Overview

A Web3 Financial Toolkit Presenting a Fresh Take on Money Markets

Nolus Protocol is a Web3 financial suite that offers an innovative approach to money markets with a novel lease solution to develop the DeFi space further. The Nolus DeFi Lease unlocks the full potential of crypto money markets by reducing the industry's steep over-collateralization requirements, resulting in significantly improved capital efficiency and more favourable lending options for users. The Nolus DeFi Lease provides up to 150% financing on the initial investment with a lowered margin call risk and access to the underlying leveraged assets through whitelisted yield-bearing strategies.

The protocol utilizes a semi-permissioned PoS blockchain built using the Cosmos SDK and a WASM smart contract engine focusing on interoperability, security, and performance.

Interoperability is at the core of Nolus' offering as the Protocol utilizes IBC and Interchain Accounts to tap into a diverse set of liquidity hubs without creating fragmentation across chains.

The DeFi Lease defines a money market between a lender looking to earn a yield on stablecoins, and a borrower, looking to borrow more digital assets than his current equity. To borrow assets, the borrower locks up a downpayment as collateral and can leverage his holdings up to 3 times in a preferred digital asset.

Nolus sources its deposit yields from the interest-bearing DeFi Leases and incentivizes lenders with additional rewards above the initially agreed interest by releasing NLS tokens from the Incentivization Pool.

The never-changing fixed borrower terms of interest throughout the lease contract provide predictability for future cash flows and reward distributions toward lenders. The cumulative profits of the protocol lease contracts, swap spreads, and tx fees are used to purchase back NLS tokens from the open market, thus driving price appreciation of the token.

The Incentives pool account incentives will attract capital during the early stages of development and decrease proportionally when the protocol’s Total Value Locked (TVL) grows to certain thresholds.