Nereus Finance NXUSD-3CRV v2 pool
Why is $NXUSD StableCoin an excellent option?
Decentralized stablecoins are a type of stablecoin that is not controlled by a central authority, such as a government or a company. Instead, they are built on blockchain networks, such as Avalanche or any other blockchain, and are maintained by a distributed network of users.
The key advantage of decentralized stablecoins is their ability to provide users with a more transparent and censorship-resistant alternative to traditional fiat currencies or centralized stablecoins. By leveraging the power of blockchain technology, decentralized stablecoins can provide a more secure, reliable, and efficient means of transferring value across borders without the need for intermediaries.
$NXUSD is an over-collateralized stablecoin.
Over-collateralization is a term used in the context of collateral-backed stablecoins backed by the value of a particular asset, such as the US dollar. In over-collateralization, the amount of collateral that is held to back the stablecoin is greater than the actual value of the stablecoin in circulation.
For example, a stablecoin project may require that $150 worth of collateral is held for every $100 worth of stablecoin that is issued. This means that the stablecoin is over-collateralized, as there is more collateral held in reserve than the total value of the stablecoin in circulation.
Over-collateralization is used as a risk management technique to ensure the stability and reliability of the stablecoin. By requiring a greater amount of collateral than is needed to back the stablecoin, stablecoin issuers can mitigate the risk of price volatility and ensure that the stablecoin can maintain its peg to the underlying asset.
$NXUSD stablecoin is over-collateralized, and always has a more significant value than $NXUSD minted.
$NXUSD pool
Now that we know how $NXUSD stablecoin works. Let’s go to check what pools are.
Balanced depositing of funds in a pool is essential and helps maintain a balance between different assets. Liquidity pools are used in decentralized exchanges and other decentralized finance (DeFi) applications to facilitate the trading of cryptocurrencies and other assets. Liquidy pool is also vital for $NXUSD stablecoin.
When users deposit funds into a liquidity pool, they typically do so in the form of two different cryptocurrencies or assets. If we deposit more different assets, the pool is more stable, just like we have in our Curve pool. By depositing these assets into the pool you will receive LP tokens, which you can later on stake in Nereus Finance and receive lucrative $WXT rewards.
Balanced depositing of funds is important because it helps ensure that the liquidity pool remains balanced and that there is sufficient liquidity for trades in both assets. Suppose one asset becomes more popular, and there is a surge in demand for it. In that case, the liquidity pool may become imbalanced, and the value of the other asset may decrease relative to the more popular asset. This can lead to higher slippage, or the difference between the expected price and the actual price of an asset when trading.
To maintain a balanced liquidity pool, users should consider depositing equal amounts of each asset or monitoring the ratio of assets in the pool and adjusting their deposits accordingly.
Depositing in NXUSD-3CRV pool will be incentivized in Nereus Finance! When you deposit in the pool, you will receive LP tokens in your wallet, which you can then stake in Nereus Finance under “Stake” tab.
In v2 of the NXUSD-3CRV LP Staking pool, $WXT emission will be stable, and the amount of rewards paid out is constant, which means that %APY only depends on the number of LP tokens staked by users. If people withdraw their funds from the pool, rewards will be higher.
Nereus Finance will leave 20% APY for all NXUSD deposits in the Earn module until 01. March 2023.
Here is the link to Curve NXUSD-3CRV pool to add liquidity and get the LP tokens for Staking:
https://avax.curve.fi/factory/66/deposit
Here is the link where you can stake LP tokens.
