Nuo Network is a debt marketplace whose authority lies with the people. Nuo grants users the chance to access different kinds of assets built on the Ethereum network and in different ways.
With Nuo, users can accrue daily interest when they lend to the network. Most of the capital is then given to those who want to borrow after giving an appropriate amount of collateral. One way those on Nuo can avoid tariffs is by capitalizing on meta transactions.
Nuo Exchange will be eight months old in December 2020. The essence of bringing it up was to facilitate cost free exchange from one ERC20 token to another.
Three friends started Nuo Network in India and up till today, they all run the affairs of the company. These founders are Ratnesh Ray, Varun Despande, and Siddharth Verma. Nuo got some money from a seed round that made it realize $500,000 from the efforts of Consensys Ventures. Apart from firms in India, some others in Southeast Asia contributed immensely to its growth when it started. Some of those that will not be forgotten include Astarc Ventures, Singapore Angel Network, and InCrypt.
Nuo’s Lending Rates
With 0% lending rate, it is free to lend SAI on Nuo Network and almost free to lend BAT, SNX, and KNC which have lending rates of 0.04%, 0.06%, and 0.01% respectively. Others with less than 1% lending rate include ETH (0.32%), LINK (0.1%), TUSD (0.71%), REP (0.3%), and WBTC (0.45%). USDC has the highest lending rate at 9.86%.
Benefitting from Nuo
There are two ways to open a Nuo account. One way is by using an email address and password while the second is by using a web 3 wallet.
Nuo rewards those that lend to it and this is not a big deal since the borrowers actually pay interest. Nuo users would have to wait for two days before they start getting profits after taking collateral from borrowers. However, their profits will continue to accrue on a daily basis every 00:00 GMT.
The delay, however, is not for nothing because it has created room for even more profits.
Margin trading and available assets
There are a dozen DeFi tokens promoted on the Nuo Network. Some of them include DAI, ETH, KNC, and USDC.
Margin trading enthusiasts will find some of ETH and DAI based assets to profit from. Its margin trading is with the benefit of 300% leverage. The pairs involved include MKR/DAI, MKR/ETH, WBTC/DAI,WBTC/ETH, and ETH/DAI
Nuo has little or no risks associated with lending because borrowers must always deposit collaterals commensurate with the loan they want to take. The only risks that Nuo lenders may face are common to all lenders in the DeFi space, and they include smart contract risk and sudden changes in asset price.
What constitutes smart contract risk include the chances of being affected by bugs and other errors that affect the code’s logic. But this can be less severe if the contract is always scrutinized from time to time according to what’s acceptable in the industry. This is why Nuo authorized Quantstamp to scrutinize its code’s logic.
Lenders in DeFi are also concerned about high volatility in price. When prices go up and down rapidly, it is likely to change the settings in a network so much that liquidations can occur on a loan. However, with price oracles on ground, the effects are minimized. Lending platforms that do not have oracles operate at a very high risk because they have no guarantee that prices will be fixed to what the collateralization ratio demands.
Lenders also need to use an insurance coverage such as Nexus Mutual on Nuo Network. Nuo Network also has its own insurance package for lenders that contribute a part of their earnings to it.
Although many have identified with Nuo for some months now, it is not clear how Nuo works and the whitepaper is yet to be released. Anyway, the compensation for this is that its source code is not hidden so that every person can confirm it. Nuo’s FAQ page reveals what makes it different from other similar platforms.
Another challenge about using Nuo was raised on Reddit by those who claimed that their assets were unduly liquidated when doing margin trading on the platform.
There are some concerns that Nuo can take decisions over smart contract accounts such as closing them and selling their assets without the owner’s consent. However, this is not entirely new because there have been cases where platforms decided to liquidate accounts because of reports about cyber attacks. But sometimes, the operators may use their authority to victimize some users while pretending to be acting in their favor. For this reason, it is advisable not to keep so much money on a DeFi platform.
As people’s main interest in DeFi is lending, Nuo has succeeded in attracting many who believe it has what it takes to satisfy their needs. Nuo’s success in the market has been contributed by its smart contract account provision which many people see as beneficial for margin trading and what they were already used to for borrowing before the emergence of DeFi lending. As time goes on, it shall be clearer if Nuo liquidates people’s assets with no good reason. Users are also expecting to see how Nuo Network will begin to control bigger amounts when they are deposited.