Summary

What is the numa protocol?

Running on the Arbitrum L2 platform, numa is an Ethereum-based protocol that brings real-world assets onto the blockchain. The protocol provides decentralized, on-chain mechanisms for minting synthetics that are transparently collateralized on the blockchain. Through burn-and-mint tokenomics, the numa protocol removes custodial risk and provides for free market exchanges and transactions.

Synthetic assets are minted by burning the native token of the numa protocol—$NUMA. $NUMA tokens are burnt at a 1:1, dollar-for-dollar ratio to mint the equivalent amount of a synthetic asset—viz., nuMoney. The initial synthetic assets (nuMoney) to be offered on the numa protocol will be $nuUSD, $nuBTC, $nuETH, and $nuGOLD—corresponding with USD, Bitcoin, Ethereum, and Gold. Additional fiats, commodities, blockchain assets, bonds, and equities may be added as nuMoney in the future—such as GBP, EUR, ZAR, GOLD, SILVER, and OIL.

The numa protocol is backed by liquid-staked ETH—in the form of Rocket Pool rETH—which allows users to earn sustainable, real yield on their real-world assets. Users deposit rETH into the numa vault to mint $NUMA, which can then be burnt to mint any of the available synthetics (nuMoney). Users can then single-stake their nuMoney to earn yield on these assets or they can trade between synthetics with zero-slippage.

The numa solution is unique in that synthetics are efficiently collateralized, with the $NUMA token providing the necessary reflexivity through price and supply elasticity to represent the over-collateralization in the system. This market leading efficiency means that nuMoney can gain mass adoption, while remaining securely and transparently collateralized on-chain in a decentralized and permissionless manner.

Additionally, the numa protocol offers native lending and leverage. Users are able to deposit $NUMA tokens and receive a loan in rETH, interest-free—allowing holders to free up capital, while still maintaining $NUMA exposure. Further, users are able to open leveraged long and short positions on $NUMA—2x, 5x, 10x, etc.—and these leveraged positions are also interest-free.

Two of the biggest obstacles in blockchain adoption are real-world use cases and bringing off-chain liquidity onto the blockchain. numa solves adoption by providing yield-bearing everyday assets to the blockchain and by partnering with institutions who bring users from outside the crypto ecosystem onto the protocol.