Nunchi Unveils nLP Vault to Transform On-Chain Yield Derivatives

Nunchi has officially launched its nLP Vault, marking a significant milestone in the evolution of on-chain interest rate derivatives. As a central liquidity powerhouse for "yield-perpetual contracts" and the innovative "HIP-3" markets, the nLP Vault commenced its pre-deposit phase as of October 29 (local time). This launch underscores Nunchi’s commitment to advancing yield-focused solutions by leveraging cooperative efforts with Hyperbeat, the interest rate infrastructure hub built within Hyperliquid (HYPE). Currently, the nLP Vault’s pre-deposit phase is capped at $10 million, symbolizing its methodical approach to liquidity scaling.

Generous Incentives for Early Liquidity Providers

To incentivize early contributors, Nunchi has implemented an attractive reward structure that amplifies the benefits for initial liquidity providers. During the first week, participants in the pre-deposit phase will reap substantial returns, including a unique fivefold multiplier on rewards.

Liquidity providers will earn 1 cHIP point per dollar of total value locked (TVL) every day. These cHIP points serve as a pivotal tool in advancing the protocol’s core mission of revolutionizing interest rate derivatives and fostering its long-term growth trajectory.

Early participants of the nLP Vault will also benefit from multiple reward streams, including:

• Base deposit yield, designed to offer competitive passive returns.
• Partner points, which further expand earning potential.
• Fee shares from the forthcoming HIP-3 market, bolstering direct involvement in Nunchi's ecosystem.

All deposited assets are strategically optimized for risk-adjusted "real yield," employing Hyperbeat's robust mechanisms, including hbUSDT, to ensure sustainable yield generation.

Receipt Tokens: Automated Yield Growth Through wnLP

The operational framework of the nLP Vault introduces an automated compounding mechanism through its "wnLP" receipt tokens. When users deposit assets into the vault, they receive wnLP tokens representing their deposits along with accrued interest. Unlike traditional methods, interest earned is automatically integrated into the tokens’ value, allowing users to observe their wnLP holdings increase over time without manual intervention.

Looking ahead, Nunchi plans to amplify the utility of the nLP Vault by enabling composability with Pendle (PENDLE). This forthcoming integration is expected to unlock additional opportunities for vault users, empowering them to mint Principal Tokens (PT) and Yield Tokens (YT). With these tokens, participants can access fixed-income streams or engage in advanced yield strategies. This aligns with Nunchi’s vision of making on-chain yield ecosystems increasingly versatile and accessible.

A Vision Redefining On-Chain Yield

Nunchi has articulated a bold vision for its yield derivatives ecosystem. Highlighting the mantra "Perps for Yield," the team aims to establish a comprehensive, seasonless yield hub where participants can consistently unlock lucrative opportunities. This launch signals a transformative step toward redefining on-chain interest rate derivatives, combining innovative liquidity mechanisms, reward systems, and composability with existing yield protocols. Nunchi invites yield enthusiasts to join this dynamic ecosystem and play a vital role in shaping the future of decentralized finance.