What is Nectar ($NECT)?

Nectar ($NECT) is Berachain's first natively backed stablecoin. Our aim is to solidify $NECT as the premier stablecoin on Berachain, utilising a diverse array of native collateral assets with additional assets to be announced soon. $NECT is positioned to become a foundational stablecoin within the Berachain ecosystem, fostering growth and innovation throughout the chain. Through strategic partnerships with key Berachain ecosystem projects, $NECTutility is amplified even further.

Our ambition and goal is to have $NECT everywhere!

This will allow us to help foster growth in the ecosystem with new builders and projects being supported.

How do we do this?

Seeing as the Beraborrow protocol is a single-sided money market, lenders do not have to be paid market leading interest rates. This means that interest rates are used to incentivise the growth and stability of $NECT.

The main benefactor is any LP or protocol that drives demand for $NECT. In regard to the Beraborrow protocol itself, this is already achieved through the liquid stability pool and the early bootstrapping of the $NECT-$HONEY LP pair. It could also be a trading protocol using $NECT as a quote asset, a game using $NECT to be able to perform transactions, or simply a new token launching, pairing its initial liquidity with NECT.

This means that $NECT is being locked up or pooled up temporarily, ultimately reducing sell pressure, meaning beraborrow can handle more leverage (as mentioned earlier in the leverage section). These incentives also scale linearly, meaning protocols or projects using $NECT can rely on a consistent flow of incentives that grows as they do.

This helps projects entering the space as they can benefit from pairing with $NECT without any governance or prior approval -all based on TVL they lock in. This could be a memecoin, governance token or some sort of cult-like phenomenon we are yet to discover…