NEST Protocol AMA RECAP With Poly Network
On the 2nd of July 2021, at exactly 11:00 AM (UTC+0), Yuyi, the Chief Advisor of NEST Protocol system and John Wang, Founding Member of Poly Network, disseminated the full details of the cross-chain cooperation reached by NEST Protocol and Poly Network.
This AMA took place on the NEST Protocol telegram community.
From the Live AMA with the NEST Chief Advisor Yuyi and Poly Network Founding Member, John Wang, this recap has been carefully drafted to ensure the full grasp of the information.
GUEST INTRODUCTION
John Wang: John is responsible for the Ecosystem Growth of Poly Network, with many years of experience in the blockchain industry.
Poly Network is a groundbreaking heterogeneous interoperability protocol alliance, which has already integrated Bitcoin, Ethereum, Neo, Ontology, Heco, BSC, OKExChain, Elrond, Zilliqa, and Cosmos-SDK, and aims to build the foundation for Next-gen Internet (NGI) by enabling greater integration, cooperation, and innovation. Since the launch, the protocol has enabled cross-chain asset transfer of more than 7 billion U.S. dollars involving more than 150K addresses on different blockchains.
Yuyi: Yuyi is currently the Chief Advisor of NEST, also a researcher at ETH Zurich.
NEST Protocol is a collateral lending product, due to the lack of price mechanism and the oracles on the market are not in line with the nature of blockchain decentralization. In the process of more than years of practical operation and in-depth research, based on the essence of the blockchain, various parameters and data of the NEST system are gradually updated and adjusted. The current NEST 3.6 version can become the underlying price of all current DeFi, and it can also be said that it is the only underlying price protocol that generates price information flow in a decentralized and non-cooperative gaming way on Ethereum.
QUESTIONS AND ANSWERS IN LIVE AMA
Q1: I recently read that NEST Protocol has reached a cross-chain partnership with Poly Network, how did the two parties come to an agreement?
Yuyi: Initially, when NEST first created the protocol on Ethereum, the first thing it valued was that the development of Ethereum after several years was sufficiently safe and highly decentralized. It was also the world’s largest public chain at that time.
After the blowout of the DeFi boom, Ethereum gas consumption and congestion became more and more serious. At this time, the development of Layer 2 solutions, various side chains, and other public chains, which captured a large number of users with low transaction fees, and many projects on Ethereum also conducted various cross-chain research interactions. We would only choose to implement cross-chain if it had experienced the ups and downs of the market and withstood the test of cross-chain solutions.
After this wave of market effects has gradually stabilized, the security of cross-chain interaction has also been reflected, and the future blockchain will also develop in parallel with multiple chains. NEST has decided to seek a more professional cross-chain agreement.
Poly Network is NEST’s preferred cross-chain protocol. Its cross-chain technology has been fully verified by the market, which has realized the interoperability of 10 mainstream heterogeneous blockchains including Bitcoin, Ether, Neo, Ontology, Heco, BSC, OKExChain, etc. Currently, more than 7 billion US dollars of cross-chain asset transfer has been completed, and more than 150,000 addresses have used the cross-chain service.
In addition, the NEST Protocol ecosystem will generate more native assets in the future, and the innovative mechanism of NEST oracle can interact across chains in the future, which will also promote the development of Poly Network, therefore, both parties reached a consensus to start in-depth cooperation.
John Wang: As DeFi Fever Grows, the ecosystem on Ethereum also shows an explosion, but the high transaction fees of Ethereum and the congestion of on-chain transactions have become an obstacle to the development of Ethereum, and there is the phenomenon of project parties and users shifting to BSC and HECO, etc. A set of cross-chain infrastructure that can connect multiple heterogeneous blockchain networks becomes extremely important.
Oracle is a very important infrastructure. As a widely used oracle, we are very glad to have the opportunity to cooperate with NEST. Before this cooperation, we have had many discussions with the NEST project team, and we have a lot of consensus on the development of the future blockchain. We believe through this cooperation, both of us can have many new innovations in the future.
Q2: What is Poly Network’s main approach to cross-chaining? What are the advantages over other cross-chain products in the market?
John Wang: In the field of heterogeneous interoperability, Poly Network has accomplished three major breakthroughs:
1. Removed the technical roadblocks such as the large differences in consensus algorithms and underlying architectures between various blockchains, the lack of cross-chain information security guarantees, and the low execution speed of cross-chain transactions.
2. Enables board members to access other heterogeneous chains quickly, conveniently, and at low cost, and also supports application scenarios with transactional consistency requirements.
3. Connected currently isolated blockchain ecosystems to create an innovative model for the Next-Generation Internet (NGI).
If you are interested in learning more details, please follow us at：
• Poly Bridge: https://bridge.poly.network
• Twitter: https://twitter.com/PolyNetwork
• Medium: https://medium.com/@PolyNetwork
• Telegram: https://t.me/PolyNetworkgroup
• Forum: https://forum.poly.network/
• Github: https://github.com/PolyNetwork
Q3: What are the interaction advantages of the NEST Protocol after cross-chain integration?
Yuyi: Currently on the Ethereum chain, when the NEST Token asset completes DeFi or transfers interaction, the handling fee is relatively high. Cross-chain to other public chains through the Poly Network will alleviate the transaction handling fee problem.
NEST’s preferred cross-chain bridge to create is BSC, because BSC has been well-proven in the market and ranked top in market share.
NEST Token itself is also a representative native asset of the oracle protocol, and its market share will be more widely used in the future with the expansion of the cooperation protocol and its own ecosystem, the biggest advantage of NEST is the innovation that keeps emerging.
In addition, the NEST Protocol is also an underlying protocol that generates the quotation credentials for each project oracle. With the addition of assets based on the NEST oracle, the future share of cross-chain assets and emerging innovations will be cross-linked, bringing more high-quality assets and interaction protocols, which is NEST’s own advantage.
John Wang: With the cross-chain technology, NEST Protocol’s protocol-native asset, NEST, will realize fast migration and transfer between the dual chains of Ethereum and Binance Smart Chain (BSC) through Poly Bridge, a one-click cross-chain tool, to open up the interoperability of multi-chain assets and facilitate NEST’s entry into the BSC community’s DeFi ecosystem. It means in the future, more new users can join the NEST ecosystem and more projects can work with NEST.
Q4: We have noticed that since the launch of NEST Protocol v3.6, there has been a lot of progress and some projects have been launched in the ecosystem, can you give us an overview?
Yuyi: NEST Protocol v 3.6 was launched and adjusted the parameters of price volatility and DAO contracts, etc., making sufficient preparations for the subsequent community-based governance.
In terms of ecological projects, NEST Labs has incubated the computable finance protocol CoFiX and the parallel asset protocol Parasset, which have been launched on the main network successively, and there will also be a derivative protocol Fort.
Let me briefly introduce the two protocols that have been launched on the mainnet:
CoFiX is invested by Coinbase Ventures, Huobi DeFi Labs, Dragonfly Capital, and many angel investors. It is a DeX that can use the on-chain price information provided by NEST Protocol to calculate risk management and achieve effective hedging. Interactive website: https://cofix.tech/
Parasset, a synthetic asset project developed by NEST LABS, has closed $2 million in financing from Huobi Ventures, FBG Capital, OKEx Blockdream Ventures, 21DAO, AU21, Gravity Resource LD Capital, Infinity Labs, HOT LABS, Kernel Ventures, LINKVC, Kyros Ventures, All For Ventures, 100X Capital, YBB Foundation, and others.
It is a new synthetic asset protocol based on the NEST oracle to recreate value, enabling existing native assets to generate quoted counterparts in parallel, forming financialized self-enhancing properties. Interactive website: https://www.parasset.top/
Q5: With the NEST ecosystem taking shape, what else can be expected on the cross-chain?
Yuyi: Currently, NEST only completed BSC cross-chain for NEST token, and will subsequently cross to more chains based on the evaluation of protocol security and market.
Therefore, there are many things that can be expected at the cross-chain level in the future, such as more quotation credentials within the NEST ecosystem — nToken cross-chain, the NEST Labs incubated protocol based on the NEST oracle native assets cross-chain, the NEST oracle quotation mechanism of the overall ecological cross-chain, etc., will be something to look forward to in the future.
We will also develop in-depth cooperation with Poly Network to discuss more cross-chain solutions.
John Wang: We are very pleased to help NEST build its ecosystem through Poly Network’s cross-chain technology, and as more and more reputable projects use Poly Network, we hope to bring more resources to the cooperative ecosystem to increase the transaction volume and capacity of the network.
Poly Network’s typical application scenarios currently have a total of three categories, the first category of scenarios is mainly the asset mapping，like Poly Bridge, which is also the current cooperation with NEST.
The second type of scenario is the NFT market targeted by Poly NFT Bridge, because of the relatively high fees of Ethereum, the issuance and transaction fees of NFT is relatively high, so some projects will sell NFT on BSC or HECO, which requires the transfer of NFT from Ethereum to BSC for selling activities.
In the future, we hope to cooperate with NEST in more application scenarios.
Q6: What do you think about the future of multi-chain interaction?
Yuyi: I am optimistic about the future of cross-chain interaction in the long run.
First of all, being optimistic about BTC is also optimistic about cross-chain, because the BTC public chain itself cannot perform smart contract interaction. If BTC is applied to more DeFi applications, cross-chain will be necessary.
Secondly, the problem of the Ethereum public chain’s fee, transaction speed, and capacity cannot be solved in a short time. Before the final stage of ETH2.0 is officially launched, all chains have the opportunity to develop ecosystems, and with the rising market value of Ethereum, the fee of Ethereum is naturally higher than other chains, so for users with smaller assets, it is more appropriate to choose other chains.
Therefore, in my opinion, the future must be a parallel situation of multiple chains. Those who require high decentralized security for whales and large assets will choose to interact with DeFi on the public chain of Ethereum, while those who require relatively low decentralized security and users with smaller assets can choose other chains.
So if the assets in the crypto field want to have their own share in each chain, cross-chain will become the immediate need, so I am optimistic about cross-chain in the long run.
John Wang: Though at present, Ethereum hoards most of the attention DeFi brings, and other projects aren’t waiting around for its congestion problem to be solved. Blockchain interoperability is gradually becoming a reality, eradicating the siloed decentralized ecosystems of today, bringing more composability to the space, and enabling better allocation of development resources. The multi-chain ecosystem is inevitable.
As an eco-friendly chain network open to new members, Poly Network is not building its own ecosystem. Its mission is to connect existing heterogeneous chains, emphasize the advantages of each chain in the aspects of security, privacy, and efficiency, and maximize the value transfer potential and the application scope of blockchain.
This concludes the “Question and Answers” segment, heading to “community live questions”.
COMMUNITY LIVE QUESTIONS
Note: 2 best questions were selected and answered by the AMA guests, in this segment.
Q1. By Next Generation Internet, does Polynetwork (and Nest) believe in the ‘web3’ revolution as inevitable, and does it intend to get a piece or maybe be one of the main players in the field?
John Wang: I believe the Web3 will happen in the future, but it won’t be only decentralized or centralized, it is more like the integration of different technologies, and both models provide more effective technical services to the world. Therefore both oracle and cross-chain will be very important infrastructures to connect the real world and blockchain.
Q2. Apart from the ETH to BSC bridge, is there anything else you hope to achieve from this partnership?
Yuyi: Yes, definitely. NEST should not be a closed system, and in the very near future, there will be more bridges first.
But, we will selectively choose the pairs and build a very open system step by step, since there are too many public chains.
To make a final decision of which pairs we try first and to make sure we can achieve this, we will work closely with our partner.
This last answer brought the AMA to a close.
The following links will help you stay on top of the happenings in the Nest Protocol system
Website: https://nestprotocol.org/
Twitter: https://twitter.com/nest_protocol
Telegram: https://t.me/nest_chat
Github: https://github.com/NEST-Protocol
