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Tom
@tomismeta
Internet human.
Joined March 2022
633 Following    7.1K Followers
The elegance of the NetNet protocol continues with inverse bonds which allow you to redeem your NET from the treasury for 98.5% of NAV ($162.91) and burns the NET. To date, we’ve seen 9,582 NET burned (6.27% of total supply), and users have redeemed a total of $1.54m resulting in the NAV increasing due to redemption value being slightly lower than NAV. Inverse bond capacity per epoc is 1% of the total liquid USDG maintained at a 30/70 split between the liquid USDG and yield bearing Morpho vault. If the market price (currently $160.82) falls below NAV, it’s arbitraged typically to within 5% of NAV because of the 5% buy tax. We saw market efficiency arbitrage a single 2,208 NET $346k ($156.52 per NET) market sell last night which brought the market price back right in line with NAV as of this morning. The treasury (ownership revoked and immutable) still sits at $24.9m in USDG. NET is essentially a stablecoin with only upside while staking rewards remain at zero. NetNet is battle-tested new financial art.
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