# Lucra Protocol

## What is Lucra?

**Lucra** is a savings protocol offering low-volatile yields on NEPRI Yield USD (nYUSD) stablecoin deposits. The Lucra rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. We believe that a stable, reliable source of yield in Lucra has the opportunity to become the reference interest rate in DeFi and Open Finance.&#x20;

The Lucra protocol defines a money market between a **lender**, looking to earn stable yields on their stablecoins, and a **borrower**, looking to borrow stablecoins on stakeable assets. To borrow stablecoins, the borrower locks up [lended Assets](https://app.gitbook.com/@nepri/s/lucra-protocol/lended-assets-lassets) (lAssets) as collateral, and borrows stablecoins below the protocol-defined LTV ratio. The diversified stream of staking rewards accruing to the global pool of collateral then gets converted to stablecoin, and then conferred to the lender in the form of a stable yield.&#x20;

Deposited stablecoins are represented by [Lucra NEPRI (lNEP)](https://app.gitbook.com/@nepri/s/lucra-protocol/money-market). lNEP tokens are redeemable for the initial deposit along with accrued interest, allowing interest collection to be done just by holding on to them. Lucra is structured to provide depositors with:

* **High, stable deposit yields** powered by rewards of [lAsset collaterals](https://app.gitbook.com/@nepri/s/lucra-protocol/money-market)
* **Instant withdrawals** through [pooled lending](https://app.gitbook.com/@nepri/s/lucra-protocol/money-market) of stablecoin deposits
* **Principal protection** via [liquidation](https://app.gitbook.com/@nepri/s/lucra-protocol/money-market) of loans in risk of under-collateralization

Lucra will be an open, permissionless savings protocol, meaning that any third-party application will be free to connect and earn interest without restrictions. Through Lucra.js or EthLucra, developers will interact with Lucra using just a few lines of code.

Further documentation of Lucra Protocol is provided [here.](https://nepri.gitbook.io/lucra-protocol/)
