What Is Nuo Network?
Nuo Network is a decentralized and transparent debt network that seeks to create an open financial system through global lending, trading, and a bonds network. The peer-to-peer Neo Network will connect lenders and borrowers from around the world using smart contracts and provide users with the ability to acquire long or short the crypto tokens including Bitcoin, Ethereum, MakerDAO and many more.
Lenders on the Network’s supply reserve pool with ETH or ERC20 tokens and earn interest on their crypto assets every single day while borrowers can borrow ETH or ERC20 tokens from the debt reserves created by the lenders and stake collateral using the Nuo Network smart contract.
How Nuo Network Works
After creating an account on the platform, the Nuo Network will automatically create a smart contract-based trading account for the user. The user is then required to transfer ETH or ERC20 tokens into the trading account to begin lending or borrowing on the network.
Users have the option of connecting their account with a trading account as a login method or sign a loan or reserve order instead of using a password. In order to be a lender on the platform and be part of the lending pool, users have to create debt reserve with their preferred token for a specific duration. After the reserve expires, the interest accrued is transferred to the lender’s trading account.
All the loans on Nuo Network are collateralized; therefore, for a borrower to acquire through creating a loan order; they should have 1.5x of the required loan amount as collateral. After the loan is matched to a reserve, it is instantly funded, and the funds are transferred into the borrower’s trading account, where they can withdraw them at any time.
To repay the loan, the borrower should have the loan amount plus the interest in their trading account. In case the borrower defaults on the loan, the collateral is used to repay the loan and the remaining collateral amount is returned to the borrower’s trading account.
Nuo Network Benefits
On the debt marketplace, borrowers will have access to a wide variety of long or short the crypto tokens such as Ethereum, Bitcoin, Kyber Network, Augur, Basic Attention Token, Wrapped Bitcoin and MakerDAO. Borrowers will have the ability to borrow the loans at a preferred interest rate and repayment period.
Every loan issued on the platform is backed by collateral in the smart contract. Therefore, this gives the lenders an assurance that in case the borrower's default on the repayment of the loan, the collateral will pay them back their entire loan amount plus interest.
Smart Contract Integration
Nuo Network’s trading account implements smart contracts that provide users with complete control of their ETH and ERC20 tokens using Meta transactions. The smart contract also stores all the funds on the network, meaning that Nuo Network doesn’t have any control or access to the funds.
Margin Trading And Bonds
Nuo Network features a peer-to-peer global trading network made up of margin traders that have shared liquidity and up to 10x leverage, as well as a bonds network of liquidity providers, focused on non-fungible tokenized assets.