User Guide
Napier v2 is designed with curators—creators of markets and yield strategies. Their involvement ensures that even if the number of users and types of markets grows significantly, the administrative workload and costs aren’t shouldered by any one party, enabling the delivery of high-quality, efficient products to users.
Use-Case for Users
PT, YT, and other DeFi integrations enable users to access a wide range of use cases and revenue opportunities.
Fixed Yield
Lock in the APY of your yield bearing asset to remove uncertainty about future returns.
Euler Example: If you deposit 1000 USDC into Euler at a 4% APY, the rate might drop the next day, lowering your earnings. You can use Napier to lock in the 4% APY for a specific period (e.g., 1 year). Even if the Euler USDC pool drops to 2% APY, you'll continue earning at 4% for the remaining year—potentially doubling your yield compared to those who don’t lock in the rate
Ether.fi Example: If you hold 10 eETH with a 6% staking rewards APY. With Spectra, you can lock in this rate for a set period, such as three months. If the APY decreases to 2.5%, you'll still earn at the fixed 6% rate for the next six months.
Yield Trading
Ethena Example: If you believe the current 30% APY on a basis trading yield with Etena will rise, you can acquire YT-sUSDe (Ethena's yield bearing stablecoin). As the implied APY increases, you earn a higher yield than what you initially paid for those YTs.
Liquidity Provision
Providing liquidity in Napier v2 lets you earn from multiple yield sources, including:
Pool swap fees
Native yield from the yield-bearing token
Fixed yield from Principal Tokens
Napier Point
Incentives from third parties
This strategy allows you to earn extra yield on top of your yield-bearing tokens.
Discounted Assets
Principal Tokens (PTs) are created through yield tokenization and offer unique opportunities due to their discounted nature.
When using Napier v2, you receive Principal Tokens—assets with zero-coupon bond mechanics that guarantee a fixed return at maturity.
Example: With PTs at 21% APY with 1000 USDT returns 1210 PT-USDT, representing a claim on 1210 USDT one year later. Essentially, you're buying 1210 USDT at the price of 1000 USDC today, reflecting a fixed 21% return.
At issuance: 1070 PT-USDC is worth 1000 USDC. Halfway to maturity: Approximately 1035 USDC. At maturity: Redeemable for 1070 USDC.
Leveraged Fixed Yield
By using PT as collateral on lending protocols like Euler and Morpho, you can seek even higher returns or secure a higher fixed APY.
Example: Using PT-wstUSR at a fixed APY of 14% as collateral, you borrow USDC at a 50% LTV and then use that USDC to repurchase PT-wstUSR at the same price. This creates a position that yields a fixed APY of 21%.
Using Napier User Interface
Napier User Interface gives users access to the full suite of Napier’s functionality, allowing you to trade, fix yield and execute various yield management strategies through Napier and other DeFi protocols.
Vision: One Interface Does Not Fit All
Interfaces for Each Persona
Users can highly customize and use the Napier Interface based on their own risk preferences. Also, if the Napier interface isn't serving your needs, you're free to choose to use an interface provided by third parties.
Economic Rationality Allows for Multiple Endpoints
The Napier protocol is focused on revenue distribution to curators, while the Napier interface is nonprofit, ensuring long-term alignment with users and leaving space for others to build profitable products on top of Napier.
The Napier Interface is a Network Explorer
Neutral
The Napier Interface provides an unopinionated platform for various yield management strategies without bias. It will natively display all deployed markets that are verified on Napier Interface, presenting relevant data and trust signals to assist users.
Note also that any Mint/Trade/Pool pages will be accessible for any market if accessed with a direct link, except for some markets due to legal constraints.
If one accesses a page of a Mint/Trade/Pool that is not verified, one will have a warning.
About users' position:
All positions taken on Napier, through the interface or not, will be listed in the positions table.
If one has a position in a market that is not verified, a warning will be displayed in the user dashboard.
Accessible & Auditable
Auditable: Fully open-source with open-source SDKs for building specialized apps.
SDK, API and Self-Hosting: Fully open-sourced front-end and subgraphs, along with SDKs and APIs to assist with self-hosting.
Understandable: Aims to be easily understandable without making opinionated choices.
Usable: Allows any user to interact with all of Napier’s smart contract functionalities.
Resilient: Aims to minimize security and liveness assumptions.
Non-Profit
The Napier Interface is non-profit, ensuring long-term alignment with users and leaving space for others to build profitable products on top of Napier.
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