Nerite’s BOLD Incentives Program

Blue Chip, a stablecoin rating agency which we greatly admire, has rated the Liquity V1 system as the #1 safest stablecoin design ever. Liquity’s first stablecoin, $LUSD, is one of only two stablecoins with an A rating, and is the only crypto backed stablecoin with an A.  

We believe the updates to the Liquity system in their Version 2 will make the protocol an even bigger success and significantly more scalable. That’s why when we were designing the Nerite Protocol we chose to use Liquity V2 as a base and extend it with our own features: money streaming, delegating collateral, optimizing it for Arbitrum specifically, and adding new security features like debt limits so we can handle a greater range of collaterals. 

While extending Liquity’s base protocol, we did not do it in the dark or in secret. Nerite was built in the open for everyone to see and with permission from the Liquity team. We are a “Friendly Fork” and chose to pay a small license fee to them. In return Nerite received enormous help directly from the Liquity team: 

• They gave us lots of technical support from incredible engineers like Colin Platt.

• They shared their audit reports with us early which allowed us to improve the security of our protocol faster.

• They helped us connect and partner with LP networks like the Defi Collective.

Because of this support (and much more to come) Nerite will be able to launch months sooner, in a safer / more secure way, with more trust from more ecosystem partners. That’s the power of being a “friendly fork.” The value we have received from the Liquity team can not be overstated.

Now it’s time for the next stage in our friendship. As we prepare to launch Nerite’s official governance token, $NERI, we will be using some of it to boost liquidity and utility for Liquity’s new stablecoin $BOLD. Version 2 of their protocol is expected to launch on Thursday, January 23rd, 2025 along with the new $BOLD stablecoin.

Here’s what you can expect from us:

1% of the $NERI supply will go directly to Liquity AG for giving us a license to the V2 code. Vesting terms for this allocation will be shared soon, at a later date.

4% of $NERI will be used as long term liquidity incentives for a BOLD/USDN pool, which will be initially seeded on Ramses, a decentralized exchange on Arbitrum. 

2.5% of $NERI will be used to incentivise BOLD Stability Pool depositors linearly over the first 6 months of launch.

2.5% of $NERI will be used as long term incentives for using $BOLD across the Arbitrum Defi ecosystem via Royco vaults or other usage tracking tools. It’s possible these incentives could stack with BOLD/USDN depositors incentives. This will include things like bridging $BOLD to Arbitrum, borrowing from or depositing tokens in lending pools, providing tokens as liquidity on DEXes, participating in crowdfunds.

When Liquity wins, Nerite wins. When Nerite wins, Liquity wins. 

Go Slow. 🐌