Introduction

We are thrilled to announce that Nova will be curating the launch of $NSTR, the governance token for Nostra, a crypto super app and project on Ethereum's Layer 2 network, Starknet.

Nostra has emerged as a pivotal DeFi application. At the heart of Nostra’s mission lies a clear and inspiring vision: to provide a seamless and dependable DeFi experience that transcends barriers, regardless of one's technical proficiency. This vision extends to crafting an integrated suite of products for DeFi, where each element seamlessly integrates, thereby democratizing decentralized finance for all.

In this research, we will deep-dive into and guide the user through the ecosystem that the Nostra Team is creating, providing insights into how each component is designed to interact seamlessly.

Vision and Product Suite

Nostra's mission is to drive widespread cryptocurrency adoption by providing innovative and user-friendly DeFi solutions. Each product under Nostra's umbrella is meticulously designed to address specific needs within the crypto landscape:

• Nostra Money Market offers users a flexible mechanism to earn interest on their digital assets, facilitating the productive use of idle tokens.

• Nostra Pools / Swap is a decentralized exchange (DEX), enabling users to swap tokens efficiently, which is fundamental for maintaining liquidity and market health.

• UNO is a reserve-backed USD stablecoin native to Starknet, that is built on the successful models used by prominent stablecoins like $USDC and $USDT.

• Nostra Liquid Staking (nstSTRK) allows STRK token holders to participate in network security while gaining liquidity, thus enhancing user engagement and network stability.

• Nostra Bridge (coming soon) connects Starknet with more than 20 chains and provides users a seamless way to move assets from other blockchains into Starknet.

Through these products, Nostra creates a single place where a user can execute all the essential actions in DeFi. As of today, Nostra Finance accounts for over $275 million in Total Value Locked (70% of Starknet's entire TVL). Nostra is also among the top 100 DeFi Protocols across all chains.

Team

At the heart of Nostra Labs' innovation and strategic direction is a dynamic team of 13 professionals. These specialists cover areas like product development, research, marketing, business development, and operations. Their backgrounds include stints at reputable organizations such as the Ethereum Foundation, Goldman Sachs, Microsoft, Morgan Stanley, and Polygon.

Core Team Members

• David Garai (LinkedIn Profile, Twitter Profile) the Founder of Nostra Labs, steers the company with a strategic, financial, and operational focus. His vision for Nostra is grounded in accessibility and user-centric innovation, aiming to integrate various DeFi services seamlessly, akin to assembling Lego blocks.

• Đorđe Mijović (LinkedIn Profile, GitHub Profile), Co-founder of Nostra, oversees the technological developments of the platform. His experience as a core Solidity compiler developer at the Ethereum Foundation brings a critical edge to Nostra’s technological advancements, ensuring that the platform not only meets but exceeds the modern DeFi user’s expectations.

• Richard (LinkedIn Profile, Twitter Profile), Head of Product at Nostra Labs, is charged with delivering products that resonate well with users.

VCs and Backers

Nostra has raised capital through three investment rounds:

• A Seed Round amassing $1.95M, with the participation of Lemniscap, GSR, Wintermute, Tomahawk.VC, LAUNCHub, and other VCs in June 2021

• A consequential Private Round, securing $3.95M from Jump Crypto, Distributed Global, LAUNCHub, and other VCs in September 2021

• A minor round (0.1% of the supply), exclusive to Starkware Inc., also in September 2021

A 4.75% portion of the supply has been reserved for $TEMP holders, the token relative to Tempus DAO, who initiated the development of Nostra.

Unveiling Nostra's Powerhouse Products: A Deeper Dive

Nostra's position in the market is to be a one-stop shop that offers all the products designed to empower users and unlock the full potential of their digital assets. Nostra aims to capture the value of the likes of Aave, Uniswap, Maker, and Lido, combined into a single protocol with strong flywheel effects, and an improved user experience.Let's dive deeper into each offering, exploring its unique functionalities and the advantages it brings to the DeFi landscape.

Nostra Money Market

At the heart of Nostra lies the Money Market protocol, a robust stack developed upon the foundations of well-established money markets (Compound, Aave, Euler Finance). Accounting for over 70% of the total value locked (TVL) in Nostra Finance, the Money Market protocol serves the dual purpose of depositing and borrowing, establishing a robust framework for asset management that meets the diverse needs of the typical crypto users. Depositors can enhance their financial productivity by placing idle assets into a lending pool, earning interest in return. These assets can be withdrawn at any time, or used to provide liquidity in other DeFi applications.

Conversely, borrowers can secure loans from these pools by using their own assets as collateral. If the collateral value falls below the required levels, borrowers face liquidation, which protects the pool’s health and ensures a stable lending environment. This dual functionality supports many user needs and strengthens the protocol’s economic foundation.

Nostra Money Market's robust growth is evidenced by its diverse asset pool and competitive APYs, reflecting a strong market presence. Major assets like Ethereum and USDC offer high yields, partly boosted by the DeFi Spring Campaign of Starknet, attracting substantial users and contributing to a TVL highlighting the platform's market strength and investor trust. Assets are categorized by risk, with mainstream and long-tail asset pools segregated to manage exposure and enhance resilience against potential defaults.

Nostra Liquid Staking

Nostra's Liquid Staking offers a pioneering solution for STRK token holders on Starknet, enabling them to earn staking rewards while maintaining liquidity for other DeFi activities. This allows users to earn staking rewards while retaining DeFi flexibility. nstSTRK seamlessly integrates with other Nostra products, like Pools and Money Market, unlocking a world of possibilities. The introduction of nstSTRK aims to capture a significant portion of the $951 million worth of idle STRK tokens on Starknet, providing an essential service that leverages this untapped potential. With Starknet's current circulating market cap at $1.75 billion (as of June 4th, 2024) and the liquid staking solutions (LSD) for Ethereum accounting for about 10% of its circulating supply, nstSTRK holds considerable growth potential in the burgeoning Starknet ecosystem.

Nostra Pools

Nostra Pools goes beyond a typical decentralized exchange. It employs advanced Automated Market Maker (AMM) designs, ensuring efficient trading of various assets with minimal slippage. This translates to a seamless trading experience for users, regardless of their chosen asset. But what truly sets Nostra Pools apart is its synergy with the Money Market. Nostra wants to allow Lenders to be able to leverage their deposited assets to earn additional yield by providing liquidity to the pools using their collateral tokens.

Nostra UNO

UNO is the first native stablecoin on Starknet: it offers a US Dollar-pegged solution for users seeking stability in the often-volatile crypto market. UNO maintains a 1:1 peg with the US Dollar through a sophisticated Peg Stability AMM. Nostra UNO caters to both institutional and individual users. Features like free minting and capped redemption fees make it attractive for large-scale operations. Additionally, UNO seamlessly integrates with other Nostra products, serving as a core asset for liquidity and transactions within Pools and Swap. Nostra is planning to launch its feature to mint UNO using cash reserves post-TGE for select institutional partners, with daily attestations, in order to compete with the likes of Tether and Circle.

Nostra Bridge

Nostra Bridge, a collaboration with Layerswap, tackles the challenge of interoperability between blockchains. The bridge's broad network support connects Starknet with over 20 blockchains, simplifying asset management and opening doors to a wider range of investment opportunities.

Roadmap

Nostra’s vision extends further. Recognizing the need for broader adoption and a real-world bridge, Nostra is actively shaping its future with three exciting milestones.

• Mobile App for Everyone: A user-friendly iOS app is a cornerstone of Nostra's roadmap, allowing users to manage finances and crypto assets directly from their smartphones.

• The Nostra Credit Card: It lets users seamlessly convert crypto holdings into fiat currency for everyday spending. It eliminates exchange complexities and brings DeFi closer to the real world.

• Launching the Nostra DAO: Nostra is committed to a truly community-driven protocol. The Nostra DAO launch signifies a crucial step towards 100% community governance. Nostra ensures the protocol aligns with the community's best interests by developing tools to empower token holders as decision-makers.

Nostra is poised to become a central hub for anyone navigating the exciting world of DeFi on Starknet, both as a participant and a decision-maker.

Tokenomics

Every rocket requires fuel to reach the stars, and for the Nostra project, that fuel is the $NSTR token, embodying the Web3 ethos right from its inception. The token's name was selected through a Twitter poll conducted by the Nostra community.

Holders of the $NSTR token will actively participate in the project's governance, influencing future developments on the Nostra platform and its strategic role within the Starknet ecosystem.

The total supply of $NSTR tokens is set at 100,000,000, distributed as follows:

• 26.2% (26,233,825 tokens) allocated to early-stage investors from seed and private funding rounds and holders of the $TEMP token.

• 23.8% (23,766,175 tokens) designated for team wallets, recognizing their ongoing contribution to the project.

• 25.0% (25,000,000 tokens) reserved for the Treasury - which will be governed by a DAO established post-launch - and for the token launch (up to 12%).

• 11.0% (11,000,000 tokens) set aside for airdrops to reward the most engaged users of the Nostra ecosystem, based on their activity and ranking on the project's leaderboard.

• 14.0% (14,000,000 tokens) earmarked for future airdrops. This allocation strategy is designed to ensure that the $NSTR token serves as both a reward and an incentive for those who contribute to and participate in the growth and governance of the Nostra platform.

A key detail is that all $NSTR tokens will be fully unlocked at the TGE, meaning there are no cliffs or vesting schedules for any participants. Regarding the 14% of the tokens that are earmarked for future airdrops, they are not immediately distributed but will remain under the control of the DAO and $NSTR holders. By unlocking the entire supply at the TGE, the intention is to concentrate market pricing dynamics at a single point in time, thereby helping to establish a market value that reflects the broader consensus on the project's worth. This approach aims to support a healthier, more stable market dynamic over the long term.

How to Get $NSTR Tokens

Users can acquire Nostra tokens in two primary ways: by participating in the token launch sale, interacting with the platform, and potentially qualifying for airdrops.

Upcoming Public Sale

The $NSTR token sale is set to launch on Fjord Foundry via a liquidity bootstrapping pool (LBP) on June 10th, with the Token Generation Event (TGE) occurring on June 17th. Up to 12% of the total token supply (coming from the 25% allocated to the Treasury) will be available for participants of the LBP on Fjord Foundry. Proceeds from the sale will be used to seed liquidity pools—half on Starknet and half on the Ethereum mainnet. Any unsold tokens from the initial sale will be transferred to the Treasury, which will determine their eventual utilization.

The primary goal of employing an LBP is to facilitate fair price discovery, allowing market forces to equilibrate and stabilize the token's valuation at an optimal level. Although the fully diluted valuation and circulating market capitalization may initially differ due to the undistributed future airdrop allocation, approximately 86% of the total token supply will be immediately available to stakeholders. This distribution strategy is designed by the Nostra team to mitigate the common scenario of price dumping following multiple token unlocks by early-stage investors, which can disadvantage retail investors purchasing at later stages.

Reward the early users

In recent months, Nostra has solidified its position as the leading project on Starknet, securing over $250 million in TVL and becoming the most successful dApp on the network. It is also one of the premier lending protocols across all blockchains. This significant user trust highlights Nostra's pivotal role in the ecosystem.

In recognition of the community's loyalty and contribution to its success, Nostra’s team has meticulously planned the token distribution to ensure fairness. Consequently, 25% of the $NSTR token supply is earmarked for airdrops to Nostra users, divided into an initial 11% and a subsequent 14% for future distributions.

User engagement on the Nostra platform has been meticulously tracked and is reflected in a publicly accessible leaderboard that aggregates Nostra points. These points are accrued through various activities such as lending, borrowing, liquidity provision, and referring new users. For detailed information on the points system and activities that contribute to the leaderboard, users can refer to the project’s wiki. Naturally, a higher position on the leaderboard not only increases the likelihood of receiving a more substantial portion of the current airdrop but also positions users well for potential benefits from future airdrops. Engaging in these activities can thus be beneficial for users interested in maximizing their chances over time.

Conclusion

Nostra has recently showcased impressive growth and adoption metrics, firmly establishing itself as the most promising project on Starknet. Should the project successfully execute its roadmap, it has the potential to notably enhance accessibility and user experience within the DeFi space. Additionally, the impending launch of the Nostra DAO represents a significant milestone, signaling the project's dedication to community-driven governance. With these developments, Nostra emerges as a project worthy of close observation for its transformative impact on Starknet and beyond.

⚠️ Disclaimer ⚠️ : Nova Research is an independent research entity and is not affiliated with any related organizations mentioned in the article. This report is not a paid promotion or endorsement and is conducted solely for research and informational purposes. Nova Research maintains strict adherence to its core principles of impartiality and independence in providing insights and analysis. Readers are encouraged to conduct their own research and due diligence before making any investment decisions or engaging with the mentioned entities.