Minting

What is Minting?

Minting is the secondary value accrual strategy of Nemesis DAO. When users mint NMS tokens, they are actually selling their assets in order to mint from the protocol.
Minting Actions are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the minter with terms for a trade at a future date. These terms include a predefined amount of NMS the minter will mint and the time when vesting is complete.
The bond becomes redeemable as it vests. I.e. in a 5-day term, after 2 days into the term 40% of the rewards can be claimed.
Minting is an active, short-term strategy. The price discovery mechanism of the secondary mint market renders mints discounts more or less unpredictable. Therefore, minting is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Allowing users to mint in such mechanism allows NMS to accumulate its own liquidity. Since Nemesis DAO becomes its own market, on top of additional certainty for NMS investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.