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Nexus protocol is a yield farming protocol on the Terra blockchain. It leverages Anchor protocol to offer a yield on the assets used as collateral on Anchor.



The main offerings of Nexus are vaults. These are smart contracts in which an user deposits an asset which can be used on Anchor as collateral (ex. bETH, bLUNA) and earns a yield through the following strategy:

  1. Nexus deposits the assets as collateral on Anchor
  2. Then borrows a safe amount of UST
  3. Finally, the borrowed UST are put back into Anchor on the earn side

The protocol aims to keep a constant LTV to avoid liquidation, so it rebalances the amount of UST borrowed as the asset price fluctuates. Depositing into a vault mints a nTOKEN (ex. nLUNA, nETH), which represents the claim on the collateral deposited into the vault. Holding a nTOKEN automatically accrues PSI reward into your wallet.


While you can get a yield just by holding nTOKENs, you can also put them into liquidity pools (paired with PSI) to earn trading fees and even more PSI tokens. It is also possible to provide liquidity for the PSI/UST pair.

Cross-chain functionality

Nexus currently also allows for deposit from the Ethereum blockchain, automatically bridging ETH to Terra.