Nirvana – A Protocol Design for a Sustainable Store of Wealth

What is Nirvana?

Nirvana is a decentralized reserve currency on the Solana network. The platform’s native token is ANA. The token is defined by a degree of stability that makes it ideal as a store of wealth. The Nirvana protocol is a fully decentralized, trustless, and autonomous protocol. It has open-source code, robust documentation, and SDKs.

A unique Automated Market Making (AMM) design inscribes the rising floor price of ANA into its liquidity concentrations. This ensures the floor price buy-back guarantee of every token in circulation and instills intrinsic value into the token. ANA is the first decentralized token backed by a rising floor. With this, Nirvana is creating a sustainable store of wealth that bridges the gap between pegged stability and free-floating value. 

The Core Principles of Nirvana 

Nirvana prioritizes sustainable growth with low volatility. The three core values of the platform are:

  • Fairness – They are committed to a fair launch, no IDO, and transparency.
  • Sustainable – ANA is built to be a long-term store of wealth.
  • Universality – the Nirvana protocol was designed to ‘play well with others.’ 

All of this also informs the primary purpose of their unique token — to provide a sustainable pathway to store and grow wealth. ANA bridges the gap between the extreme volatility seen in the crypto market and tokens that act as a store of value without adding to wealth, like stablecoins.

How Does Nirvana Work?

The Nirvana protocol developed an innovative and unique mechanism for its ANA token. The platform upholds a diverse collection of reserve assets that support the value of ANA. This gives ANA tokens ave intrinsic value guaranteed by the protocol’s reserves. As the reserves grow in value, the protocol will algorithmically increase the intrinsic value of the token. This increase is almost equal to raising the floor price. Thanks to this unique mechanism, ANA holders enjoy permanent gains. In the future, once the floor rises, it will never recede, and established gains are again locked in forever. 

Whenever a user purchases ANA tokens from Nirvana, the protocol automatically mints the corresponding amount of new tokens. These are either available instantaneously or vest linearly for the user. Further, the protocol’s optimized AMM algorithmically sets the price of both time-released ANA and instant spot ANA. 

What Does Nirvana Offer?

In a world filled with impermanent loss, Nirvana promises permanent gains — a key differentiator from other platforms. An essential reason for the permanent gains is its ANA token, which is not just a store of value, but a store of wealth, too. The token is backed by a reserve treasury which grows consistently over time. On top of that, Nirvana is built for sustainability. Thanks to their efficient solution to protocol-owned liquidity, the network has endless upside.

Protocol-Owned Liquidity

The concept of owning liquidity is highly significant for the team. The platform has protocol-owned liquidity at the center of its algorithmic design. The Nirvana protocol guarantees permanent liquidity for the ANA token, and the assurance for permanent liquidity arises from the way the Nirvana protocol owns its liquidity. What’s more, the significance of the protocol-owned liquidity model can be seen in how it dramatically contrasts with legacy models which unfairly incentivize market makers to deploy capital and maintain sufficient liquid. 

Future Plans of Nirvana 

Nirvana threads the risk-reward needle with its revolutionary mechanism. Simply stated, the ANA token can never go down too far nor grow too fast, and it will always maintain value, giving token holders freedom from the boom and bust cycles. In addition, the ANA token is designed to appreciate smoothly and perpetually – a key market differentiator.

The goal of the Nirvana team is to build a sustainable engine for algorithmic wealth. Furthermore, their engineering team is tirelessly working towards designing and testing a collection of new features for the product. The team is also planning to release a demo of the app in the very near future. The network is thus working actively to build the future of sustainable wealth on the blockchain.