The NAOS Finance token (“NAOS”) has the following utilities:
Yield Boosting: Similar to Curve Finance, NAOS rewards long-term stakeholders locking tokens in the Boost Pool. Lock periods of 3, 12, 24 and 48 months are available, which can boost yields up to 2.5x.
Governance: Lock NAOS token in the boost pool to receive veNAOS governance token. veNAOS holders vote on all protocol matters including, but not limited to, new product features, protocol upgrades, borrower onboarding, loan terms and partnership priorities.
Team will gradually implement other token utilities on the roadmap:
Service Fee Reduction: NAOS charges a 0.5% service fee on total withdrawal amount for protocol reserve. Lenders may reduce service fee by holding veNAOS.
Borrower Staking: Approved Borrowers will have a cap on loan facility. To increase the borrowing limit, Borrowers are required to stake NAOS tokens as reserves. The higher the borrowing limit, the more staked NAOS token is required.
Auditor Participation: To ensure the independence of Auditors, NAOS Protocol does not encourage Borrower briberies. Instead, staked tokens from Borrowers are pooled as reward for successful Auditor evaluations. In the case where more Auditors are available than the borrowing demand, Auditors may need to stake NAOS tokens to be selected.