# Introduction

[Nectra](https://nectra.xyz/) is a decentralized borrowing protocol allowing users to borrow nUSD (Nectra USD) against [Citrea](https://citrea.xyz) BTC (cBTC).

The nUSD token is a soft-pegged USD stablecoin, over-collateralized with cBTC deposits. The Bitcoin collateral supports the floor price of the stablecoin through the ability to redeem nUSD for $1 equivalent of cBTC directly. Protocol arbitrage enforces a ceiling on the nUSD price.

When creating a loan, termed a "position", users select their preferred annual interest rate. The position's interest rate determines whether it is redeemed against during a redemption, with positions paying a lower interest rate being redeemed first.

The protocol implements partial and full liquidations to ensure that nUSD remains over-collateralized.

Nectra’s core lending and stablecoin protocol is immutable once deployed and entirely permissionless.

To join Nectra's community, follow Nectra on [X](https://x.com/nectraxyz) or join the [Discord](https://discord.com/invite/VwTXxJePSV) server.

The code for Nectra core can be found on [GitHub](https://github.com/nectra-xyz/nectra-core).