Transparency

To maintain the integrity of NUSD's 1:1 redeemability for USDC, the protocol undergoes routine reserve audits conducted by independent third-party firms. These audits ensure that every NUSD in circulation is fully backed by verifiable assets.

• Independent Verification: Reserve audits are performed by reputable audit firms to confirm that the protocol's reserves meet or exceed the required backing for NUSD.
• Transparency and Accessibility: Audit reports are published and made publicly available to all users, ensuring full visibility into the reserve backing.
• Regular Schedule: Audits are conducted periodically (e.g., monthly or quarterly) to provide consistent and ongoing assurance of the protocol's backing.

The safety and security of reserve assets are equally important to maintaining trust. Custody attestations are carried out to verify that reserve assets are securely held and readily accessible for redemptions.

• Trusted Custodians: Reserve assets, including USDC and other stablecoins, are held with regulated and secure custodians to ensure their safety.
• Public Disclosure: The results of custody attestations are shared with the community, reinforcing confidence in the protocol's operational transparency.

The protocol leverages blockchain technology to provide real-time visibility into its operations and reserves. Users can independently verify key metrics through publicly accessible tools.

• Reserve Visibility: The reserve holdings and transactions are fully visible onchain via public block explorers, allowing users to independently confirm the protocol's reserves.
• Dashboard Metrics: The protocol's dashboard provides real-time updates on critical data, including USDn's circulating supply, reserve composition, and staking activity.
• Immutable Records: All reserve-related activities are permanently recorded on the blockchain, ensuring transparency and traceability.

To supplement oncchain data and audits, the protocol publishes regular transparency reports that summarize its operations, reserves, and key metrics.

• Reserve Updates: Transparency reports detail the composition and status of the reserves, including stablecoin balances and yield-generating allocations.
• Audit and Attestation Results: The findings from reserve audits and custody attestations are included in the reports, providing a comprehensive overview of the protocol's financial health.
• Incident Reporting: Any deviations, such as temporary liquidity imbalances, are disclosed in these reports alongside the steps taken to address them.