Formation, inspired by Alchemix, is a future-yield-backed synthetic asset and community DAO. Investors can deposit their stable coins to generate synthetic tokens which are anchored 1:1 with deposited stable coins. In the NAOS protocol, Formation is the entrance to Galaxy. If investors pledge their tokens for a period of time, they will receive more NAOS tokens. These pledged tokens will be used to supply liquidity to Galaxy.
Formation comprises of three main components:
Vault:allows users to deposit stable coins to generate synthetic assets (nUSD)
Transmuter:allows users to stake nUSD and transforms into deposited stable coins