Native Earn FAQ

How is Native's Yield Generated?

• Funds deposited by users into the Native Credit Pool are utilised by verified market makers to perform atomic swaps, with margin protected by collaterals. These activities generate on-chain trading fees which constitute the yield.

Is the Yield Generated by Market Makers Sustainable?

• Like any other volume-driven yield product from DEXs and CEXs. Market maker yields are correlated with on-chain trading demand and activity. As long as there is a demand for on-chain transactions, the capital can continue to generate returns. Furthermore, Native has integrated with a majority of mainstream flow providers, including Binance Web3 Wallet, CoW Swap, OKX DEX, 1inch, Kyber Swap, Bitget Wallet, 0x, etc., ensuring that market makers consistently capture trading opportunities. Market makers also intend to deliver a base yield no less than the industry average.

What is Native's Track Record?

• Native V2 has been in continuous operation for over a year, reaching a historical peak TVL exceeding $60 million and processing nearly $25 billion in cumulative trading volume. The protocol has operated stably through multiple periods of extreme market volatility without any security incidents. Native has also established partnerships with leading industry players such as Buidlpad and Binance Web3 Wallet. On trading side, Native is partnering with most tier 1 trading venues, some notable names include: 1inch, 0x, KyberSwap, OKX DEX, Binance Wallet, Bitget Wallet, CoW Swap, etc.

Are market makers' activities safe? Are there any downside risks?

• Verified market makers are required to post major assets (such as ETH, BTC, and stablecoins) as collateral in order to utilize capital from the credit pool. In an extreme loss scenario, the market maker's collateral will be liquidated first to protect user principal.

How Do Market Makers Ensure the Safety and Stability of Their Trading Activities?

• Native protocol is the platform to onboard market makers. Verified market makers are strictly monitored by a comprehensive system to maximize safety and sustainability, covering their margin, exposures, KYB, etc. A liquidation system is also always in place for liquidating market maker’s collateral in automated / manual manners in extreme cases.

How is Yield Distributed? What is the Difference Between Fixed Earn and Flexible Earn Products?

• Flexible Earn Product: Upon deposit, users receive a corresponding LP token (wNLP). Yield accrual is reflected through the appreciation in the value of the wNLP token.

• Fixed Earn Product: Funds are locked for a predetermined duration. Upon maturity, users can withdraw their principal along with the fixed yield. Funds held in a Fixed Earn product that are not withdrawn upon maturity will be automatically transferred into the Flexible Earn product to continue generating yield.

Can I Withdraw My Funds Promptly?

• Within the Flexible Earn product, two withdrawal modes are supported: users may either withdraw assets instantly for a 1% fee, or initiate a standard withdrawal and receive assets without fee after a three-day processing window. Instant redeem capacity is subject to real-time pool liquidity.

Have Native's Smart Contracts Been Audited?

• Native's smart contracts have undergone audits by eight separate industry-leading security firms.

Does Native Employ Risk Control Mechanisms, and How Are They Implemented?

• Native maintains a comprehensive suite of on-chain monitoring and preventative controls. In the event of anomalies related to fund flows, PnL deviations, or other critical metrics, the system will automatically implement protective measures, including the temporary pausing of contract and platform activities, to maximize the protection of user assets.