NetWorth

What is NetWorth (NETW)?

NetWorth (NETW) is an algorithmic floating cryptocurrency on the Binance Smart Chain that maintains a stable purchasing power and at the same time has a market-driven value. In simple words, NETW is an algorithmic stablecoin that maintains a floating market-driven price without the 1:1 dollar collateral backing.
NETW is different from other stablecoins as it is not directly pegged to the US dollar. Instead, each NETW token is backed by 1 BUSD unit in their treasury.
Now that you have understood what NETW token is, let’s dive into how to earn passive income using NETW tokens.

Staking

Staking is the profit distribution model of NetWorth.
When you stake NETW tokens to the staking contract, you will receive an equivalent amount to sNETW tokens. These sNETW tokens are profit accruing tokens. Through sNETW you will receive a portion fraction of profits.
Moreover, sNETW tokens cannot be transferred or traded, you can only hold them to earn profits. Thanks to NetWorth’s rebasing mechanism, holding sNETW is the most profitable as rebasing allows you to compound your yield. Most importantly, NETW does not rebase out of thin air, the rebasing is done after buying actual NETW units.
Put simply, rebasing is the process of minting new NETW tokens that are paid to stakers.
Here’s how rebasing works:
Say, there are 500k NETW staked and 500k sNETW distributed against them. Now, say the protocol makes a profit of $5k and uses this profit to mint 5k NETW. Now, there are 505k NETW against 500k sNETW. In this case, sNETW supply needs to increase. So, sNETW is rebased by 1%.

Bonding

A bond in the NetWorth ecosystem is a representation of your liquidity pool (LP) share.
To create a bond, you add liquidity to the NETW-BUSD dDEXX pool. Now, you have to trade your LP share for NETW. This is called bonding.
Bonding allows you to get more NETW tokens than you would get in the market. Yes, with your LP bonds you can buy NETW tokens at a discounted price.

How does NETW work?

As mentioned before, NETW is pegged with BUSD tokens in a 1:1 ratio. For each NETW token, there is a BUSD token held in the treasury.
To maintain a market-driven price, the tokens are burned and minted by the protocol based on price fluctuations. When NETW trades below 1 BUSD, some NETW units are removed from circulation and burned by the protocol. On the other hand, if NETW surpasses 1 BUSD, new NETW units are minted and sold in the market.
In short, the treasury always holds BUSD for each NETW token. This implies that NETW will not fall below its intrinsic value in the long term.
Also, as there should only be 1 BUSD for each NETW token, every time the protocol purchases or sells NETW tokens, there is a profit. How? Because the protocol either receives more than 1 BUSD for the sale or spends less than 1 BUSD on the purchase.
NetWorth also makes a profit by sending BUSD tokens to yield generators. They can do this, as the protocol requires a few percent of reserves no matter how bad the price difference is.
Initially, 90% of all profits are rewarded to stakers. The remaining 10% to the NetWorth DAO. The rewards are paid in NETW backed by BUSD units. This mechanism maintains a stable intrinsic value.
Think of NETW rewards like fiat money. You don’t want the value of your dollars to appreciate, instead, you always think of accumulating more dollars. The best part is that holding NETW will give you both, more NETW units plus the value of your NETW holdings will appreciate over time.

The bottom line

NetWorth has indeed a standout solution for maintaining a stable purchasing power that is immune to inflation. Moreover, the staking and bonding mechanism changes the way you multiply your earnings.
Last modified 1mo ago