What if you had the opportunity to buy NUMA at a fraction of the current price?
Greetings, numans! Over the next few weeks, the numa protocol will begin launching on other EVM-chains at significantly reduced prices. This strategy involves forking and launching the complete numa protocol on each chain, independently. The $NUMA token will remain the same and will be bridgeable from the master chain, Arbitrum, to satellite chains, such as Base or Sonic. Once bridging is enabled, price can begin to converge. The complete details on the bridging mechanics can be found in our white paper.
Launching the complete protocol on new chains has distinct advantages, as opposed to simply allowing the $NUMA token and nuMoney synthetics to bridge.
Access new and deeper liquidity on each chain, instead of being limited to a single chain—while expanding the reach of user acquisition.
New launches will demonstrate the efficacy of the collateral snowball. New vaults will launch with minimal liquidity to allow for rapid rETH-value accrual of the $NUMA token and rapid accumulation of rewards to be distributed when staking goes live.
Along with lending, synthetics pairs will be trading with each launch. It doesn’t make sense to launch synthetics with staking on new launches, because there won’t have been time for rewards to accrue. Without having staking live, the protocol is able to accrue rewards which will provide high APY yield when staking goes live.
As mentioned, there will be synthetics pairs trading with each new launch. The synthetics UI won’t be available and neither will staking. The reasons for doing this are i) to show that synthetics work and can maintain their pegs, and ii) more importantly, to kickstart the collateral snowball and show how the protocol takes advantage of market volatility to keep the flywheel moving and allow the $NUMA token to continue accruing value, while continuing to accrue rewards. Deploying synthetics forces volatility into the system.
Further, whenever synthetics are burned or minted, a percentage of the $NUMA token is burned permanently, which means all $NUMA holders will benefit from an increase in the rETH-backing of their holdings.
Additionally, having synthetics trading at the time of launch forces the protocol into a state of higher leverage, increasing the volatility of the $NUMA token and allowing for more rapid rETH-value accrual.
These new launches with synthetics also demonstrate the efficacy of the dynamic buy fee. By design, whenever nuMoney synthetics are minted or burned at a price lower than the vault buy fee, the buy fee will contract and “chase” the LP price. This forces vault transactions to continue to happen and keep the flywheel of rETH-value accrual and rewards accrual moving, even as the $NUMA token dips in price.
By expanding to other chains, we can grow our community and create more points of entry for the numa protocol. With each new launch, we see huge opportunities for marketing and user acquisition.
Taken all together, we are excited about the opportunity to have a fresh launch on each chain and expand our community, as we move to the full protocol release. With each new launch at a significantly reduced token price and market cap, the Game begins. Game on!
FAQs
Will this affect my loans on Arbitrum? No, the design of the bridge prevents this from happening. Further, bridging won’t be enabled until a later time when arbitrage is possible.
How soon will additional chains be added? We are looking at a few weeks from now for the first chain. Subsequent chains will follow on a regular schedule to be announced after the first satellite chain deployment. E.g., it may be possible to deploy on a new chain every couple weeks, repeating the Game.
When will the synthetics UI and staking become available? Once the protocol feels that enough yield has accrued and enough liquidity is available on a particular chain, we will announce the timing for the synthetics UI and staking.
Will rETH be used on every chain? No, we plan to use the native gas token on whichever chain we launch, provided there is an LST version which also has a Chainlink price feed. For example, on Base, we will continue to use rETH; on Sonic, we expect to use sTS.
Why not release bridging at launch? And when will bridging be available? First, by design, bridging won't be possible until the sell price on a satellite chain exceeds the buy price on the master chain, so it wouldn't even be used, regardless. And second, deploying the contracts simply introduces unnecessary risk for the previously mentioned reason. The bridging contracts are complete and will be deployed in due time.
