Numun Overview

Simplifying DeFi Investments with Real-World Assets

Numun has been founded with the purpose of facilitating, supporting and promoting the development and adoption of blockchain-related technology and software for the Numun Ecosystem. Numun seeks to integrate the world of real world assets to the blockchain by supporting partnerships with applications that address the needs that have been identified for DeFi and TradFi integration.

Numun integrates different Partner Apps that enhance the utility of tokenized assets, improving the current state of this particular segment and with the objective of bridging TradFi and DeFi.

Numun.fi App

Numun.fi is designed as an easy-access application within the decentralized finance (DeFi) space, offering users a straightforward way to access a different seamless, borderless and permissionless tool for investing in real-world assets. This innovation is crucial in the DeFi ecosystem, where the integration of real-world assets has been limited.

The DeFi landscape has been evolving rapidly, but there remains a significant gap in tools that allow for simple, borderless and permissionless investment in real-world assets. Numun.fi solves this by offering a platform where users can easily swap their stablecoins for RWA tokens and stake them to earn rewards. This process is designed to be user-friendly, removing barriers that typically hinder the adoption of DeFi solutions.

Numun.fi's first use case focuses on nStables (stablecoins pegged to various fiat currencies) which open up a plethora of opportunities for DeFi investors. In future iterations, tokenizations of RWAs that align with the vision of the Numun Foundation will be incorporated.

Diversification and Portfolio Optimization

One of the key benefits of integrating real-world assets into DeFi through products like nStables is the potential for portfolio diversification. Diversifying investments across various assets can help improve returns and reduce volatility. In traditional finance, diversification is a widely accepted strategy for optimizing portfolio performance, and the same principles apply to DeFi.

By allowing access to different RWA tokens, Numun enables users to diversify their portfolios beyond the usual crypto assets. This diversification can help mitigate risks associated with the volatility of cryptocurrencies and provide more stable and predictable returns. For example, an investor can diversify their holdings by including nStables, thereby balancing the overall risk and return profile of their portfolio.

Numun's vision extends beyond stablecoins to include a range of tokenized real-world assets, such as stocks, bonds and other RWA. These future products will further enhance the opportunities for DeFi investors, providing access to a broader spectrum of asset classes within a decentralized framework.

Tokenizing real-world assets has the potential to revolutionize the DeFi space by bringing tangible value into the ecosystem. Tokenized assets can provide liquidity, transparency, and accessibility that traditional assets lack, allowing. DeFi investors with access to traditional financial instruments within a decentralized environment. This can enhance portfolio diversification, improve risk management, and provide new opportunities for yield generation.

The First Use Case: nStables

By partnering with nStables, Numun.fi enable users to engage in carry trade strategies, a well-known financial strategy where investors swap a low-interest rate currency from one country to another currency with a higher interest rate. This strategy aims to profit from the interest rate differential, known as the "carry." Numun.fi makes this strategy accessible within the DeFi space, allowing users to benefit from the same opportunities that have been available to traditional financial markets for decades.

The investor profits from the difference between interest rates, plus any appreciation in the investment currency. For example, if an investor borrows in USD at an interest rate of 7% and invests in ARS (Argentine Peso) at an interest rate of 50%, the profit would come from the 43% interest rate differential, assuming stable exchange rates.

Despite the potential of carry trade strategies, there is a noticeable lack of similar instruments within the DeFi space. Traditional financial markets have long offered a variety of tools for engaging in carry trade and other interest rate arbitrage strategies, but DeFi has lagged in this area. Numun aims to fill this gap by facilitating carry trade strategies within a decentralized framework. This not only democratizes access to these financial strategies but also enhances the diversity and robustness of DeFi portfolios.

Carry trade is a widely used strategy in global financial markets. According to the Bank for International Settlements (BIS), the global volume of carry trade transactions is substantial, with the forex market seeing an average daily turnover of over $6.6 trillion as of 2021. This high volume underscores the popularity and potential profitability of carry trade strategies.

Recent Performance of Carry Trade Strategies

In the first six months of 2024, certain fiat currencies like the Argentine Peso (ARS) and the Turkish Lira (TRY) have outperformed traditional investment instruments like U.S. Treasury bills (T-bills). For instance, during this period, the ARS and TRY offered significantly higher yields compared to the relatively low yields of U.S. T-bills. This has highlighted the potential for carry trade strategies to provide substantial returns, even in volatile economic environments.

Partner Program

Numun.fi has a Partner Program focused on protocols, products or even companies that wants to integrate nStables and snStables to bring yield of Real World Assets (RWA) to its users. This integration will have objectives to be reached each week and consequently, the partner will receive an incentive. The selection criteria to each Partner is based on Numun core values and its aligment with the ecosystem.

Disclosure

All information provided in these Documents is for informational purposes only and should not be construed as investment advice. You should not take, or refrain from taking, any action based on any information contained in these Documents or obtained via Numun. We do not make any investment recommendations to you or opine on the merits of any investment transaction or opportunity. You alone are responsible for determining whether any investment, investment strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance.