⚙️Nome Protocol Mechanics

Introduction to the Mechanics

Nome utilizes an algorithmic stabilization mechanism where $USDbr supply expands/contracts based on market demand. The protocol’s stabilization fund ensures over-collateralization.

Synthetic assets and derivatives were one of the main driving forces in traditional financial markets. Credit and derivatives allowed for the sea exploration, boosting innovation, and growing economies. Our goal is to apply similar objectives with $USDbr algostable and boost Berachain 🐻

Please Note That: $USDbr as the algostable, and $NOME as the protocol token.

That holds true in the crypto economy: perpetuals and synthetics create a significant fee source for the underlying chains, thereby giving the chain economy the necessary external yield for it to be sustainable. To be exact, synthetics bring in more volumes (and thus swap fees) on DEXes and more transaction to a chain — due to fostering arbitrage with the spot assets, also meaning deeper liquidity pools and hedging interest as a result.

Over the past years, a number of synthetics issuing projects have become widespread in EVM networks, with different approaches to ensuring peg and price stabilization. Unfortunately, they all have some drawbacks — either limitations in scaling, or insufficient stability of the peg, or overly complicated. In any case, those teams innovated, and so shall we.

We propose the launch of a Bera-native algorithmic synthetic protocol, which will have the necessary tools for stabilizing the peg through the management of the protocol’s monetary policy. Yet it won’t require 100 engineers and will be truly decentralized, for bear degens to enjoy!