# 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. `$NECT` is positioned to become a foundational stablecoin within the Berachain ecosystem, fostering growth and innovation throughout the chain. Through strategic partnerships with key Berachain ecosystem projects, `$NECT`utility 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).** \
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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… <br>