Date: July 5, 2025–09:03:23 PM UTC

Incident: Unauthorized upgrade and exploitation of Neemo Finance’s nsASTR and nrETH deposit contracts, resulting in a loss equivalent to 182.6741 ETH + 166,027.12 USDC (post conversion). Mitigation: The Neemo app was transitioned into maintenance mode. The Neemo team collaborated with the Astar team to pause the dAppStaking module to prevent further loss.

Note: This incident was caused by a leak of the admin private key, not related to a code vulnerability That said, we would like to clarify that Neemo had undergone a peer audit and an audit by Hacken. The full audit report can be found here: https://hacken.io/audits/neemo-finance/

Root Cause

A private key associated with the upgrade roles of Neemo’s nsASTR and nrETH deposit contracts was leaked. This allowed the attacker to maliciously upgrade the DappStakingManager and StakingManagerL1 contracts — both of which held user deposits and handled LST minting.

Using the upgraded contracts, the attacker:

1. Drained all immediately available funds.
2. Minted a large volume of unbacked LST tokens (nsASTR and nrETH), which were then used to exploit multiple DeFi protocols by draining value through non-collateralized assets. We’ve been still actively investigating the root cause

Why Did This Happen?

The compromised key was managed via an EOA on a laptop dedicated exclusively to Neemo operations. We were aware that this setup needed to be upgraded, specifically to a secure multisig wallet with offline key management.

In fact, a transition plan was already in place. However, due to vault development priorities, the upgrade was postponed until after the voting sub-period.

At Neemo, we’ve always emphasized security first. But this time, internal priorities got in the way, and we failed to act fast enough. That failure is entirely on us.

Loss Analysis

nrETH:

• Immediate Drain: 106.93 weETH was withdrawn and swapped for 114.53 ETH via Uniswap. The attacker’s wallet still holds these funds.
• LST Minting: Unbacked 200 nrETH was minted, indirectly causing an additional loss of 24.5524 ETH through the Soneium protocol.

nsASTR:

• Immediate Drain: 4,121,754 ASTR tokens were extracted and bridged to the Soneium chain. These were swapped and deposited into “Untitled Bank” in exchange for ETH, which was bridged back to Ethereum mainnet.
• LST Minting: 200 million unbacked nsASTR tokens were minted and used to exploit major DEXes and the Untitled Bank protocol on Soneium. These attacks drained further funds. All ASTR funds converted into ETH extracted in this phase have since been deposited into Tornado Cash.

Attackers Addresses

• Address still holds ETH that was obtained by withdrawing weETH, and swapping it into ETH: 0xb750e3165de458eae09904cc7fad099632860b0f
• Address that nsASTR was minted to: 0x198b2c4e31186569de4f8058d4871534845bb299
• Address that nrETH was minted to (Compromised Address): 0x7e9b11d0aa215e0f1a7f62534c7c93fc340d493d
• Address that deposited into Tornado Cash and used it for mixing: 0x4ec65e4dbe6e53ee4938aef2b173b38763d3bc2b

Response and Mitigation

Beyond the immediate drain and minting of LSTs, the attacker submitted a withdrawal request to dAppStaking in an attempt to unstake all 204,283,546.036 ASTR staked through Neemo contracts.

To prevent further loss:

• The Neemo team coordinated with the Astar team to pause the dAppStaking module, halting the claim of an additional 26,783,546.036 ASTR that was set to unlock on the same day.
• Subsequently, an on-chain proposal was submitted and passed to redirect the unlocking 177,500,000 ASTR from dAppStaking to Astar’s on-chain treasury.
• This quick response prevented approximately 98% of additional ASTR potential losses from future token unlocks.

Next Steps Plans

1. Neemo is actively collaborating with leading blockchain security and forensics firms: Seal911, zeroShadow and Hacken to trace the attacker and monitor the flow of stolen funds.
2. A comprehensive reimbursement plan is currently being developed. Following an Astar governance vote, eligible users will be able to reclaim their funds. Additional compensation is also being considered for losses involving nrETH and usage in DeFi protocols.
3. Security Collaboration: Working with external security experts and partners to strengthen the platform’s defenses.
4. Re-enable operations gradually: Once we receive approval from the security experts on the fix and proper compensation plan, we will gradually re-enable deposits and withdrawals.

Community Statement

We would like to express our deepest gratitude to our users for their patience, understanding, and continued trust during this difficult time. The security of your assets and the integrity of the Neemo remain our top priorities.

Our team is working around the clock to investigate the attack, trace the stolen funds, and coordinate closely with the Astar Foundation, law enforcement, and leading security experts. We are fully committed to resolving this incident and restoring user confidence.

We are aware that the impact extends beyond Neemo, and that several DeFi users on the Soneium chain, especially those interacting with nsASTR and nrETH have also been affected. Please know that your losses matter deeply to us, and we are committed to implementing a fair, structured reimbursement plan.

We are are continuing forensic and legal investigation efforts. Transparent updates will be provided regularly.

We are especially grateful for the quick response and assistance from: Astar Foundation, Astar Main Council, Seal 911, zeroShadow, and Hacken

Thank you for being part of the Neemo community.

Neemo Finance is excited to introduce Soneium Genesis, a campaign hosted by top-tier Soneium projects, where you can provide liquidity and earn rewards once Soneium mainnet goes live. This initiative will provide nrETH/nsASTR and ETH/ASTR holders with new opportunities to actively contribute to the growth of the Soneium ecosystem.

Purpose: The Soneium Genesis Campaign allows users to earn rewards and points by providing liquidity of nsASTR/nrETH and the equivalent pair assets to partner DeFi protocols. This initiative incentivizes participation in Soneium’s ecosystem while fostering collaboration with various partner protocols, enhancing user benefits and ecosystem growth.

Earning Rewards/Points: The rewards from the Soneium Genesis Campaign can be redeemed from day 1, while the points earned are exchangeable for tokens after the participating projects during their respective Token Generation Events (TGEs).

Goal: The goal of the Soneium Genesis Campaign is to incentivize early adopters to actively participate in the ecosystem by providing liquidity to nsASTR/nrETH and paired assets through partner DeFi protocols. This initiative aims to enhance liquidity, foster collaboration with partner projects, and drive the overall growth and adoption of the Soneium protocol, ultimately strengthening its position within the DeFi space.

Duration: 16th-31st Jan (extended to 19th Feb)

About the Participating Projects

Campaign Partners

• Neemo Finance: Neemo Finance unlocks capital efficiency on Soneium with liquid staking and restaking for ASTR, ETH, offering users seamless interaction and yield.
• Ether.fi: Ether.fi provides liquid restaking token that rewards you more across DeFi. Ether.fi offers campaign offers Ether.fi Points as an extra reward for providing liquidity with nrETH.

Defi Partners (Alphabetical Order)

• BONSAICOIN: BONSAICOIN is a marketing token for Bonsai market (RWA). Real Bonsai trees link to the ecosystem, and it’s aiming to accelerate liquidity in the Bonsai market on Soneium. LP to the BONSAICOIN/nsASTR pool, and receive LP rewards & extra BONSAICOIN in return.
• Kyo Finance: Kyo Finance helps users maximize their capital with advanced DeFi tools, including leveraged yield farming and staking available for the ETH, ASTR token.
• Quickswap: QuickSwap is a next-gen DEX and DeFi ecosystem. Trade at lightning-fast speeds with near-zero gas fees. Access perps with up to 50x leverage.
• SoneX: SoneX is making it easy to swap tokens with speed and security, all while boosting liquidity and scalability within Soneium’s growing ecosystem.
• Sonus: Sonus is the Native ve3,3 DEX on Soneium Chain, shaping the Future of Trading and Liquidity.
• Synstation: SynStation is a Community-owned Prediction Market Protocol powered by AI agents to assist users. They scaled TVL over $1M on Astar and Ethereum for staking and point farming.
• Untitled Bank: Untitled Bank is creating a more inclusive financial space on Soneium, offering services like lending, borrowing, and leverage to everyone in the ecosystem including ETH, ASTR holders.
• Velodrome: Velodrome Finance is a next-generation AMM that combines the best of Curve, Convex and Uniswap, designed to serve as the liquidity hub for the Superchain. Users receive extra VELO tokens from Velodrome (via voting delegation) when users add liquidity to nsASTR or nrETH pools

Campaign Rewards

Users can participate in the campaign by:

• Supplying Assets: Deposit nrETH or nsASTR into the designated pool.
• Providing Liquidity (LPing): Add liquidity to the nrETH/nsASTR and the equivalent pair assets to the partner DeFi pools.

General Rewards

For nrETH

• 4.1% apr (2.91% staking apr + 1.22% restaking apr)
• Ether.fi 3x Loyalty Points (If you hold the nrETH you’ve minted, you’ll get only 2x multiplier)
• Neemo 3x Points

For nsASTR

• 20% apr from Neemo Finance
• Neemo extra ASTR rewards
• Neemo 3x Points

Defi partner’s rewards

On top of the general rewards, user will earn the each partner’s reward

※ Please note that the Neemo, Ether.fi point tracking ratio on based on nrETH and nsASTR amount, and liquidity pools is always changing. Points are given to the pool based on the ratio of our token (nrETH/nsASTR) to another token(s) in the pool. For that reason, the ratio of points given out is constantly changing. To compensate for less points, there may be a boost; please take all of this into consideration if you are trying to maximize points.

How to participate

1. Users prepare by ensuring they have nrETH/nsASTR or/and the equivalent pair assets for LPing in our parnter defis, ready for deposits.
2. Visit the Soneium Genesis page https://app.neemo.finance/genesis and select one or more projects.
3. You can deposit their assets into smart contracts provided by any of the 9 participating defi partner’s dApps, with the flexibility to add or remove tokens at any time
4. Once tokens are deposited, users begin earning each project rewards/points
5. Once the campaign starts: the rewards from the Soneium Genesis Campaign can be redeemed. After each participating dApp’s Token Generation Event (TGE), users can redeem the respective project points for incentives/rewards each project offers in future unlocking tangible rewards.
6. Visit app.neemo.finance/genesis to learn more and get involved in the Soneium Genesis campaign today. This is your chance to be part of the future of web3, powered by Soneium!

Conditions

Participants may be ineligible for the following reasons:

• Users with no active nrETH/nsASTR balance in their wallet or no active nrETH/nsASTR balance in partner protocols at date of snapshot
• Users who exited within 5 days of the end of this campaign
• Users with wallets that are part of a known sanctioned list
• Users who have actively been caught as sybils or attempting to manipulate the protocol or events to game the system
• Users who are linked to on-chain scams such as pinkdrainer
• Any attempt to exploit loopholes or manipulate the rules to game the system will result in disqualification of any campaign rewards, all your points on all accounts will be removed.

Visit https://app.neemo.finance/genesis to learn more and get involved in the Soneium Genesis campaign today. This is your chance to be part of the future of web3, powered by Soneium!

Connect with our partners

• Neemo Finance: https://discord.com/invite/Mv7a9sunXh
• Ether.fi: https://discord.com/invite/zqGzcuQWvD
• Velodrome: https://discord.com/invite/velodrome
• Avalon Labs: https://discord.com/invite/avalonlabs
• Quickswap: https://t.me/QuickSwapDEX
• Synstation: https://discord.gg/tpTtEfr3gS
• Kyo Finance: https://discord.com/invite/hZkhewnCPp
• Untitled Bank: https://discord.com/invite/hJCMCPfmrN
• SoneX: https://discord.com/invite/sonex
• BONSAICOIN: https://discord.com/invite/6yuGHKksWf
• Sonus: https://discord.com/invite/xX7EtE8xVp

Head to app.neemo.finance/genesis to participate in Soneium Genesis and earn your boosted rewards!

We’re proud to announce our partnership with Ether.fi.

Soon you’ll be able to:

Deposit: ETH, wETH, eETH, stETH, wstETH, and weETH on the Etherum mainnet, or ETH, wETH on Soneium. In return, you will receive nrETH on Soneium. By minting nrETH, you get the following benefits:

• Earn boosted Ether.fi Points and Neemo Points.
• Use your minted nrETH in Soneium DeFi protocols to earn their points and incentives.
• By minting and using nrETH within Soneium DeFi, you also increase your exposure to Soneium — effectively earning any points or rewards the platform offers to its users.

Read on to learn about your benefits, why we partnered with Ether.fi, and more. Let’s dive in. 🪂

Gateway for liquidity on Soneium — Neemo Finance

We’re not just building an LST/LRT protocol. We’re building an entire suite of DeFi products that help onboard users to web3 and further aid them in navigating DeFi. We aim to benefit all stakeholders in this partnership:

• Ether.fi: The protocol itself benefits from the profits Neemo Finance generates — in return for nrETH utilized across Soneium protocols.
• ETH, wETH, eETH, and weETH holders: All holders get unparalleled exposure to Soneium DeFi, rewards and incentives from partner protocols, and staking & restaking rewards. All of this — without having to manually bridge any asset anywhere and/or worrying about bridge fees.
• Soneium: The Soneium chain gets open access to ETH holders and the deep liquidity they bring. Currently, the combined market cap of wETH and weETH alone is $17.6B. Even a conservative 5% market capture will enable us to bring up to $850M worth of capital just from our partnership with Ether.fi!

But this is not all. We are carefully undertaking 2 strategies to fuel capital inflow on Soneium:

1. Become a liquidity gateway to Soneium from other web3 ecosystems through partnerships (like Ether.fi). This effectively makes Soneium the centre of degen capital and helps acquire a strong user base.
2. Offer a seamless DeFi experience through our curated product suite. Our upcoming offerings include automated Curator Vaults that offer automated LST/LRT management for users — all while accruing high rewards and points.

And we’re proud to share that we’ve already made significant progress in achieving both! While we’re just starting out, we’re confident that our product suite will propel Soneium to a leading Ethereum L2 in 2025 and beyond.

Why Ether.fi

ether.fi is the biggest LRT protocols in the market today. In fact, it is 8x bigger than its closest competitor 2nd — cementing its vast presence in the Ethereum restaking ecosystem.

Our partnership with Ether.fi is a testament to our commitment to provide our users with a seamless ETH staking experience. Soneium is one of the biggest Ethereum L2s, eyeing to further the $55B-worth Ethereum L2 ecosystem. Developed by Sony Block Solutions Labs, Soneium is designed to reach a much wider retail audience — all those who have been sidelined due to complex crypto UX so far. Neemo Finance plays a strategic role in helping onboard those billions of users — by effectively offering LST and DeFi solutions to our users.

How nrETH works

Minting nrETH is a seamless process that adapts to your preferred network. On Soneium, you can deposit ETH or wETH, which is batched and transferred to the Ethereum mainnet, where the ETH is staked on Ether.fi to receive weETH. Similarly, if you deposit ETH, wETH, eETH, weETH or other supported LSTs/LRTs directly on Ethereum, the assets are converted into weETH through Ether.fi, and nrETH is minted on Soneium. For Layer 2 networks, deposits of ETH, wETH are bridged to Ethereum in batches, staked on Ether.fi for weETH, and then nrETH is minted on Soneium. This streamlined multi-network process ensures accessibility and efficiency, allowing users to maximize staking rewards while benefiting from Soneium’s ecosystem incentives.

Withdrawing nrETH offers users flexibility through two options:

• standard withdrawal, and
• instant withdrawal.

In a standard withdrawal, users burn their nrETH on Soneium, and withdrawal requests are batched. Depending on the batch balance, either additional staking occurs, or excess funds are unstaked on the Ethereum mainnet and bridged back to Soneium for user claims after the unbonding period. Instant withdrawals, on the other hand, provide instant access to liquidity. By burning nrETH and paying a small fee, users can utilize Neemo’s maintained liquidity on Soneium to instantly receive ETH. Additionally, users can leverage DEX liquidity pools for swaps, enhancing withdrawal convenience across scenarios.

By depositing ETH and minting nrETH, users can navigate through the Soneium DeFi ecosystem effectively. All while earning base staking yield. Our partnership with Ether.fi signals a gateway for Soneium to acquire the degen audience and capital to Soneium. This is further fueled by the development of our suite of products for Soneium and beyond.

Upcoming campaign

We’ll soon announce our campaign. You can earn boosted points from Ether.fi and Neemo Finance! Furthermore, use your nrETH and nsASTR in Soneium DeFi to earn partner protocol points and incentives. On Soneium, our partners include Avalon Finance, QuickSwap, Velodrome, Kyo Finance, and more! Thus, with Neemo Finance, you can earn boosted points from every DeFi protocol we partner with.

Upcoming Features in Phase 2 (Feb-March)

Neemo x Ether.fi is preparing to launch exciting new features to enhance your nrETH experience:

1. Strategy Utilization: Neemo is preparing to optimize user deposits on Neemo Finance by depositing all funds into Ether.fi’s liquid vault. This ensures users do not miss out on Ether.fi rewards. While this integration increases the unbonding time, users can benefit from Ether.fi rewards while maintaining Soneium exposure through the nrETH liquid token. Note that the Ether.fi vault offers attractive yields but comes with associated risks, such as impermanent loss and liquidation. Read more here: https://app.ether.fi/liquid/eth.
2. Standard Withdrawal: The standard withdrawal process allows users to burn their nrETH on Soneium and claim ETH directly on the platform after the unbonding period. Users initiate withdrawal requests on Soneium, where all requests are batched and sent to Ethereum mainnet. The required ETH for the batch is calculated and unstaked from the Ether.fi vault. After unstaking, the weETH is converted to ETH, and once the unbonding period ends, the ETH is transferred back to Soneium via interoperability channels. The batch is then marked as finalized on Soneium, allowing users to claim their unstaked ETH. Please note: most steps in the standard withdrawal process are automated and managed by Neemo. Due to the batching and cross-chain transfers, the unbonding time may be slightly longer. From the user’s perspective, the process involves simply creating a withdrawal request and claiming ETH on Soneium after the unbonding period.

3. Staking from Soneium to Etherum Mainnet: Initially, all ETH/WETH deposits collected on Soneium were allocated for Instant withdrawal liquidity. In Phase 2, user deposits on Soneium will also be bridged to Ethereum mainnet and staked with EtherFi. This normalizes user’s deposit to EtherFi’s weETH, enabling vault deposits that enhance the APY for users.

How to get started

Our testnet will be live soon. Check back here or follow us on Twitter for realtime updates around our testnet.

We allocate 25% of our monthly dApp owner rewards for this campaign in a reward pool. Earn boosted rewards from this pool proportional to the amount you stake. These rewards can be claimed weekly! Each week, a new pool for the rewards is deployed on Monday. You can claim your rewards–proportional to your stake on that day. The more you stake, the higher your rewards! Only eligible for users who stake on the app. The official link to the app is this. 🚀

About 40% of $ASTR lockers (as of writing) on the dApp staking portal still haven’t staked their tokens! These users are missing out on several rewards. If you’re one of them, or if you want to enjoy boosted rewards from Neemo, your wait ends here!

Stake your $ASTR on the Neemo Finance app to earn:

• 20% APR from Astar’s dApp staking, and
• boosted rewards from our pool of 25% dApp owner rewards

More details and how you can maximize your rewards below. 👇

Video guide on how to participate in Winter Campaign

Eligibility Requirements

You’re eligible if you stake $ASTR on the Neemo app. You can stake on Astar EVM or Astar Parachain–both are eligible! Of course, those who unstake their $ASTR from the dApp staking portal and stake on the Neemo Finance app are eligible too. If you’re an existing staker, don’t worry. You continue to earn the 50% loyalty rewards each week. 😉

Why stake on us

We’re the fastest-growing liquid staking protocol on Astar Network. We’re also one of the biggest projects on Soneium and are a winner of Soneium Spark — a grants program by Soneium. But that isn’t the only reason why you should stake with us.

Rewards

By depositing into Neemo, you earn the same circa. 20% APR as staking directly through dApp staking portal. Additionally, you receive the following rewards:

• dApp staking owner revenue: Hold our Loyalty Badge NFT, and earn weekly rewards! Our stakers get up to 200 in $nsASTR per week — even for smaller tiers! We’ve seen a 100% increase in total rewards distributed in just 2 weeks! Check out this tweet.
• Note that Loyalty Badge NFTs are not distributed as part of the Neemo Winter Campaign. You can still purchase them via secondary markets or wait for our NFT distribution through other campaigns (this one, for example).
• Campaign Participation: Participate in campaigns like Spin&Earn for which we distributed 50K+ $ASTR! We’ll host more campaigns like these in the future.
• Rewards for nsASTR Operations: When Soneium mainnet launches, you’ll also earn rewards by utilizing nsASTR. We’ve integrated $nsASTR with most DeFi protocols approved by Soneium Spark, and you can already explore this on the Minato testnet. We’ve already integrated with Kyo, Sake, Sonus, and more integrations are coming soon!
• Boosted rewards from partners: Earn boosted rewards from our partnerships/integrations with fellow DeFi protocols when Soneium mainnet launches.
• Curator Vaults: You will be able to automate nsASTR management through Curator Vaults, along with incentives provided by the Curator. More on this coming soon!

Remember:

• We may introduce a staking cap once we start the campaign with Soneium. However, if you stake now, you can do so without being affected by the cap.
• This time, you won’t be eligible for Bonus Rewards from Astar Network. This is because we launched during the previous Build&Earn sub-period.

Super simplified UX

When you stake with Neemo Finance, you don’t need to manually restake your $ASTR. Your $ASTR gets automatically restaked during the subsequent Voting sub-period! Additionally, you can stake $ASTR directly from the Parachain through our app as well. Check it out here.

After Soneium’s mainnet launch, you can instantly withdraw between $nsASTR/$ASTR via DEX or the Rapid Withdraw pool. Additionally, with Curator Vaults, simply depositing your $nsASTR allows the Curator to manage operations for you, making it hassle-free and more! 👀

Security

Our smart contracts have been audited by the leading blockchain auditor Hacken who found 0 critical, 0 high, 0 medium, or even 0 low level security issues. You can check out our audit report here. Furthermore, we’ve also integrated SphereX, a real-time security platform that helps identify security threats in real-time.

Lastly, we have a loyal community of 10K+ users who actively use Neemo Finance and stake their $ASTR with us. Join our Discord, and ask them what they think.🙂

FAQs

Where are the rewards for Winter Campaign coming from?

We distribute 25% of our dApp owner rewards for this campaign. This is similar to our Loyalty Program, for which we have allocated 50% of our dApp owner rewards. But for this campaign, we distribute 25%.

How much can I earn from this campaign?

Your rewards are proportional to your stake weight in the reward pool. Those who stake a high amount, have a higher weight in the pool. Thus, they get higher rewards.

For example, say Adam stakes 1 ASTR. And Bob stakes 1000 ASTR. Bob’s rewards will be much higher as his pool weight is 1000x more than Adam’s.

Wait, do I get 25% boosted APY from this campaign?

No. Your rewards are subject to your stake weight in the pool. The more you stake, the more your weight in the pool. The more your weight, the more rewards you earn. Your rewards are directly proportional to the amount you stake in the pool.

Can I participate in Neemo’s Loyalty Program with this?

No, this is a separate campaign. We’re not distributing Loyalty Badge NFTs as part of this Winter Campaign. For that, you can either participate in ongoing campaigns or buy it off the secondary market.

I’m already earning rewards from the Loyalty Program. Can I still participate?

Yes, you can! If you stake your $ASTR on our app, you can earn from the reward pool based on your stake amount in the pool.

Is there a minimum staking requirement?

No, you can stake as much or as little as you desire. Your rewards are proportional to your stake weight in the reward pool.

When can I earn these rewards?

These rewards are claimable weekly. Each week, a new pool for the rewards is deployed on Monday. You can claim your rewards — proportional to your stake on that day. Since stakers will keep depositing their ASTR, your estimated weekly rewards will refresh dynamically.

That’s all for this one! If you have any questions/concerns, please join our Discord and ask away.

We’re proud to unveil the launch of our much-awaited mainnet on Astar Network EVM! Deposit your ASTR in our Timelocked Staking mode and get boosted rewards. Head to app.neemo.finance to begin your staking journey. Read to learn more about liquid dApp staking with Neemo Finance, our ongoing Loyalty Program, and how you can maximize your rewards!

Let’s dive in 🪂

Liquid staking revolution: Timelocked staking

When we first set out to build liquid staking for Astar Network, we discovered that most users weren’t aware of its intricacies (such as with Voting and Build&Earn sub-periods, Boosted Rewards et al.). This presented a novel UX problem, which we turned into an opportunity.

Most users don’t care about how the intricacies of dApp staking work. They care about their rewards when they stake their ASTR. Hence to make things easy for Astar users, we introduced Timelocked Staking.

Timelocked Staking mode allows users to deposit their ASTR with Neemo Finance for two combined sub-periods, netting them much higher rewards than normal staking. With this staking mode, you stake your ASTR for a specified duration (122 days). During that period, you receive:

• Staking Rewards, and
• Boosted Rewards

This nets you a total of around +21% APY. This is at par with the returns the most popular stock market indexes offer annually. The key difference? Astar dApp staking is accessible to everyone under the sun!

Timelocked Staking offers ease to stake as users only deposit once and receive their accrued rewards. Initiating withdrawal requests does not impact the staking rewards they are entitled to receive. With Neemo, you simply stake, receive rewards and relax! 😉

Loyalty Program

Our curated Loyalty Program is unlike most loyalty programs. It offers users real yield over any inflationary points. As Neemo Finance dApp accrues staking rewards on the Astar dApp Staking Portal, we distribute 50% of those rewards back to our stakers. Users receive these rewards when they stake their ASTR on Neemo Finance mainnet. The amount of rewards received depends on:

• the amount of ASTR staked, and
• the duration for which it is staked

Based on the above factors, users achieve tiers. The higher tier a user is at, the higher their share of the rewards. Additionally, we recently launched our Loyalty Badge Campaign and offered WL users these badges. Holders of these NFTs are also entitled to the staking rewards generated from Neemo Finance’s dApp staking. Read more about our Loyalty Badges here.

Building on Soneium

Our integration with Soneium enables users to mint nsASTR by depositing ASTR or wASTR directly on the Soneium mainnet. They need not worry about manually bridging their ASTR to Astar EVM as the entire process is taken care of by Neemo Finance contracts. This offers Soneium users a seamless experience to participate in Astar Network’s dApp staking.

Additionally, we strive to create utility for nsASTR by connecting with DeFi protocols building on Soneium. This means the day Soneium mainnet is launched, users can utilize their nsASTR in DeFi for unique yield opportunities.

Building a highly secure LST protocol

We prioritize the security of the Neemo Finance protocol and its contracts. To ensure that our architecture is an iron-walled fortress, our smart contracts are audited by Hacken, a leading blockchain security auditor. They recently published a report and reported 0 critical, 0 high, 0 medium, or 0 low severity bugs. This is a testament to our unrestrained focus on building a highly secure architecture.

Additionally, we have integrated SphereX, a real-time security monitoring system that tracks down malicious transactions. It aids in stopping/reverting malicious transactions even before they are executed, thereby keeping user funds safe. All parameters are controlled by the Neemo Finance protocol, and there can be no external influence.

Our contracts have also undergone several peer audits, bolstering their security.

Closing Thoughts

We’re excited at the opportunity to launch our mainnet and offer users to stake their ASTR in our Timelocked Staking mode for boosted rewards. All Loyalty Badge Holders will start receiving their rewards after all the remaining NFTs are distributed to mainnet stakers. Stay tuned for real-time updates by joining our Discord and following us on Twitter.

Stake your ASTR for boosted staking rewards from dApp staking!

Start your dApp staking journey with Neemo Finance here: <<app link>>

Executive Summary

Objective:

Distribute ASTR as nsASTR through Timelocked staking from Neemo dApp staking owner reward.

NFT Issuance:

Total 500 loyalty NFTs.

• 250 NFTs: The whitelist will be implemented with Starlay Finance, Walkmon, Arthswap, and BONSAI NFT CLUB, and these NFTs will be minted using Sonova on Astar zkEVM. Check out the mint page here: https://sonova.one/astar-zkevm/launchpad/neemo
• 250 NFTs: Reserved for ASTR stakers in Neemo Timelocked staking post-mainnet launch.

Minting Phases:

GTD (Guaranteed) Round:

• Amount: 200
• Schedule: Sep 2nd 12PM UTC- Sep 3rd 11:59PM UTC
• Users who participated in the Whitelist Campaign with the above partners and secured a spot will be able to mint their NFTs.

Public Round:

• Amount: 50
• Schedule: Sep 3rd 12PM UTC — Sep 4th 12PM UTC
• All wallet addresses will be eligible to mint on a first-come, first-served basis.

Schedule:

• Aug 20th-31st : NFT whitelist begins with the announced partners
• Sep 2nd 12PM UTC- Sep 3rd 11:59PM UTC: GTD (Guaranteed) round mint on Sonova
• Sep 3rd 12PM UTC — Sep 4th 12PM UTC: Public round round mint on Sonova
• Sep 2nd: Start distribution to the ASTR Time-locked stakers

Rewards:

• Distributed 4 times in each 30 days period
• During 2024: 50% from Neemo dApp staking owner reward.
• Post-2024: Additional sources including protocol fees, rapid withdraw fees, leveraged staking fees and etc.

Membership Tiers:

• Tiers based on staking period and thresholds: Entry, Standard, Elite, Ultimate.
• Advancement by meeting staking period and amount requirements.

Tier Model Snapshots:

• 4 times over 30 days to determine tier status and rewards.

Other Utilities:

• Governance participation rights and more.

Overview

We are launching a boosted staking rewards program to incentivize loyalty and long-term support. This program offers real yield instead of points, creating a flywheel effect to retain long-term users through substantial rewards from Neemo dApp staking owner reward

NFT Issuance

We will issue a total of 500 loyalty NFTs:

250 NFTs will be whitelisted through campaigns with the announced partners minted through Sonova on Astar zkEVM

250 NFTs will be allocated to ASTR stakers after the mainnet launch:

• The top stakers and
• Random stakers who stake even 1 ASTR!
• Remaining NFTs: campaign coming soon!

※ Wallets can hold multiple Loyalty NFTs, but the only 1 NFT with the longest staking period will be used for reward calculation.

Minting Phases

GTD (Guaranteed) Round:

• Amount: 200
• Users who participated in the Whitelist Campaign with the following partners and secured a spot will be able to mint their NFTs.
• Partners: Starlay Finance, Walkmon, Arthswap, and BONSAI NFT CLUB

Public Round:

• Amount: 50
• All wallet addresses will be eligible to mint on a first-come, first-served basis.

Tier Determination and Snapshot Process

• Compare balance with the previous snapshot amount
• Snapshots will be taken 4 times over 30 days.
• For example, calculate the balance on day 1, then calculate the balance on day 7, check the differences and determine the tier.

Reward Distribution Period

• Rewards will be distributed 4 times in each 30 days period permanently starting from 28th Aug.
• Rewards will be distributed in the form of nsASTR.

Loyalty NFT utilities

• Purpose: 50% of dApp staking owner reward distribution during 2024, with ongoing reward opportunities.
• Additional Benefits: Future governance participation rights and more.

Membership Tiers

Membership tiers are determined by both the staking period and the tier thresholds. Users will automatically advance to the next tier when they meet both the staking period requirement and the tier threshold.

Users will automatically move up one tier when they fulfill the tier threshold after the required staking period has passed.

• If users meet the Entry tier conditions and the staking period requirement but have not yet reached the tier threshold, they will advance to the next tier once the required amount is staked.
• If users reach the tier threshold but the staking period has not yet been completed, they will need to wait until the required period is met before advancing.

For example:

• Once the user stakes a minimum of 5,000 ASTR, they will enter the Entry tier. After 3 months have passed, the user will need to stake a minimum of 100,000 ASTR to advance to the Elite tier. This process continues similarly for higher tiers.
• Conversely, even if a user starts by staking 300,000 ASTR, it will still take 7 months to reach the Ultimate tier.

Tier Model

Moving Between Tiers

Up: By staking longer and reaching to the threshold

Withdraw Penalties:

• 1 withdraw: 1 rank down.
• More than 50%: 2 ranks down.

※ If a user has passed the required staking period and subsequently stakes the amount needed to meet the tier threshold, they can regain their previous tier status.

Transfer Penalty: user who accept the NFT starts from the entry

Reward Calculation

Rt = R*PtWt/ΣPtWt

R: Total rewards for all ASTR staked in the Loyalty program for the period.

Pt: Percentage of the total staked ASTR in the tier.

Wt: Weight for the membership tier.

Rt: Rewards for the tier for the period.

Rewards

During 2024

Reward Source: 50% from Neemo dApp staking owner reward

After 2024

Additional Reward Sources:

• Neemo dApp staking owner reward.
• Neemo protocol fees.
• Rapid withdraw fees.
• Leveraged staking fees.
• and etc.

Estimation during 2024

Assumption

Total Rewards (R): Neemo becomes Tier1

• The total rewards to be distributed is 1,542,809.5 ASTR = 9,553ASTR * 323 (365-Voting period: 33) days /2

Number of Users and Staked ASTR per User:

• Inactive: 250 users those who don’t reach the minimum threshold
• Entry: 125 users, each staking 5,000 ASTR, total 625,000 ASTR.
• Standard: 75 users, each staking 10,000 ASTR, total
• Elite: 38 users for each staking 100,000 ASTR, total 3,800,000 ASTR
• Ultimate: 13 users for each staking 300,000 ASTR, total 3,900,000 ASTR.

Percentage of Total Staked ASTR (Pt):

• Entry: 6.88% (625,000 ASTR / 9,075,000 ASTR)
• Standard: 8.26% (750,000 ASTR / 9,075,000 ASTR)
• Elite: 41.87% (3,800,000 ASTR / 9,075,000 ASTR)
• Ultimate: 42.98% (3,900,000 ASTR / 9,075,000 ASTR)

Weights (Wt):

• Entry: 1
• Standard: 1.49
• Elite: 2.68
• Ultimate: 4.3

Rewards (Rt)

Entry:

• Rewards: 36,901.27 ASTR
• Rewards per person: 295.21 ASTR
• APR: 5.90% + approx 21% (dapp staking base reward)

Standard:

• Rewards: 65,964.92 ASTR
• Rewards per person: 879.53 ASTR
• APR: 8.80% + approx 21% (dapp staking base reward)

Elite:

• Rewards: 448,544.95 ASTR
• Rewards per person: 11,803.81 ASTR
• APR: 11.80% + approx 21% (dapp staking base reward)

Ultimate:

• Rewards: 995,398.36 ASTR
• Rewards per person: 76,568.34 ASTR
• APR: 25.52% + approx 21% (dapp staking base reward)

Conclusion

This comprehensive staking rewards program is designed to foster loyalty and long-term support from our users. By participating in this program, users can earn substantial rewards while contributing to the growth and stability of the Neemo protocol. The issuance of loyalty NFTs and the structured tier system will be improved to ensure a fair and engaging experience for all participants.

We’re proud to announce the public launch of our testnet for Astar Network. Now you can check out dApp staking on Neemo Finance’s public testnet and get a feel of how it works. Check out the testnet here.

Here’s a quick guide on how to use the testnet.

Step 1: Head to Neemo Finance App

Head to the app here. Click on “Connect Wallet”. You can use any wallet of your choice for this. Once you have connected your wallet, you’ll need testnet SBY tokens to stake.

Step 2: Collect SBY from faucet

You can access the SBY faucet by clicking the “Faucet” button in the top-left corner of the app.

When you are on the faucet screen, click on the droplet icon as below.

Complete the captcha test, and you’ll receive 10 SBY tokens in your connected wallet. Once you receive the tokens, head back to the app.

Step 3: Stake your SBY. Add nsSBY to wallet.

Enter the amount of SBY that you want to stake on the app. Once done, click on the “Stake” button. Give the wallet approval requests as prompted.

Once done, you’ll be notified that the stake is successful in the bottom-right of the screen. Now, scroll down to find the “Add nsSBY to your wallet”. Click on it to see the nsSBY token reflected in your wallet.

Step 4: Initiate withdrawal request

Currently, we have only enabled Timelocked staking mode on the testnet. Thus, when you stake your assets they get Timelocked for the entire 121-day period for both the Voting and Build&Earn Subperiods. While you cannot instantly withdraw your assets, you can initiate Withdrawal Requests.

To do that, toggle the “Withdraw” tab. Enter the amount you wish to unstake and click on “Withdraw”.

Once you have initiated the withdrawal request, it will reflect in the “Pending Requests” queue. You can decide to alter the withdrawal amount or cancel any of the requests. Use the slider to do it!

The best part? You earn staking rewards even after you have submitted the unstaking request!

We look forward to the community feedback on UX, design, copy and/or any other feedback you deem necessary for us. Join our community on Discord and share your feedback.

We’ll be releasing more updates as we have soon. Until then, stake, relax, and repeat with Neemo Finance! Join our community here and follow us on Twitter to stay updated on all things Neemo.

Most PoS protocols struggle with finding an adequate utility for their native tokens. In almost all cases (apart from Layer 2 networks on Ethereum), the native token is used as the gas token for transacting on the network. Additionally, most PoS networks offer users the ability to stake their tokens and earn rewards from network inflation. This has proven to be an effective strategy for capturing much of the PoS token supply while incentivizing decentralization.

Here is a table that shows the amount of native PoS token staked for a handful of PoS networks.

Apart from Ethereum, most of the PoS networks we have looked at have a healthy 50% staking ratio. We contest that this is also a factor of the avenues that are available for users where they can deposit their native PoS tokens. For instance, on Cardano (where DeFi activity seems to be very low), the staking % is as high as 62%.

Thus, users with native PoS assets have limited avenues to utilize them:

• Either stake those assets to earn from the underlying network inflation, or
• use them in available DeFi opportunities

For a majority of them, the former is a better option thanks to the rise of staking pools, which make it easier even for retail to participate. Moreover, liquid staking solves much of the users’ problems related to:

• complexities (both technical and economical) associated with staking, and
• opportunity costs arising out of locking tokens in the underlying network

The added layer of restaking also functions to incentivize users to restake their assets and support additional protocols, in return for yield. Restaking introduces additional layers of risk for both the protocols and users. The layered complexities and risks associated dissuade network participants from restaking. But that’s for a later discussion.

For a system as capable as dApp staking, liquid staking presents a novel opportunity that supercharges participation by incentivizing users to liquid-stake their ASTR. How? Let’s understand.

Liquid staking as an economic sink

Liquid staking is one of the greatest innovations to come out of DeFi in the recent years as it adequately captures a majority of the native PoS network token supply. In return, it mints a liquid token to users that is freely usable in a host of different DeFi applications.

This:

• allows the underlying PoS network to become decentralized, and
• allows users to retain liquidity on their tokens despite staking them in the underlying network.

Ethereum is perhaps the greatest example of liquid staking being successful. LSTs saw rapid growth in TVL since withdrawals were enabled as part of Shanghai in 2023.

Liquid staking acts as an attractive economic sink as it allows people to stake their tokens while getting a liquid and tradable derivative on it. This derivative then fuels applications on the PoS network, thereby driving healthy DeFi activity.

How liquid staking supercharges dApp staking

dApp staking provides a much improved and novel way for users to support their favourite dApps. It's a much decentralized and user-centric approach to unite users and developers, especially compared to restaking and existing grant mechanisms.

• In grants, a committee operated by the PoS network itself decides who the recipients are, how much grants they get and so on. While this committee often takes into account the demands and expectations of its users, the process still ends up remaining slightly centralized.
• While restaking is technically different, it has similarities to dApp staking in that it allows LST holders to support dApps of their choice. However, the layered risks associated with restaking (especially arising out of multiple slashing conditions) introduce several vectors of risk.

In the case of dApp staking, however, users have complete freedom to decide which dApps they want the underlying network to support. At the same time, there is no layered risk whatsoever. Users can decide to stake and/or withdraw whenever they feel like.

Thus, the underlying Astar community can independently decide which dApps to support. That said, the interest in dApp staking has not been great recently.

The above numbers indicate that a majority of ASTR have not yet been staked. This underscores the significant need for a liquid dApp staking solution for Astar.

At Neemo Finance, we aim to fill in this gap and offer a highly capable liquid dApp staking solution that offers complete freedom to users.

When users deposit their ASTR with Neemo, they get a liquid nsASTR token in return that increases in price over time as it accrues staking rewards. This is a non-rebasing and highly composable DeFi token that can be easily integrated across several DeFi applications.

Since we know that a majority of users want:

• higher returns and
• zero complexity

we’re designing our liquid dApp staking in a way that offers them exactly that.

Introducing Timelocked Staking

Our Timelocked staking further addresses one major challenge for users: that of capturing Bonus Rewards from Astar inflation.

Users are required to keep their ASTR staked for the entirety of Voting and Build&Earn Subperiods, which amount to roughly 121 days. If they unstake their assets any time before that they lose out on the Bonus Rewards.

Neemo Finance introduces a novel solution to this that allows users to “timelock” their assets for that entire duration of 121 days. At the backend, those user-deposited ASTR are staked and used within DeFi applications as part of curated strategies.

This ensures that not only do users get Bonus Rewards from the underlying ASTR inflation, but they also get boosted rewards from DeFi strategies.

This inspires users to stake their ASTR with us and take a “stake and forget” approach. Once they have staked, they earn boosted rewards without having to actively monitor their positions.

Closing Thoughts

At Neemo Finance, we are creating a liquid dApp staking solution that incentivizes users to stake their ASTR. This offers three primary benefits:

1. It benefits the users as they earn yields on their deposits.
2. It benefits the Astar Network as it offers a very healthy economic sink that reduces unnecessary sell pressure on ASTR.
3. It supports emerging dApps on Astar Network as they get a flush of support from ASTR stakers.

Thus, our liquid dApp staking solution empowers all involved stakeholders within the Astar Network.

For more details, check out our website here. Follow us on Twitter and join our Discord for some exciting conversations around dApp staking!

We’re proud to share we’ve secured the Unstoppable Community Grant from Astar Network! Check out our proposal here and our Townhall vote here.

This empowers us to build a highly composable liquid dApp staking product for Astar, allowing users to earn higher-than-industry returns from dApp staking.

How? Let’s find out.

dApp staking presents a huge potential on Astar Network. It allows users to earn rewards while staking their tokens on their favourite dApps. However, the way the network has structured ASTR inflation limits users’ rewards.

Astar Network rewards users who stake their ASTR tokens for longer. To ensure that, the network follows two major Subperiods:

• Voting
• Build&Earn

During the Voting period, a user decides which dApp to stake their tokens to. Once that is done, both the users and the dApps start earning rewards during the Build&Earn Subperiod.

Now, if the users unstake their ASTR or if the total amount of ASTR staked fall below the minimum threshold, users lose out on the Bonus Rewards.

While this allows users the flexibility to unstake at any time, it also makes them lose out on the Bonus Rewards. To counteract this, we offer dual staking modes:

• Standard Staking
• Timelocked Staking

Standard Staking

Users can stake their ASTR tokens and mint nsASTR in return. These nsASTR can be used in partner DeFi protocols by users. With the Standard Staking mode, you can also unstake/exit your nsASTR position anytime.

Timelocked Staking

Users stake their ASTR tokens and lock them for the entirety of the Voting and Build&Earn Subperiods. This allows them to earn Boosted Rewards from Astar inflation.

But that’s not all. The locked ASTR are also utilized by the Strategy Manager contract in partner DeFi protocols. This allows users to earn higher returns on top of the Boosted Rewards from Astar inflation!

This strategy incentivizes users to stake their ASTR with us and earn compounded returns. As a consequence, as more users stake their ASTR with us, the more dApps are supported in the Astar Network, further fueling the growth of DeFi on Astar Network.

UCG Grant

The grant allows us to build a highly secure liquid dApp staking protocol for Astar Network, loaded with features that benefit the existing ASTR holders.

We strive to build a highly secure, permissionless, and most importantly, composable dApp that offers users the ability to earn disproportionate returns from their ASTR stake.

For more details, follow us on Twitter and join our Discord!

Dear Community,

We are excited to announce a strategic shift in our focus at Neemo Finance. Originally, we planned to develop BTC L2 first and then proceed with Astar development, aiming to leverage BTC liquidity to positively impact the Astar ecosystem.

However, after an internal team meeting, we saw significant potential in the Astar ecosystem. Hence, we decided to prioritize the launch of nsASTR, a Liquid Staking Token (LST) for the ASTR token, on the Astar EVM.

Why nsASTR?

nsASTR will be a yield-bearing token that will unlock liquidity for dApp stakers on Astar Network. It will function as a base LST that integrates seamlessly with lending platforms and other DeFi protocols without requiring additional connectors.

This approach ensures easy adaptations and maximizes usability. Initially, we will return all revenues from our dApp staking protocol rewards to users, providing higher earnings. Additionally, we will enable native staking and unstaking, allowing users to stake and unstake ASTR on other L2s and mint nsASTR, thereby expanding ASTR’s utility across multiple L2 chains.

Next Steps

We are applying for the Unstoppable Community Grants and dApp Staking, requesting 2M ASTR tokens to be staked on our dApp staking. This will significantly boost our development efforts and ensure we deliver a robust and scalable solution for the Astar ecosystem if approved. Thank you for your continuous support. We look forward to sharing more updates as we progress.

Thanks for your continuous supports!