Nuo.Network — FAQs
Nuo Network is now live on Ethereum mainnet. You can visit our website or checkout the product. Watch the video below to get an overview of the product and our plans for the future.
Getting Started
1. What is Nuo Network?
Nuo.Network is a decentralised debt marketplace that connects lenders and borrowers across the world using smart contracts. Lenders can supply ETH or ERC20 tokens to our reserve pool and earn daily interest, while borrowers can get instant loans which are backed by collateral.
2. How can I start using Nuo Network?
To get started, you need to create an account on the platform by entering a unique username, email & password. Once you enter these details, Nuo Network creates a secure smart contract based trading account. You need to transfer ETH or ERC20 tokens to this trading account address in order to start lending or borrowing on the platform.
Trading Account
1. What is a permanent / temporary trading account?
When you create an account, you are allotted a temporary trading account address. You can transfer ETH or ERC20 tokens within 6 hours to make it permanent. In case you are unable to transfer funds to this account within 6 hours, your trading account expires. Once you are ready to transfer funds to your trading account just click ‘create new’ account and you would be allotted another temporary account instantly.
Note: Trading account is smart contract and its creation requires significant gas (high fees). Our goal is optimise gas usage in order to make sure we can give provide these accounts to our users for free.
2. Connect trading account with an external wallet — Metamask
You can connect your trading account with an external wallet to login to your account or sign a loan or reserve order using an external wallet instead of your password. To connect with an external wallet (currently Metamask), click connect Metamask and authenticate with your password. You would see a Metamask message signing popup. Click confirm to connect your trading account with Metamask.
Note: If you see a modal asking you to sign with Metamask but do not see the Metamask pop-up, click Metamask icon on the top right corner of your browser.
Lender
1. What is a debt reserve and how can I create one?
Nuo Network provides a new way to lend on the platform. Debt reserves are a pool of ETH or ERC20 tokens. These reserves are lent to borrowers based on their loan request. To participate in a lending pool, users can create debt reserve for a token of their choice for a specific duration. When this reserve expires, the entire amount + the interest earned is automatically transferred from our reserve contract to your trading account.
2. How much interest do I earn on my reserve?
Once you create a debt reserve, you would earn interest on this reserve daily based on the number of loans funded by this reserve. The interest is accrued in the reserve contract and distributed proportionally.
Example: If you have supplied 10 ETH in the ETH reserve which now has a total of 100 ETH, you would earn 10% of the interest payouts. Your earnings are visible in your account and are transferred to your trading account once the reserve expires. Simply add more tokens to a reserve to get a larger share of interest payouts.
3. Can I cancel my reserve order anytime?
Yes, you can cancel your debt reserve anytime before the expiry date. You would earn interest on your reserves daily, and the accumulated interest till the day you cancel your reserve order + the token amount will be transferred to your trading account.
Borrower
1. How much collateral is needed for creating a loan?
Loans on Nuo Network are over collateralised. For creating a loan order, you need 1.5x of the loan amount as collateral. Example: For an ETH loan backed by OMG token, you can get a loan of $120 in ETH against $180 in OMG as collateral.
2. Can I withdraw my loan amount once the loan is funded?
Once your loan is funded, the entire loan amount is transferred to your trading account. You can withdraw this loan amount from your trading account.
3. Can I repay the loan before the loan tenure ends?
Yes, you can repay a loan anytime before the end of loan tenure. To repay a loan, you need have enough funds (loan amount + interest) in your trading account.
4. What happens if I default on my loan?
In case you are unable to repay the loan in time, your loan defaults. In case of a default, your collateral is used to repay the loan and the excess collateral is transferred to your trading account. You would not lose the entire 1.5x collateral but only worth the loan amount + interest.
Example: For a $100 ETH loan backed by $150 OMG collateral at 2% premium — in case of a default, $102 worth OMG would be used to repay the loan and the remaining OMG worth $48 would be transferred to your trading account. Price fluctuations would change these calculations and are handled by the contract.
Security
1. Is Nuo Network non-custodial?
Yes, Nuo Network is non-custodial. All user funds are locked in a smart contract without Nuo Network having any direct or indirect access to those funds. These funds can be accessed only using your account. Please note that there is a risk of losing access to your funds in case you lose access to your account.
2. What is a smart contract based trading account?
Nuo Network’s trading account is a simple and secure smart contract implementation that gives users control over their ETH and ERC20 tokens through use of meta transactions. This contract based trading account keeps user funds for loan and reserve orders on a single address, removes the need for providing ERC20 token approvals and connects with external wallets (Metamask) to place orders using meta transactions.
3. How do you manage private keys?
The trading account generated is solely controlled by an Ethereum wallet created securely on our servers which is AES-256 encrypted by the password, given by user during signup process. The password is hashed with SHA-256. The Ethereum wallet address can be seen in profile section under DEFAULT header and never holds any funds.
4. What happens when I sign an order with my password?
When an order is placed, the encrypted wallet key is sent to the browser where it is decrypted by the password entered by the user and the order is signed in the browser itself which creates a signature (necessary for meta transactions). This signature is sent to our servers and finally to Ethereum blockchain.
5. What happens if I forget my password?
Please note that your hashed password is used to encrypt your private key which owns the contract based trading account. You would lose access to your account and your funds in case you forget your password. We are creating a secure way to recover your password using security questions and it would be available in our next update.
Note: Please DO NOT forget your password. We currently do not have a password recovery mechanism. We recommend connecting your account to an external wallet (Metamask) to login without your Nuo Network password.
