Application and Benefits of the Programmable Asset Framework
It’s yet another supernova time with Nova Finance and we’re set to have a blast! In the last session, we explored the world of Nova’s programmable asset framework; well this time, we shall be taking a dive into its application and the benefits that can be derived from its use.
The nAsset framework acts as the supporting structure for the Nova Finance MVP and will power resulting products and variations for select audiences such as retail and institutional funds. Among the features to be expected are:
- Digital Asset Allocation
The Nova Finance MVP is a blockchain-based technology platform that provides tools for experienced cryptocurrency users to automate and optimize their asset allocation, as well as potentially share it with other users. It enables anyone to design and utilise dynamic portfolio nAssets with a variety of automated controls. These automated rules can be used by users to help them manage their own digital assets and adapt to emerging market trends. The tools are intended to help users maximize gains, as well as reduce capital risk. Less experienced users can participate in a portfolio and use strategies developed by more experienced users. This allows people with less experience to participate in the cryptocurrency ecosystem in a sustainable way.
- Auto Yield Generation Portfolio
The assets can be set up to be invested in higher-risk yield opportunities in return for possibly greater returns. Users who participate in a specific strategy created by another user will automatically give the portfolio creator 10% of their yield derived as a way to encourage the creation and sharing of insight and strategies. There are numerous yield strategies available, and new strategies will be added as new opportunities arise.
- Staking Program
Any Portfolio nAssets owned will be eligible to participate in a staking program in which they will receive Nova Tokens as a bonus for supporting the protocol’s activities in ways like providing liquidity, development work as part of a team, protocol usage, and so on.
As earlier mentioned, there are some benefits to be gained from using the programmable asset framework, and they can be grouped into customisation, composability, and control, thus:
One of the biggest advantages that the programmable asset framework gives is the ability to customise. The nAsset infrastructure gives an asset a lot of flexibility while also allowing users to reduce risk and maximize gains. The types of control, functionality, and connectivity that the nAsset framework can provide for users will become more diverse as the protocol evolves.
Assets minted on Solana follow the SPL token standard. This means that other protocols can easily accept and use the value stored within a nAsset. Protocols will also be able to query the value and contents of a nAsset to ensure proper allocation and liquidation activities occur.
A portfolio gives users entry to a variety of functionality while giving them complete autonomy and transparency over the activity that their deposited assets are carrying out. A user can also withdraw from a portfolio at any time without penalty.
These are just a taste of the awesomeness that comes with utilising the products from Nova Finance. The adventure of a lifetime awaits you, jump in now!