nvYLDS Deep Dive

nvYLDS is NUVA’s flagship stablecoin vault, offering a secure, permissionless, and liquid way to earn institutional-grade yield. Backed by YLDS, the first U.S. SEC-registered yield-bearing stablecoin security, nvYLDS delivers unmatched transparency with 100% on-chain proof of reserves and the efficiency of continuously compounding yield. With no lockups, and composable tokens, nvYLDS is designed to integrate effortlessly into DeFi strategies, empowering users to unlock institutional-grade opportunities in a crypto-native format.

Quick facts

  • Minimum Deposit: 1 USDC

  • Chains Supported: Ethereum (more chains to follow)

  • Token Standard: ERC-20

  • Liquidity Options: 24/7 minting and withdrawals on NUVA, as well as trading on decentralized exchanges (DEXs)

  • Redemption Periods on NUVA: Instant for most withdrawals; larger amounts may take up to 2 U.S. business days

  • Target APY: ~4% (SOFR minus 35 basis points), compounded continuously.

What is YLDS?

YLDS is a yield-bearing stablecoin issued by Figure Certificate Corporation (FCC) and registered with the U.S. Securities and Exchange Commission (SEC) as a transferable digital face-amount certificate. It is backed by prime money market funds, including U.S. Treasury bills and cash equivalents, offering a safe and transparent way to earn yield.

  • Regulatory Oversight: YLDS is subject to SEC reporting requirements, including audited reserves and asset composition disclosures.

  • Custody and Transparency: Reserves are held in custody by UMB Bank NA, audited by KPMG LLP, and reported quarterly to the SEC.

  • Yield: YLDS pays an interest rate of SOFR minus 35 basis points.

  • Permissioned Access: As a regulated security, YLDS is permissioned, meaning access and transfers require KYC (Know Your Customer) verification and whitelist approval.

For more details on YLDS, visit ylds.com.

What Is nvYLDS & Why Does It Stand Out?

nvYLDS is NUVA’s flagship stablecoin vault, designed to provide permissionless exposure to YLDS in a composable, crypto-native format. When you deposit USDC into the vault, nvYLDS tokens are instantly minted to your wallet. These tokens represent your proportional ownership of the vault and grow in value as the vault generates yield from the underlying YLDS.

nvYLDS’ total assets and token supply adjust with each participation; you are not buying from a fixed inventory. Vault‑level returns are reflected in the nvYLDS token price over time, representing your principal plus accrued yield.

nvYLDS offers unique benefits that set it apart from other tokenized U.S. Treasury-based funds and DeFi yield products:

  • Permissionless Access: Unlike YLDS, nvYLDS removes barriers to entry by providing permissionless, one-click access to the vault.

  • Verifiable Transparency: nvYLDS is overcollateralized with 100% on-chain proof of reserves. You can verify holdings 24/7 via on-chain proof of reserves on the Provenance Blockchain.

  • Composability: As an ERC-20 accrual token that is composable, nvYLDS can seamlessly be deployed into DeFi strategies such as lending, stripping, and leverage looping.

  • Instant Liquidity: Deposits are processed instantly, and withdrawals are typically completed within minutes, with larger withdrawals taking up to 2 U.S. business days.

  • Boost Your Earnings with NUVA Points: You earn NUVA Points by participating in the nvYLDS vault, which will play a key role in NUVA’s token allocation at the TGE (Token Generation Event).

How to Deposit and Withdraw

  • Deposits: You can deposit USDC into the nvYLDS vault on app.nuva.finance. Upon deposit, nvYLDS tokens are minted to your wallet - this is a non-custodial process.

  • Withdrawals: You can redeem nvYLDS tokens for USDC at any time via NUVA or access liquidity on supported DEXs. Withdrawals on NUVA are typically processed within minutes, though larger withdrawals may take up to 2 U.S. business days.

Risks

What are nvYLDS Risk Factors?

Participating in nvYLDS is subject to risks and users could lose money by gaining exposure to digital assets. Before depositing in nvYLDS, users should consider carefully the risks disclosed in NUVA’s Terms of Service and YLDS’ Prospectus.

What legal rights do the vault token holders have with respect to the underlying assets?

NUVA SPC Ltd., for and on behalf of the relevant segregated portfolio, has all applicable legal rights to the underlying assets in each vault. NUVA users do not have any direct claim against the underlying assets. nvAsset token holder rights are limited to the terms of the nvAsset token (i.e. the right to receive the applicable amount of USDC proceeds following its 'withdrawal' of its nvAsset token holdings). The Provenance Blockchain Protocol’s vault module defines a mechanism in the protocol whereby USDC is swapped-in to the vault and returns a commensurate amount of nvAsset token (and vice versa). The nvAsset tokens are ledgered on-chain as immutable and absolute representations of ownership.