Nolus in 2025: A Year of Excitement

Realigning Incentives

The early part of 2025 will see a substantial focus on implementing changes that create additional demand for the $NLS token. This will be done by way of creating additional features that are gated behind the amount of $NLS that a user has staked. These early features will be:

Interest Premium Fee & Discounting

Nolus plans to introduce a new interest premium fee applied to DeFi Leases. There is work currently done to understand the size of the premium that can be used while maintaining Nolus’ competitive advantage over other DeFi protocols.

Nolus will also implement a discounting model on this premium that is based on the amount of $NLS that the user has staked. The exact model for this discount model is also being worked on to reduce the ability for it to be gamed, but the premise will be that the greater the amount of $NLS staked by the user; the lower the interest premium fee charged to the user upon opening a DeFi Lease.

As a small aside, this may create some additional income for depositors in the Liquidity Providers’ Pool which will boost yield and potentially further grow TVL, supporting the Nolus flywheel!

Higher Leverage for Leases

Another benefit available to $NLS stakers will be the ability to open DeFi Leases at higher leverages, up to 5x! The current maximum leverage of 2.5x allows users to borrow 150% of their collateral in opening a DeFi Lease. Eligible stakers will now be able to borrow 400% of their collateral when opening a DeFi Lease; offering an extra 167% in borrowable capacity.

The Nolus core team will monitor this future to ensure that increased leveraging remains safe for all stakeholders. This feature will allow Nolus’ long-term stakeholders to generate even greater yields on their DeFi Leases. It will also result in higher interest income generated for depositors in the Liquidity Providers’ Pool boosting yields for depositors.

As can be seen, there is a large emphasis on organically growing the Nolus flywheel through increasing borrowed capital!

New Product Features

The combination of Stop-Loss Orders and Take-Profit Orders will allow Nolus’ users to manage their risk at a significantly more granular level.

Stop-Loss Orders

Nolus will introduce a Stop-Loss Order feature to support our users’ risk management. This feature, which is found on many spot trading and perpetual trading platforms, is designed to limit a user’s loss on an individual position.

For example, assume Alice purchased $BTC at $100,000 because she predicts that the price will continue to rise beyond that. However, she is only willing to accept a maximum 10% loss on this trade. Therefore, she creates a Stop-Loss Order at $90,000.

Should the price of BTC touch $90,000, Alice’s $BTC will immediately sold at the prevailing market price. This is different from a sell limit order where incremental amounts of $BTC would be sold only at $90,000 (meaning Alice may only have part of her $BTC sold).

The material risk with Stop-Loss Orders is a flash crash in the price of an asset that then sees an immediate rebound. While the overall price of the asset may have only reduced marginally over the duration, the flash crash may have resulted in Alice’s Stop-Loss Order being hit and her $BTC being sold subsequently lower than the price at either end of the flash crash.

Take-Profit Order

Take-Profit Orders are another type of risk management feature that exists to support traders. This feature ensures that a user can have their assets sold once the market price reaches a certain value. This means that the user can be assured of making a certain amount of profit (subject to market depth).

For example, when Alice purchased her $BTC above, she also created a Take-Profit Order at $120,000. This means that Alice’s $BTC will be sold immediately upon the price of $BTC reaching $120,000. As with Stop-Loss Orders, Alice’s $BTC would be sold at the prevailing market price. This is different from a buy limit order where incremental amounts of $BTC would be sold only at $120,000 (meaning Alice may only have part of her $BTC sold).

Continued Expansion

With the continued growth of the Cosmos ecosystem, there continues to be an abundance of opportunities available to Nolus in growing the number of assets available on Nolus as well as the liquidity hubs that Nolus has integrated.

This will include a focus on making new high-growth assets available on Nolus as well as a large focus on growing user interest in opening short positions on Nolus.

More information will also be released in due course in introducing Nolus’ newest liquidity hubs that will be integrated to provide the cheapest rates for its users.

Revamped User Experience

Nolus’ webpage will also receive a refresh! The core team has learned many lessons over the past year about what works for users and what shortcomings the webpage has. We hope that the new webpage will be more intuitive and provide users with a better experience.

Closing Thoughts

Our community can expect continued growth in the product layer at the start of 2025. There will also be continued attention toward increasing demand for the $NLS token by way of new features that favor stakers.