Buyers to look forward to. We also aim to further develop the Nuon Protocol to create a full financial ecosystem in one app with services for both Minters and Buyers.
The above growth strategy should ensure that Nuon quickly becomes a known and trusted asset used across DeFi and Hyfi, by both Minters as an excellent yield opportunity and by Buyers as an inflation hedge and medium of exchange.
For more information and all the latest updates about Nuon, visit our website and engage with us on Twitter or Telegram.