This article is still a Work In Progress.

Nerite Tokenomics

Nerite currently has no governance token, however having one is baked into the Liquity V2 design. So introducing one in the near future is possible.

USDN Yield

The USDN stablecoin earns yield from a variety of sources: 

1. Native yield from protocol revenue. Each minter/borrower of USDN will pay an interest rate to the protocol that they set themselves as a borrower. Redemptions come from which ever vault in the system is the lowest interest rate. So over time, as the stablecoin retains its $1.00 peg, the system will generate more fees and more yield on average as lower earning vaults are wiped out.
2. Liquidations. Liquidations are owned by the protocol and executed using a pool of deposited USDN. All liquidations in the system earn more yield for USDN depositors.
3. Inflationary incentives. The Nerite team will seek out more inflationary incentives for USDN holders through partnerships which attract more liquidity. If Nerite introduces its own governance token, similar to LQTY for Liquity, in the future then more inflationary rewards can be added for USDN holders.