The Yield‑Enhanced Layer: NUBX‑Y
NUBX‑Y is designed to make gold work harder. While NUBX tokens preserve value by holding a direct claim on vaulted gold, NUBX‑Y transforms those tokens into interest‑bearing instruments. At a time when yields on traditional savings products are low and volatility in digital asset markets can be high, a product that offers risk‑managed returns backed by real assets is an attractive proposition.
Mechanics of NUBX‑Y
Participation in NUBX‑Y is straightforward for qualified institutions and accredited investors. Participants stake their NUBX tokens into a yield pool, locking them into smart contracts for a specified term. The underlying tokens remain fully backed by gold, but they are no longer freely transferable while staked. This locked collateral is then utilised in structured lending programmes through our network of regulated partners.
Deployment through Regulated Lenders: Funds from the yield pool are deployed to non‑bank financial companies (NBFCs) and other licensed lenders who specialise in gold‑secured lending. These loans typically finance small‑ and medium‑sized enterprises or jewellery businesses in emerging markets where gold serves as a common form of collateral. The lending partners must meet stringent criteria for capital adequacy, governance and regulatory licensing. Each loan is over‑collateralised by gold or other high‑quality collateral to reduce default risk.
Interest Accrual & Distribution: The interest paid by borrowers accrues in the pool. Smart contracts periodically calculate each staker’s pro rata share of the returns based on the amount of NUBX contributed and the length of the staking period. At the end of each quarter, yields are distributed on‑chain to participants’ wallets in the form of additional NUBX tokens or, in the future, stablecoins. All distributions and performance metrics are recorded and viewable on our transparent dashboard.
Yield Parameters
The expected yields from NUBX‑Y are dependent on market conditions, interest rates and borrower demand. However, our conservative approach focuses on preserving capital while generating moderate returns. Typical ranges are:
| Parameter | Description |
|---|---|
| Underlying Asset | LBMA‑certified gold held in custody |
| Lending Partners | Licensed NBFCs and financial institutions |
| Expected Yield Range | 2.5–5.0% per annum |
| Payout Frequency | Quarterly distributions |
| Collateral Model | Over‑collateralised via physical gold or tokenised receipts |
These ranges are illustrative; actual returns will be published at the end of each period. Our aim is to provide returns competitive with other low‑risk investments while maintaining the security of physical gold backing.
Risk Management
Yield is never risk‑free. To protect participants, we implement multiple layers of risk control:
- Regulatory Oversight: Lending partners operate under licences from regulators such as the Reserve Bank of India (RBI), the ADGM Financial Services Regulatory Authority or equivalent bodies. This ensures that lending practices comply with local laws and prudential standards.
- Audit & Reporting: Cash flows from borrowers are traced and audited. We publish regular statements verifying that interest payments match distributions. This transparency allows stakers to assess the health of the pool.
- Collateral Management: Loans are over‑collateralised and can be liquidated if a borrower fails to meet obligations. In such scenarios, collateral (often gold) is sold to repay the pool. This mechanism seeks to protect principal.
- Smart Contract Controls: Stake and withdrawal functions are controlled by audited smart contracts. Timelocks and emergency pause features protect against unexpected vulnerabilities.
Institutional Applications
NUBX‑Y is not a retail savings product. Rather, it is a sophisticated tool for treasury managers, asset managers and sovereign entities. Use cases include:
- Treasury Yield Enhancement: Banks or corporates with gold reserves can earn yield while maintaining exposure to the metal.
- Collateralised Lending Pools: Fintech platforms and DeFi protocols can integrate NUBX‑Y into their lending markets, offering collateralised borrowing at lower risk levels.
- Sovereign Gold Programme: Central banks interested in digitising part of their reserves may use NUBX‑Y to earn modest returns on gold holdings within a compliant framework.
By aligning incentives across lenders, borrowers and investors, NUBX‑Y creates a virtuous cycle where real‑world credit is financed by digital assets with proven collateral. This interplay between on‑chain and off‑chain finance forms the cornerstone of our ecosystem.