NovaBank
  • Nova Bank
  • Overview and Background Story of NovaBank
  • Economic Theories of NovaBank
    • Internal Coordination Theory
    • The Relationship Between Material Economy and Digital Economy
    • Game Theory of the NovaBank Protocol
    • Applying Internal Coordination Theory to the NovaBank Protocol
    • How These Mechanisms Create an Economic Flywheel
  • Introduction to the Operating Mechanism of the NovaBank Protocol
    • Treasury Contract
    • Sales Contract
    • Bond Contract
    • Staking Contract
    • Reward Vesting Contract
    • Contribution Value Algorithm Contract
  • NovaBank Internal Operation Mechanism Diagram
  • Explanation of NVB Token
  • NovaBank Ecosystem Development Plan
    • History of Token Economy Development
    • Challenges Faced by DeFi 1.0
    • NovaBank's Important Role in the Token Economy
    • NovaBank Launches Cross-Chain Protocol
    • NovaBank's Innovative Lending Product Plan
    • NovaBank DEX Implementation
    • NovaBank's Treasury Appreciation Plan
    • NovaBank 3.0: A Global Integrated Financial Autonomous System Based on Algorithmic Non-Stablecoin
  • NovaBank Ecosystem Diagram
  • Roadmap
    • Phase 1: Platform Development and Initial Operations
    • Phase 2: Business Expansion and Feature Upgrades
    • Phase 3: Global Expansion and Ecosystem Development
    • Phase 4: Innovation and Diversified Services
    • Phase 5: Building a Comprehensive Digital Financial Platform
    • NovaBank’s Vision for the Future
  • Contact
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  1. Introduction to the Operating Mechanism of the NovaBank Protocol

Treasury Contract

The treasury contract is a simple vault that holds all funds collected by the protocol. For example, if a user purchases a USDT bond, the USDT is fully received by the treasury in exchange for an equivalent amount of NVB. New NVB is minted based on the treasury's risk-free assets (RFV). (The RFV will be detailed in the Bond Contract section.)

  • Total Treasury Assets: The total value of various assets entering the treasury through bond sales, including USDT, NVB-USDT LP, etc.

  • Total Treasury Risk-Free Assets: The total risk-free value of various assets entering the treasury through bond sales. For instance, the value of USDT bonds equals the risk-free value of USDT bonds. The total value of LP bonds is greater than the risk-free value of LP bonds.Therefore, while the total treasury assets may decrease if the NVB price drops, the total treasury risk-free assets show a consistent upward trend.

NovaBank stipulates that each minted NVB is backed by $1 of treasury risk-free assets. As the treasury's risk-free assets increase, more NVB will be minted.

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