AMA Recap of Vietnamese Community 68Trading
Warm-up questions :
Q1. Could you please briefly introduce yourself as well as NEST Protocol？
Hello EveryOne, I am Tina.
NEST Protocol is a collateralized lending product at the very beginning. Due to the lack of price mechanism and the oracles are commercially not in line with the decentralized nature of blockchain, NEST Protocol has developed a decentralized price oracle network in v2.0.
After more than one year of practice and research, we have gradually updated and adjusted various parameters and data of NEST system based on the essence of blockchain and now NEST Protocol v3.5 could become the underlying price protocol of all DeFi applications which is the only one that generates price information flow in a decentralized way on the Ethereum network. The upcoming v3.6 will officially enter DAO governance and become a true non-cooperative gaming system.
Q2. Currently, there are many Oracle projects in the market, could you share with us the advantages of NEST Protocol ?
To answer this question, I need to explain a few more points. First of all, it should be clear that NEST Protocol is not only an oracle but also a non-cooperative gaming system.
The blockchain world cannot actively generate price information, so it needs to rely on middleware to transfer the off-chain price on-chain, and this middleware refers to oracle.
Oracle’s function is to upload price information for the blockchain to be used by various DeFi products. We don’t need to trust the person who uploaded the price but the price itself.
The process of running an oracle based on the normal logic is basically: collect price information from multiple exchanges, put them together to take the average and upload them on-chain; or find a few so-called “trusted” nodes with each uploading price to a centralized processor, take the average of the uploaded prices for use by DeFi products.
This is the approach of most oracles in the market today and there is a problem of trusted source that we need to trust the person or node or project owner who uploads the price. We cannot validate the prices themselves.
The biggest advantage and innovation of NEST Protocol’s price mechanism compared to other oracles is the reverse thinking approach: Miners make bilateral asset quotes and introduce a verification mechanism that enters prices that have no room for arbitrage into the NEST system.
In the NEST system, it is the miner who uploads the price and it is a 30 ETH scale bilateral asset that miners put real money into the contract to quote. If the quotes deviate or having been distorted, there is bound to be arbitrage space with the prices off-chain and thus arbitrage by the validator. There is no need to know or trust the person who quoted the price because anyone can validate this price in the validation cycle of 25 blocks. Until there is no arbitrage space, this price data will be entered by the NEST system to generate price information directly on-chain. Other oracles upload price first with no validation and then impose punishment if any problem; NEST validates price first and directly eliminates the occurrence of errors. Prices that are not recognized by the on-chain world will not be uploaded, which is the essential difference between NEST and other oracles.
Such a distributed price oracle solution is manifested in concrete results: The data has accuracy, sensitivity, defensibility and can be directly validated. The validators can be any third party with no threshold. Besides, the NEST oracle network system is highly distributed, Anyone can become a miner to participate in quote mining and freely enter or exit.
NEST Protocol takes the price mechanism as the core and produces NEST Token in a non-cooperative gaming way in the production. Other kinds of ERC20 assets take the oracle to produce all kinds of native nToken to constantly output the price information flow to the blockchain. This complete set of price information flow output mechanism can become the underlying price mechanism of the risk-calculable financial products on-chain which can be summarized according to the nature of blockchain as follows: BTC achieves data anti-tamper (transfer) through the non-cooperative game, ETH achieves logic anti-tamper（smart contract）through the non-cooperative game, NEST achieves exchange rate anti-tamper（price information flow） through the non-cooperative game. From this point of view, other oracles are just price data movers, a single product with only price-output while NEST Protocol is an ecosystem and a real non-cooperative gaming system.
Q3. Could you please share with us NEST Protocol’s visions and goals in 2021？
The keyword for NEST Protocol in 2021 is “demand”. We need to be clear that the crypto world is ultimately targeting the need to get out of the circle which is the real need to be accepted and recognized by the general public.
So far, only BTC is really out of the circle and if ETH or DeFi wants to go out of the circle, they must find the right position and real demand which is the long-term proposition of NEST Protocol.
To establish an on-chain economy, the price mechanism of the non-cooperative game is the core element. Therefore, NEST Protocol’s key development goal this year is to develop more financial products based on price information flow with the vision of becoming the underlying price protocol of the Ethereum on-chain economy.
Pre-selected questions :
Q1. From Ngo Truong :
Can you list some great features of $NEST that make it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?
Just talked about the advantages and features of NEST, the summary is as follows：
1. Price data with accuracy, sensitivity, defensibility.
2. The ability to validate price data directly and the validators can be any third party with no threshold.
3. NEST oracle network system is highly distributed where anyone can become a quote miner to participate in quote mining, free to enter or exit.
4. NEST Protocol is non-cooperative gaming in the production process while output quote voucher tokens for all kinds of ERC20 assets in a decentralized manner, just like ETH can issue any ERC20 tokens.
5. The price information flow output by NEST Protocol can derive a series of risk-calculable financial products through the single point price data, average weighted data, volatility data on-chain.
6. NEST Protocol is a non-cooperative gaming system, the underlying price protocol of Ethereum and an ecosystem rather than a single DeFi financial product.
Our most confident advantage is that NEST Protocol is a non-cooperative gaming system like BTC and ETH in the production process based on which it can generate price information flow.
Here we can emphasize again that BTC achieves data anti-tamper (transfer) through non-cooperative game, ETH achieves logic anti-tamper（smart contract）through non-cooperative game, NEST achieves exchange rate anti-tamper（price information flow） through non-cooperative game.
The blockchain world can be copied in the next second. It is difficult to survive long in this world. Projects have to develop and create extreme scarcity to survive in the monotonically increasing world of Ethereum. Analyzing the nature of blockchain, only a real non-cooperative gaming system can survive long. For this, NEST Protocol is very confident.
Q2. From Ngo Trung :
The DeFi ecosystem faces challenges associated with high transaction costs, high latency, and a lack of multi-chain operability that restricts users from slowly executing derivative transactions seamlessly. What solutions does NEST have to address these problems?
The Ethereum DeFi ecosystem does face these problems mentioned above. But it should be clear where the root of these problems is and whether these could be solved by NEST.
High cost and high latency are caused by the nature of blockchain, rising GAS fees and the GAS cap to make the Ethereum network congested when the market comes.
These problems belong to Ethereum itself. Various developer teams and smart contract enthusiasts in the current Ethereum ecosystem have also put forward proposals such as EIP-1559 proposal, layer2, ETH2.0, and so on. Whether these issues can be solved needs to experience the verification of time after the main network of these proposals is launched.
At present, NEST still keeps building our own ecosystem on Ethereum layer1 which is the underlying architecture maintained by a large amount of arithmetic accumulation after years of testing and has the best security. The purpose of NEST Protocol is to always put security first which is also the core element of finance. If other solutions improve, the possibility of migration will not be excluded which requires DAO governance and community voting.
The issue of multi-chain operation is a barrier to cross-chain technology which is a problem that developers working on cross-chain direction need to break through and solve. NEST does not consider such interactions yet.
As for other smart chains or public chains, none of them are currently under consideration.
NEST Protocol has built its own ecosystem on Ethereum and is fully capable of forming a closed loop on the network. The interaction within the NEST ecosystem is what NEST focuses on that makes every effort to achieve perfect interaction in smart contract development and front-end and back-end web development while saving gas fees. As for the future in balancing the gas fee and mining, we need to conduct in-depth research and modeling, striving to be adaptive according to the changes of the gas fee. You can pay close attention to the dynamics of NEST.
Q3. From Hoang Dinh :
What’s the main feature content of NEST v3.6? What has been improved, and what’s the roadmap NEST planning in 2021?
The highlight of NEST v3.6 is entering true DAO governance. It is a very complex and deep issue about which one or two sentences specifically is not enough to explain. Moreover, there is no better design of DAO governance mechanism which has been polished for a long time in the whole DeFi or even blockchain industry.
Currently, most DeFi projects have semi-decentralized governance with developers holding the rights and using multi-signature for so-called community governance. This is not a sustainable model and relies heavily on teams or individuals and is dangerous for a decentralized non-cooperative gaming system.
NEST DAO governance will remove developer’s privileges and all holders will be able to participate in voting with modifications passing 51% of the votes to be implemented. Once 51% of votes are reached, the modifications will be implemented immediately without anyone’s signature. At present, almost no project dares to take this step which has to be broken. Of course, if you want to modify the protocol, you have to propose it in Github and write the code for the modification before the matched implementation. The modifications also need to be promoted in the community, or it is difficult to reach 51% votes.
In addition to the DAO governance, we are also removing the dividend altogether and locking the value firmly within the system for NEST Token capture so that the value will no longer spillover. We’ve also modified the quote size and fees, etc. For a detailed explanation, please see this article:
https://mp.weixin.qq.com/s/mIg2Jm6pmsKdA0VYvmsdtw
There are several big events in the NEST ecosystem this year：
1. NEST Protocol v 3.6 which is launching in April will remove developer’s permissions and officially enter the DAO governance.
2. The upcoming launch of CoFiX 2.0, an Auto-Market-Maker protocol based on NEST Protocol.
3. Parasset, a parallel asset protocol that provides lending, native assets exchange and exchange insurance pool for the on-chain world is also based on NEST Protocol.
4. Lending protocol Tank and perpetual contract protocol Fort based on NEST Protocol are under development.
5. Thinking, designing and developing NEST Protocol to better solve the GAS consumption problem and mining randomness problem while proposing to GitHub.
6. Develop and study more cases of financial products based on NEST Protocol price information flow.
DeFi got attention in Crypto now, how do you see DeFi potential for NEST right now!?.. What role do you think NEST will play to makes DeFi better in global usage!?
Currently, the definition of DeFi is open finance, and what is presented to you is an open financial product, all DeFi products have the shadow of traditional finance. In other words, it is a transposition of real-world financial logic onto the blockchain, such as trading, lending, insurance, etc. Through the combinability between products, these products form one big silo, and these silos add up to the current DeFi ecosystem.
The underlying price agreement of non-cooperative gaming is necessarily the infrastructure of the on-chain economy. These DeFi silos cannot be linked without this foundation. Therefore, the potential of NEST is huge.
The role played by NEST is the infrastructure of the on-chain economy, and NEST has chosen to continue the path of the blockchain’s essence, gaming until the price that has no room for arbitrage is entered into the NEST system. This is achieved at the source without the need for permission and verifiable. The flow of price information generated in this way is spread throughout the entire Ethereum network, which is the ideal infrastructure. The differences between Ethereum and traditional Internet computing are examined in light of the differences between this for trading products, lending products, capital management products, etc.
The smallest computing unit of Ethereum is one block (13 seconds), and the computing unit of centralized exchange is milliseconds. The research of arbitrage and risk management calculable by time difference is a research direction that can be continued all the time, and it is bound to be able to give birth to various application products, and it is not known whether DeFi can still be DeFi at that time.
Q4. From Kha Hoang :
NEST claims to be “decentralized.” Can you provide evidence that NEST is decentralized, unreliable and does not have a controlling stake in the ruling party? How big is the role of third parties such as DefiPulse and Secbit on NEST platform?
In fact, NEST does not need to claim to be “decentralized”. Because from the first version online to now, all the code, information and rules are public, and the text interpretation is only for the convenience of laymen to understand.
Everyone has a different understanding of the big proposition of “decentralization”. Whether it represents a process or a result depends on your own opinion.
I will briefly mention a few points about the decentralization of NEST: 1.
1. NEST ecological each Token are mined, anyone can mine, free to enter and exit.
2. NEST Protocol various types of ERC20 assets prophecy machine to open without permission.
3. The offer and verification of NEST Protocol can be participated by anyone, no permission is required, free to enter and exit.
4. The price information flow data produced by NEST Protocol can be called by any DeFi product for a fee, and all costs are captured by NEST Token and nToken.
5. After NEST Protocol version 3.6 goes live, it will be decentralized at the governance level, and anyone can propose on GitHub. Access to voting governance without developer permissions, multi-signature, etc.
6. Anyone can develop financial products based on NEST Protocol’s price information flow.
All content is available on-chain at NEST Protocol current version. All address information: https://www.nestfans.com/wiki/nest_contract_address
NEST Protocol GitHub URL: https://github.com/NEST-Protocol
Second issue：
Third platforms or institutions such as DefiPulse and Secbit are themselves the product of centralization. Data statistics sites like DeFiPulse provide a convenient way for people to get data without having to collect data from smart contracts to build their own databases.
Such website statistics are useful for NEST, such as DeBank’s oracle section, the number of oracle calls, the number of calls to the contract, and other financial products
Derived from NEST data are good ways to analyze. However, NEST itself is not comprehensive and intelligent, and the value of a non-cooperative gaming system cannot be assessed by a single lock-in data, ranking data, etc., but requires a comprehensive analysis and analysis of future potential.
To evaluate a non-cooperative gaming system, we need to judge the degree of decentralization, the number and quality of Gamers involved in the game, the derivative ecology, the ability to create native assets and information, and the potential.
Therefore, while evaluating and researching blockchain projects, we need to explore in-depth which projects can be involved as non-cooperative gaming systems, and also rationally evaluate non-cooperative gaming systems and open financial products with different criteria, which are two completely different products in nature.
#Secbit itself is an early NEST Protocol partner, and security auditing is a very important and complex matter. Currently, such platforms are not only helpful for NEST but also become an essential part of the development of current blockchain projects.
Q5. From John Nguyen :
- Increasing Token price
- Making Token Valuable
- Building Community Trust
From the 3 aspects above, I want to know which one is the most important for team NEST PROTOCOL? If all above are important for team NEST PROTOCOL, which one will team NEST PROTOCOL do first?
Indeed, all of the above are important to the NEST Protocol, and are intertwined and compatible. If I had to choose one, it would be “making tokens valuable”. This is a long-term proposition and is sustainable.
Throughout the non-cooperative gaming systems like BTC and ETH, the consideration is the long-term value of the token. The kernel of development is still that the token itself has value, or the protocol carried by the token itself has value. Because the token is just a carrier, the final presentation is the ability of the token to capture the value of the protocol itself, which is the first to be taken into consideration.
Of course, the NEST ecosystem has its own roles to play, and the NEST CORE development team is constantly polishing the protocol itself, providing more in-depth thinking and design to enhance the protocol value and the ability of the token to capture the value.
NEST LABS and NESTFANS are constantly interpreting the code content, preaching to the outside world, exchanging decentralized ideas, writing playbooks, attracting more players to participate in the game, and thus building community trust.
And the price of tokens is the result of market performance. As long as the ecology develops steadily, the price is not a problem.
