Decentralized Finance is growing by leaps and bounds. The top DeFi protocols have registered TVL (Trading Value Locked) worth billions of dollars. Despite the technological advancements, DeFi protocols require manual intervention when a user wishes to make changes to his portfolio.
Imagine if an investor gets hold of programmable assets that can manage & automate the portfolio in the most efficient manner, bringing in higher yields. Well, that’s what NOVA Finance is about. Powered by nAssets, Nova finance brings the smart way of managing crypto portfolios. Let’s review what this project brings to the table –
What is Nova Finance?
Nova Finance is a portfolio management platform with programmable & automated asset framework that allows people to invest in crypto assets without worrying about learning the core financial concepts.
Built on Solana crypto blockchain, Nova Finance aims to bridge the gap between industry experts and regular investors by offering them a platform that allows the investors to invest in the well-optimized & automated portfolios designed by the experts themselves.
Multiple foundations including Solana back Nova Finance
The framework is built around the following design philosophy –
- Provide easy access to digital assets class
- Maximise user value
- Automation over education
In order to achieve its goal, the project introduce synthetic assets called nAssets.
What are nAssets?
nAssets are the synthetic assets in Nova Finance’s framework for programmable assets. When a user engages with or utilizes the programmable asset framework, they will receive a token called nAssets. Just like mAssets by Mirror Protocol, nAsset represents the asset (stablecoin, crypto, NFT) the user has deployed within the framework.
Nova Beta is here!!
— Nova (@NovaFinance_) July 29, 2022
Time to build your Nova portfolio using any of our 6 automated strategies. Deploy any combination of the 30 whitelisted assets🚀🚀
All Early Adopter NFT holders out there, 100 WL spots are reserved just for you!
Register your wallet:https://t.co/QkKAJikeg4 pic.twitter.com/21zof4m2dv
Using nAssets, the underlying asset can be programmed to perform certain functions. Take for example, if nAsset representing BTC hits 50% growth, a part of it is converted into ETH which is further allocated for staking to earn higher returns. All this can be programmed beforehand and will be automatically executed like a smart contract without manual intervention.
nAssets are executed like smart contracts performing set of programmed tasks
Using nAssets, experts can create and program portfolios which is also the first product offered by Nova Finance. A portfolio creator can set the conditions, how the portfolio should behave by placing the right yield strategies that can generate additional income.
Following is the list of initial nAssets designed by the team which can be used by the portfolio creators –
You can compare nAssets to Linear Finance ℓUSD synthetic asset for reference
How does nAsset work?
There are a series of steps involved from minting nAsset to programming it. Listed below –
nAsset Creation:
In order to mint nAsset, the user has to send the underlying asset like BTC, ETH or USDC to a Primary user token account termed as SPLU-Primary. SPLU account is used to store the SPLM asset. For minting nAsset, the user needs to convert the underlying asset to SPLM-Primary.
Both SPLU and SPLM are used through the framework with the following set of conditions –
- Primary
- Secondary
Primary:
These are accounts and assets owned by the user before the delegation.
Secondary:
These are accounts and assets owned by the user after delegating them to the nAsset framework.
The process has portfolio program mint address (PPM) which contains on-chain information about the nAssets and the supporting metadata. This information is hashed, and thus cannot be altered. After PPM, portfolio program user (PPU) is also created that contains user data account which helps provide safe access to PPM. Although the user has full control, he is required to delegate access for nAsset implementation.
Note that the user can anytime exit the portfolio without restriction
nAsset Management:
After the minting of nAsset, SPLM-Primary is converted as per the breakup defined during the nAsset minting process. The conversion can be done either via on-chain swap or trade programs.
The conversion program interacts with the SPLM-Primary asset, converts it into the SPLM-Secondary asset which is then stored in the SPLU-Secondary account. The user then authorizes the nAsset framework to play its part. The following example will help understand this whole process –
Programmability:
There are two types of programs on which the nAsset operates –
- Conversion Instructions
- Vault Deposits
Conversion Instructions:
Programming nAsset to convert from one asset type to another is part of the conversion instructions program. It allows the nAsset to change its composition based on the said rules set by the user.
Vault Deposits:
If a users wish to delegate assets to earn higher yield or rewards, he can approve programs that will execute the same. These programs fall under vault deposits.
nAsset framework helps with asset allocation, yield generation and staking
What is Nova Coin?
Nova coin is the native token of Nova Finance. It serves as a governance token in Nova’s ecosystem which is responsible for making decisions in the mentioned space –
- nAsset Integration
- Protocol upgrades & modifications
- Portfolio Assessment
- Treasury Spend
The token will allow the holders to create and vote on on-chain proposals which will determine the future direction of the project. The token also provides economic incentives which will be distributed to the platform users for their participation and contribution to the Nova ecosystem.
Users can stake their tokens into the decentralized market making pool to provide the liquidity for the transactions. In exchange, they will be rewarded with Nova Tokens.
Nova Tokens will be used to unlock premium features
Nova Coin Tokenomics:
The total supply of Nova token is capped at 10 million. Token distribution is shared below –
Nova Finance Team Members:
Adam Greenberg:
Adam is the co-founder of Nova Finance & SageCity. He has 7 years of experience in the blockchain industry and is responsible for product design within Nova.
Tom Sichel:
Tom founded Nova Finance & SageCity alongside Adam. He has 5 years of experience in fintech, within the IPO space.
Bacem Beragaoui:
Bacem is the lead developer and has over 15 years of experience in software development.
Nova Coin IDO:
Nova was launched on Solanium launchpad on 9th December 2021. It was hardcapped at 200,000 USDC at a sale rate of 2 USDC per token.
Nova Finance Benefits:
nAsset Composability:
nAssets that are minted on Solana holds the SPL token standard. This makes it easy for other protocols to accept and use the value stored within nAsset.
Portfolio Management:
Any investors can create or invest in the portfolio designed by expert investors. This will expose them to better returns and worry-free management than manually trying to figure out the best way to optimize their ROI.
No Locking Period:
nAssets that represent the underlying assets when delegated to the programmable framework can be moved out of the portfolio anytime without worrying about locking period.
Staking Rewards:
Liquidity providers who stake NOVA tokens to provide liquidity to the platform are rewarded with Nova tokens for their efforts and contribution towards the network.
Our Gitbook is live!📖
— Nova (@NovaFinance_) August 10, 2022
Ready for a deep dive into the Nova protocol?
Check out this link👇🏽https://t.co/AYIF99ncyN
Affiliate Rewards:
As a portfolio creator, you’re entitled to receive 10% of the all the yield generated if the people joined your portfolio. This is amazing side income for the experts of this field.
Multichain:
Nova is built on Solana but it has plans to integrate with other blockchains like Ethereum which will help it onboard more assets on the platform, promising high user engagement.
Nova Finance Drawbacks:
Under Development:
The project has a long way to go and is still under development. All the benefits and rewards are yet to be put into practice. It’s a wait and watch game.
Unproven Concept:
The concept came fresh from the oven, it’s fairly new and the demand is still unknown. We don’t know how the users will react and their expectations once the complete version goes live.
Nova Coin Price:
Please check the latest Cardence Coin price, shared below –
Nova Coin Price Prediction:
At the time of writing this post, the coin is not trading on the top exchanges and is available on limited decentralized exchanges. Therefore, it will be difficult to predict the price of NOVA coin at this moment. Bookmark this post and Subscribe to the newsletter as we keep on updating the post.
Checkout DeltaFi DEX, AI-driven AMM on the Solana blockchain
Where to buy Nova Coin?
Nova can be purchased from leading decentralized exchanges like Serum DEX and soon will be available on leading centralized exchanges like Binance and Coinbase.
Is Nova Finance a Good Investment?
Launched on Solanium launchpad, the project has received good response in the IDO sale round. The project offers a unique proposition in the DeFi space which has the potential to attract industry experts as well as beginners to the platform.
Harnessing the power of nAssets, it is all set to revolutionize portfolio management by inviting users to design their own portfolio that can be executed automatically as per the rules set by them. Moreover, newbies can join the expert’s portfolio and reap the same rewards without having to learn any financial skills.
Nova values automation over education. It’s motto is similar to DeFi Land i.e to make DeFi easy for everyone. Though everything seems to be on track, the concept is fairly new and yet to be tested by the masses. The platform is still under development and has a long way to go.
Investing in Nova Finance is like investing in an empty plot of land that has the potential to rise in value. It may boom or it may bust, it all depends on how the project pans out in the next 6 months. For now, I am neutral on Nova. It’s a wait-and-watch game.
Video Review –
This completes my review of Nova Finance. In the next post, I will talk about Cardence launchpad and STEPN app. If you’re a fan of blockchain technology then please do share this post on your social handles and educate everyone around you. Do remember to subscribe to my YouTube channel for more informative content, released every week.
DISCLAIMER:
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.