Common questions about Nucleus.
Yield by Default is the concept of earning yield by participating in an network supported by Nucleus. Users who bridge their assets can earn yield while exploring the network ecosystem for novel and unique applications.
Nucleus generates yield for ETH and BTC-based network assets from infrastructure-based DeFi primitives. Infrastructure-based yields remove user exposure to traditional market risks such as price-based liquidations, decreases in price leading to loss of capital, and impermanent loss. These yield sources can be viewed in Revenue Strategies.
No platform can be considered entirely risk free. The risks related to Nucleus platform are the smart contract risk (risk of a bug within the protocol code) and for ETH and BTC default yield, network risk (risks around the infrastructure of a network failing). Every possible step has been taken to minimize these risks as much as possible. Nucleus's codebase is public and open source and has been audited multiple times. Additional risk and security related information can be found in Security.
Nucleus leverages canonical network bridges as well as trusted third party bridging infrastructure including but not limited to LayerZero, Hyperlane, and more.
Yes Nucleus has been audited numerous times. Every application that Nucleus interacts with has also undergone multiple audits. More information around Nucleus's audit history can be found in Audits.
Once a user deposits their assets, they are deployed within the Nucleus implementation's pre-ordained strategy. The underlying assets are accepted into the Nucleus custody contract within the network that the deposit is made and deployed into strategies curated by the vault risk manager that may exist on the origination network or another that is connected to the strategy.
All Nucleus assets report an on-chain exchange rate that reports the value of the asset over time.
Yield automatically accrues to the asset via the exchange rate and is generated through the pre-set strategy.
When a withdrawal transaction is being made, a user first sets their withdrawal parameters.
They must then wait for the solver to pick up the transaction and execute the withdrawal within the deadline time period.
For more details on withdrawals, check here: https://docs.nucleusearn.io/nucleus-architecture/withdrawals
Nucleus assets maintain multiple assets and positions, so when users request a withdrawal in a specific asset, the solver often has to route assets across multiple DEX venues. Based on the output asset and amount, this swap price can vary.
For example, assume a user wants to withdraw WBTC. The max slippage is 1%. The vault may need to swap some LBTC into WBTC to fulfill this order, incurring 0.6% of slippage.
Since max slippage 1% >= 0.6%, the user only pays 0.6% (the max slippage was not hit).
But if the user’s max slippage was < 0.6%, the solver would not be able to fill the order, requiring the user to resubmit the request.
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