NAVA.FINANCE
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FAQ
Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions, and taking note of the risks and responsibilities associated with participating in NAVA.FINANCE.
The team is available in the Telegram to answer questions, so please reach out if they're not answered here!
- Telegram: https://t.me/NavaREI

Why NAVA.FINANCE

Why have a token that’s pegged to the price of REI when you could just use REI itself instead?
If NAVA succeeds in holding the peg, this will create a mirrored, liquid asset that can be moved around and traded without restrictions, all while benefiting from the price appreciation of the native REI token. Reaching the peg and holding the peg is crucial, and this will ultimately be what drives the value of NAVA for investors. In the short term, this would mean attractive APRs for liquidity providers on what would essentially be a stable pair.
So, once a liquid market is the norm, what happens next? What are some other reasons you’d want to hold NAVA?
NAVA aims to become the primary utility token of the REInetwork ecosystem, development and deployment of the next projects will be decided by those who hold NSHARE.Oh, and we’re just getting started.

1.“I keep seeing that NAVA will solve REInetwork liquidity issues, but I don't fully understand what that means or its implications.”

You may have read that by pegging to REI, NAVA hopes to become a highly liquid, mirrored asset. What does this actually mean though?
As an example, say the dollar is the world's main medium of exchange. Everything is measured in terms of dollars, whether that's your weekly salary, or whether it's the price of bread or a computer. And you need dollars to buy literal gas to get to the bakery, or to the computer store.
But imagine if nobody wanted to use their dollars, and preferred to keep them under their mattresses instead. Since the value of everything gravitates in relation to the dollar, there would need to be something out there that is 1:1 "interchangeable" with the dollar, so that even if all the dollars in the world were tucked under mattresses, people could continue to transact freely.
Knowing that whatever they received would be able to be traded in for a dollar at whatever point in time they so desired. That's what NAVA hopes to become for REI.

Getting Started

1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”

The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.
If NAVA is OVER the peg:
-Buy NAVA and pair it with REI to provide liquidity, and stake your NAVA-REI LP in the Farms to earn NSHARE rewards.
-Take your NSHARE rewards and stake them in the Boardroom to earn inflationary NAVA rewards.
-Sell half of your earned NAVA for REI, and compound it back into the NAVA-REI LP.
-Profit!

If NAVA is UNDER the peg:

1.Buy NAVA and exchange it for NBOND. If you are LP'ing, you can break the LP to exchange NAVA for NBOND, and use the remaining REI to buy NAVA to also exchange for NBOND. Now you have a big fat bag of NBOND, and you've also helped bring NAVA back above peg so that the Boardroom can resume printing.
2.Sell NBOND for a redemption Boardroom once NAVA is back over peg (above 1.1 TWAP).

2. "What is 50/50?"

50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps NAVA stay above the peg for longer to keep the Boardroom printing. This, in turn, attracts new investors and keeps the ecosystem growing.
1)When you claim your NAVA rewards in the Boardroom, sell 50% of them for REI.
2)When you go to provide NAVA-REI LP, stake the entirety of your remaining NAVA with the REI you've just purchased.

3.“There's so many auto-compounding vaults, what should I do?”

If you are in a NAVA-REI LP auto-compounding vault, you are creating buy pressure on NAVA. If you are in a NSHARE-REI LP auto-compounding vault and you also hold NSHARE elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling NSHARE.
(Please Note: Always proceed with caution. We DO NOT recommend putting more than 5% of what you are staking on NAVA into a single auto compounder. Defi involves significant risks and users should manage risks accordingly. For example, users should only put in what they are willing to lose. DO NOT invest your life savings and do your homework before getting active in Defi.)

4. "APR is much higher in the Boardroom than in the Stake for NAVA-REI LP. Why would I not just invest everything there?"

The Stake APR is linear and prints 24/7, regardless of NAVA's relation to the peg. Boardroom, on the other hand, prints only when NAVA's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Boardroom than from the NAVA-REI pool. Because NAVA follows the price of REI, the NAVA-REI LP is akin to holding REI in your wallet, except with the Boardroom of a high farming APR on top of it. In other words, if you're bullish on REI's price action, the NAVA-REI LP is a way of holding exposure to that single asset while also reaping high APRs.

Terms and Mechanisms

1. "What is an expansionary epoch?"

An expansionary epoch is the amount of NAVA that is printed by NSHARE in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.

2. “What is compounding in the context of NAVA.FINANCE?”

Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.

Boardroom

1.“Once Nbond are emitted, does the Boardroom stop printing NAVA until we are above peg again?”

Staking NSHARE will give you NAVA rewards when the price of NAVA is above the peg (1REI), but not when it is under the peg.

2. “What happens if I interact with the Boardroom in any way?”

Any interaction with the Boardroom will reset both timers. That's 3 epochs (18 hours) to withdraw your NAVA rewards, and 6 epochs to unstake your Nshare (36 hours).

3. “Are the Boardroom rewards pro-rated by time? I.e if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”

No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.

4. "If I remove my NSHARE from Boardroom without first collecting my NAVA, will it be lost forever?"

No, it will still be there to collect whenever you need.

5. "The Boardroom APR dropped because we're in a 'debt phase.' What does this mean?"

A debt phase takes place on the expansion epochs that start after a contraction period where there are still NBOND to be redeemed.
65% of Expansion during Debt Phase is allocated to the Treasury Fund to prepare for the NBOND Redemption. This amount is still reserved whether or not NBOND holders are redeeming bonds or not.
Once NAVA in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.

6. "If we're in a debt phase, how long will it last until Boardroom continues printing as normal?"

The debt phase will last as long as is necessary to adequately pay back outstanding NBOND debt. Please keep in mind that the NAVADAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem NBOND over peg. There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their NBOND. If the debt phase is ended too early, and then the treasury doesn't have enough NAVA to repay the NBOND Boardroom, then the APR restriction would need to be turned back on.

7. "At the end of the epoch, the Boardroom did not print NAVA, and then no NBOND(s) were issued in the BOND. Why?"

There is a balanced state "at peg" when NAVA's TWAP is between 1 and 1.01, and this means there is neither contraction nor inflation.

8. "If NAVA continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"

Depending on the price of NAVA, the Boardroom print will have to adjust to provide a buffer for any unclaimed NBOND. As the price of NAVA climbs above the peg, more NAVA needs to be distributed to the treasury to account for NBOND bonus redemption.

Stake

1.“What will happen when circulating supply = Total supply? Will emissions stop?”

Yes. Once the max supply of NSHARE (70K) is reached, emissions stop. This is going to be in a little less than a year from the time of writing this. NSHARE will always print NAVA in the Boardroom, though, as long as NAVA is above peg.

2.“Why is ‘at-peg’ (TWAP between 1 and 1.01) the best time to provide liquidity?”

When NAVA is pegged or close to being pegged to REI, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.

3. "Wait, you mean that if REI pumps, NAVA pumps with it?"

Yes!
Let's take an example:
If REI pumps in price, it won't 'outrun' NAVA.
The APR will vary in terms of its $USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the $USD value is directly tied to the emissions. If REI rises in $USD value, NAVA goes with it. Same if BCH falls in $USD value, NAVA will be worth less in $USD, but it won’t affect the peg. The only thing that can change the price of NAVA in terms of its REI value is buying and selling it.

Calculating Rewards

1. “How can I figure out what my future NAVA rewards will be from the Boardroom?”

Simplified example for a non-debt phase: say you have 1 NSHARE staked out of 10 total NSHAREs staked in Boardroom, so you will get 10% of the total NAVA emissions.
So, for this example we are assuming that there is a total circulating supply of 10,000 NAVA, the current expansion rate is at 4%, and therefore 400 NAVA will be emitted. You would get ((0.04 * 10000) * 0.8) * (1/10) = 32 NAVA. With current regulations, this is the distribution breakdown: -80% of printed NAVA goes to NSHARE stakers. -15% goes to NAVADAO-fund. - 5% goes to the devs.
Formula to calculate your rewards: ((ExpansionRate * CirculatingNAVASupply) * 0.8) * (YourNShareStake/TotalNShareStaked)

2. “How long will it take for Nshare to pay itself off from NAVA rewards, based on current prices?”

This will vary constantly as the APR in the masonry fluctuates, along with other variables such as the price of NAVA.
For a quick estimation, however, you can do the following:


1) Take the total APR shown in the Boardroom, and divide that by 365 to get the daily APR. (In this example, we will say the daily APR is 5%.)

2) Multiply that daily APR by the current market price of the total Nshare you have staked to see what your daily rewards are.(In this example, we have 5 Nshares, each worth $500, for a total amount staked of $2500. Your daily return is $2500 * .05, which comes out to $125/day.)

 3)Take your initial buy-in price for Nshares, and divide it by your daily rewards. If you bought these 5 Nshares at a higher price of $700, for example, in the current market conditions you will recover your initial investment ($3500) in 3500/125 = 28 days.

3. “Does a higher TVL mean a higher APR?”

The more TVL in the pool, the less APR (there's more people getting the same piece of the pie), but the higher the price of the reward (the pie) the higher the APR (better quality of pie). In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.

Core Values

1. “I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?”

Never put all your funds in one basket, even if it's NAVA. Always take gains along the way. The NAVA.FINANCE team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.

Contractions and NBOND

1. "When can I swap NAVA for NBOND?"

NAVA will only become available in the Pit following epochs in which the Time Weighted Average Price (TWAP) of NAVA is under peg. This means that NAVA's price will have had to have been under 1 REI for the majority of the previous epoch in order to trigger the Bonds to "open".
For example: If, during the previous epoch, the ratio of NAVA to REI had been 1.2 for 5 hours, but dipped to 0.9 in the final hour, the Bonds will not open, as the TWAP would be higher than 1. Conversely, if NAVA's price is at 0.9 that of REI for 5 hours, but spikes to 1.25 in the final hour, the Bonds will remain open during the following epoch, since the TWAP is less than 1.
The Bonds will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Bonds can not and will never open mid-epoch — and during epochs in which the Bonds is open, NAVA will not be printed in the Farms.

2. "What is the formula to calculate the redemption Boardroom for NBOND?"

To encourage redemption of NBOND for NAVA when NAVA's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, NBOND redemption will be more profitable with a higher NAVA TWAP value. The NBOND to NAVA ratio will be 1:R, where R can be calculated in the formula as shown below:
R=1+[(NAVAtwapprice)−1)∗coeff)]
coeff=0.7
To further illustrate why the longer you hold NBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy NAVA when NAVA TWAP is 0.95 and then swapped for NBOND.
If these NBOND are redeemed when:
-NAVA TWAP is 1.5, your investment would now be worth $2131.
-NAVA TWAP is 2, your investment would now be worth $3578.
-NAVA TWAP is 3, your investment would now be worth $7926.
-NAVA TWAP is 5, your investment would now be worth $20947.

3. "I expected NBOND to be issued in the Bonds, but there is none. Why?"

There is a balanced state "at peg" when NAVA's TWAP is between 1 and 1.01, and this means there is neither contraction nor inflation.

4. "When can I swap NBOND back to NAVA?"

You can swap it back again when the following two criteria are met:
1: NAVA TWAP is above peg and
2. There is enough in the treasury to cover it the redemption.

5. "Is NBOND right for me?"

Like anything else in crypto, obtaining NBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future. To date, this has occurred after all contractions, but past performance does not guarantee the same future outcomes. NBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, NBOND may not be the right investment option for you.

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On this page
Why NAVA.FINANCE?
1.“I keep seeing that NAVA will solve REInetwork liquidity issues, but I don't fully understand what that means or its implications.”
Getting Started
1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”
2. "What is 50/50?"
3.“There's so many auto-compounding vaults, what should I do?”
4. "APR is much higher in the Boardroom than in the Stake for NAVA-REI LP. Why would I not just invest everything there?"
Terms and Mechanisms
1. "What is an expansionary epoch?"
2. “What is compounding in the context of NAVA.FINANCE?”
Boardroom
1.“Once Nbond are emitted, does the Boardroom stop printing NAVA until we are above peg again?”
2. “What happens if I interact with the Boardroom in any way?”
3. “Are the Boardroom rewards pro-rated by time? I.e if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”
4. "If I remove my NSHARE from Boardroom without first collecting my NAVA, will it be lost forever?"
5. "The Boardroom APR dropped because we're in a 'debt phase.' What does this mean?"
6. "If we're in a debt phase, how long will it last until Boardroom continues printing as normal?"
7. "At the end of the epoch, the Boardroom did not print NAVA, and then no NBOND(s) were issued in the BOND. Why?"
8. "If NAVA continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"
Stake
1.“What will happen when circulating supply = Total supply? Will emissions stop?”
2.“Why is ‘at-peg’ (TWAP between 1 and 1.01) the best time to provide liquidity?”
3. "Wait, you mean that if REI pumps, NAVA pumps with it?"
Calculating Rewards
1. “How can I figure out what my future NAVA rewards will be from the Boardroom?”
2. “How long will it take for Nshare to pay itself off from NAVA rewards, based on current prices?”
3. “Does a higher TVL mean a higher APR?”
Core Values
1. “I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?”
Contractions and NBOND
1. "When can I swap NAVA for NBOND?"
2. "What is the formula to calculate the redemption Boardroom for NBOND?"
3. "I expected NBOND to be issued in the Bonds, but there is none. Why?"
4. "When can I swap NBOND back to NAVA?"
5. "Is NBOND right for me?"