Trust and Transparency
Transparency is a fundamental aspect for Num Finance. Recognizing the importance of trust in financial matters, especially in the DeFi sector, Num Finance aims to be clear and open with its business.
Num Finance is dedicated to issuing nTokens with a focus on collateralization and transparency, essential for fostering trust and confidence.
Collateral
Each nToken issued by Num Finance is fully collateralized by an asset in the traditional market. This means that for every nToken in circulation, there is a real-world asset backing it, ensuring the token's value and stability. For example, when Num Finance issues an nToken like the Num Finance iShares Treasury Bond 0-1yr (nTBILL1), it is backed by actual shares of the BlackRock iShares Treasury Bond 0-1yr (IB01) held in reserve. This collateralization ensures that the nTokens not only represent, but are effectively backed by, real financial assets, offering a distinct connection between the DeFi and traditional financial ecosystem.
Transparency mechanisms
Num ensures transparency with its users by making relevant information about its products available. The mechanisms are as follows:
Proof-of-Reserves: Num Finance publishes audited reports detailing the funds backing the nTokens in circulation. These reports will be audited by an independent accountant.
Smart-Contract Address: The Addresses of the nTokens will be always available to the users once the product is live.
Proof of Reserves (nTokens)
This Proof of Reserves confirms that nTokens are financially backed, ensuring they can be reliably exchanged for their value in USDC. Reserves for nTokens redemption are kept in separate, bankruptcy-remote accounts under the Company's name at regulated financial institutions. These are distinct from the Company's operational accounts and are maintained for the users' benefit.
Ensuring Security and Stability in DeFi
By holding to these principles of collateralization and transparency, Num Finance not only secures its nTokens but also contributes to the overall stability and reliability of the DeFi market. Investors and users can engage with Num Finance's products with confidence, knowing that there is a robust, transparent, and verifiable system ensuring the integrity of their investments.
Guardrails
As a protocol managing Real World Assets, we prioritize security and stability.
Num Finance actively reduces potential risks for nTokens holders through the following measures:
Bankruptcy remote nTokens Reserve setup.
Periodic Proof of Reserves audited by an independent accountant.
Compliance with the highest international standards.
Partnerships with top-tier security and transparency entities.
Last updated