About Necc Protocol
What is Necc Protocol and how does it work? What is Necc Protocol token NECC how is it used? Where can I get Necc Protocol NECC tokens? What are the key features and benefits of Necc Protocol? How can I learn more about Necc Protocol and stay up-to-date?
Necc is a yield-bearing, fully collateralised stablecoin protocol. These properties are achieved by creating delta neutral positions on whitelisted collaterals. Deposited collateral is lent out to long and short traders to create up to 50x leveraged positions. Fees from trading and liquidations accrue to the stablecoin minters via a second token, NECC.
NECC can also be vested by selling NDOL or NDOL/nNECC LP tokens to the Treasury.
The stablecoin, NDOL, can be minted by depositing a whitelisted collateral. This stablecoin is minted 1-1 to the collateral's USD value, per its associated Flux oracle price feed. NDOL can be burned for any whitelisted collateral type at a rate of (collateral in pool) / (supply of NDOL).
Traders looking to open leveraged positions can "borrow", or more accurately, trade against the collateral pool, with up to 50x leverage. A trader can deposit 1 ETH, then borrow 1 more ETH, for a total position size of 2 ETH.
NDOL retains its value against trading by seizing the long and short traders' collateral when price volatility occurs, and by natural price appreciation when prices rise.