#### What is Nirvana ANA? Nirvana ANA (ANA) is a unique [cryptocurrency](https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency) that operates on the [Solana](https://www.coinbase.com/learn/crypto-basics/what-is-solana) network. It is part of a dual system that includes the ANA token and the NIRV token. The ANA token is an algorithmic metastable token that serves as a store of wealth, while the NIRV token is a decentralized superstable store of value. The system aims to provide zero liquidation-risk loans of NIRV with a negative interest rate, meaning users can earn [yield](https://blog.coinbase.com/around-the-block-7-understanding-yield-farming-and-the-latest-developments-in-defi-ef9f1ac910fb) on their debt. The system transfers the volatile, speculative energy of the ANA token into the backing for the superstable NIRV token. This process enhances the overall [stablecoin](https://www.coinbase.com/learn/crypto-basics/what-is-a-stablecoin) [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-) on Solana. #### How does Nirvana ANA work? Nirvana ANA operates through a unique system that involves the ANA and NIRV [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token). The ANA token has an intrinsic value guaranteed by a diverse basket of reserve assets. The [protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) will always buy ANA back at its intrinsic value, creating a hard floor price under which the token cannot trade. As the surplus reserves grow in value, the protocol algorithmically increases the intrinsic value of the token, effectively raising the floor price. Users are incentivized to [stake](https://www.coinbase.com/learn/crypto-basics/what-is-staking) their ANA to gain periodic rewards. The protocol mints pre-ANA (prANA) tokens at regular intervals, based on the total supply of ANA. These prANA tokens are shared with stakers in proportion to how much they have staked, creating a compounding APY for stakers. #### What are the potential use cases for Nirvana ANA? Nirvana ANA aims to serve as a sustainable store of wealth. The ANA token is designed to provide bounded risk through partial collateralization, meaning it cannot go to zero, and its minimum price rises with demand. It also offers ultra-low-risk backing value via diversified stablecoin reserves, protecting holders against catastrophic stablecoin depegging through robust diversification. Furthermore, ANA can be used as collateral for taking NIRV loans, which are fully collateralized 1:1 with the intrinsic (floor) value of ANA. Since NIRV loans are priced at the floor value of ANA, there is zero liquidation risk for these loans. #### What is the history of Nirvana ANA? Nirvana ANA was developed as a twin system of algorithmic wealth and ultra low-risk stablecoin on the Solana network. The system was designed to transform the volatile, speculative energy of the ANA token into the backing for the superstable NIRV token. Over time, the protocol has evolved to include features such as concentrated liquidity, intrinsic value, a rising floor, and sustainable APY. The protocol's reserve profits when it sells ANA at the spot price and also when it sells time-released ANA contracts. The protocol is designed to prevent hyper-[inflation](https://www.coinbase.com/learn/crypto-basics/what-is-inflation) and support the price of ANA, resulting in modest appreciation and modest APYs for stakers.