In NEPRI TFA Protocol, users act in one or more of the following roles:
- Liquidity Provider
In addition, there are special auxiliary agents that are required for NEPRI TFA's infrastructure:
- Oracle Feeder
A trader engages in buying and selling tAssets against nYUSD through NEPRIswap and benefits from price exposure via tAssets.
A minter is a user that enters into a collateralized debt position (CDP) in order to obtain newly minted tokens of a tAsset. CDPs can accept collateral in either nYUSD or tAssets, and must maintain a collateral ratio above the tAsset's minimum (set by governance). Therefore, minters effectively take a short position against the reflected asset's price direction and take a neutral position when collateralizing the position in nYUSD or a long position when collateralizing in another tAsset.
Collateral can be withdrawn as long as the CDP's collateral ratio remains above the minimum. Minters can adjust the CDP's collateral ratio by burning tAssets or depositing more collateral.
A liquidity provider adds equal amounts of a tAsset and nYUSD to the corresponding NEPRIswap pool, which increases liquidity for that market. This process rewards the liquidity provider's newly minted LP tokens, which represent the liquidity provider's share in the pool, and also provides rewards from the pool's trading fees. LP tokens can be burned to reclaim the share of tAssets and nYUSD from the pool.
A staker is a user that stakes either LP Tokens (with the Staking contract) or NEPT tokens (with the Gov contract) in order to earn staking rewards as NEPT tokens. Whereas LP token stakers earn rewards from new MIR tokens from inflation, NEPT tokens earn staking rewards from CDP withdrawal fees.
If the user has staked NEPT tokens, they are eligible to participate in governance and receive voting power weighted by the amount of their total staked NEPT. Governance is the process through which new tAssets get whitelisted and protocol parameters can be altered.
LP Tokens can be unstaked at any time, but NEPT tokens can only be unstaked when they are not used to represent a vote on a pending governance poll.
An oracle feeder is a designated NEPRI account responsible for providing an accurate and up-to-date price feed for a specific tAsset and is the sole party that is permitted to update the registered reported price of the reflected asset. Because of its crucial role in the operational stability of tAssets, the oracle feeder is elected through governance and will be swiftly replaced by the community if ever it underperforms in its duties.
There are several tokens involved in NEPRI Protocol: