What Is Nirvana prANA(PRANA)? Complete Guide & Review About Nirvana prANA

Nirvana prANA is a project which has negative interest, over-collateralized stablecoin loans with zero liquidation risk. They create a stable of the own which is pegged to the basket of stables making up the treasury.

The Nirvana protocol operates out in the open, with robust documentation, SDKs, and open-source code. Every component of the algorithm will be fully available & explainable for the community, as will every asset in the reserve.

Important Points Table Of Nirvana prANA

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What Is Nirvana prANA(PRANA)?

Decentralized stability Algorithmic wealth.

$NIRV and $ANA are the twin forces of decentralized currency. One stablecoin to unite them all. One store of wealth with a rising floor. The Nirvana protocol produces twin tokens with two distinct purposes, working in concert to build a sustainable, algorithmic store of wealth that supports a decentralized, superstable currency.

Store of value

Concentrates & diversifies stablecoin liquidity

– Decentralized, ultra low-risk, superstable currency

– A higher-order stablecoin with a delegated peg

Store of wealth

Stores wealth with its rising floor price and sustainable APY

– Algorithmic, metastable token

– A volatile, yield-bearing investment instrument with a reserve-backed rising floor price

Mission

Nirvana is designed to prevent hyper-inflation. It is an antidote to investment assets that boom sharply in price and then swing suddenly down from the heights. The protocol and its liquidity are oriented towards supporting the price of ANA (see the chapter on price support). This priority will result in modest appreciation, and modest APYs for stakers.

But the the value will be reserved to support the price of the token during market downturns. ANA is meant to be a low-risk investment that appreciates steadily and reliably. NIRV is meant to be an ultra-low-risk store of value — one that can absorb the de-pegging of individual stablecoins.

How the protocol works

The Nirvana protocol produces the NIRV and ANA tokens on the Solana blockchain. ANA is the first metastable token with a rising floor – a store of wealth with permanent gains, limited downside, and unlimited growth. NIRV is powered by ANA’s reserves. It is a decentralized superstable coin with low risk through its diversified backing.

Reserve-backed floor

Every token of ANA is backed by a diversified basket of stable tokens stored in a protocol-owned reserve. The protocol exposes a method to buy back and burn ANA tokens in exchange for their current floor price. At any point, a holder may sell ANA back to the protocol for the floor price. This policy limits potential loss.

Protocol owned liquidity

The protocol secures liquidity through acting as a rational agent participating in the open market. It offers to sell ANA tokens in competition with other exchanges. When buying from the protocol, instead of simply swapping ANA for another asset, the protocol mints new ANA and locks away the liquidity in a special-purpose AMM. This liquidity is permanently owned by the protocol, guaranteeing the floor price.

Rising floor

Permanent rising floor guarantees ANA will never sell below a certain price. The protocol invests its reserve surplus into raising the floor price. Extra funds are invested into rebalancing of the floor price of ANA. This process of raising the floor happens continuously with demand for the ANA token.

Staking rewards

The rewards for staking are in the form of prANA (pre-ANA). The prANA token entitles the holder to buy newly minted ANA token for the floor price. The profit is the difference of ANA token market price vs floor price. Nirvana’s reward system has a sustainable, infinite runway.

Why Nirvana now?

Low-risk investment.

ANA is a yield-bearing volatile token, and so comes with risk. But the risk is limited. A rising floor price sets a minimum price to the token. Any purchase of ANA comes with knowledge of how much can possibly be lost.

Ultra-low-risk store of value.

NIRV is a superstable token backed by a diversified reserve of stablecoins. It delegates its peg to these stablecoins, and is strengthened through this diversification. Given sufficient diversification, if a single stablecoin loses its peg, NIRV’s value remains held up by the rest of the portfolio.

Liquidity concentration.

NIRV & ANA de-fragment stablecoin liquidity into a single reserve and return that liquidity back to the ecosystem in the form of tokens with a diversified backing. Their diverse collateralization gives the tokens real value.

Risk speculation.

ANA is a speculative, risky token. It can be traded for gains & loss. This energy from trading is captured by the protocol to increase the amount of superstable NIRV. Demand for ANA translates into an increase in protocol-owned liquidity, which translates into a higher floor price, and ultimately more NIRV.