NEST Protocol Launches the New Journey of BSC Cross-Chain Lending on ForTube
1、Could you please briefly introduce yourself as well as NEST Protocol ?
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 Etherum network. The upcoming v3.6 will officially enter DAO governance and become a true non-cooperative gaming system.
2、For DeFi projects, the oracle has become one of the important infrastructures of the DeFi ecosystem. Can you explain to us what is an oracle in an easy-to-understand manner? How important is the oracle to the DeFi ecosystem (or why does the DeFi ecosystem need an oracle)?
Before understanding the oracle, we must first understand that the blockchain is separated from the real world. It can only obtain data in the chain, but not the real-world data outside the chain. This is a deterministic and closed one. System environment. If you want to connect the blockchain and the real world, you need middleware to obtain data. This middleware is an oracle.
Simply put, the oracle is a bridge connecting the blockchain world and the real world, allowing the blockchain world to obtain real-world data.
Looking at the DeFi protocol at present, there are mainly the following directions:
1. Decentralized mortgage lending (Compound, Aave)
2. Decentralized transactions, flash swaps (Uniswap, CoFiX, Tokenlon)
3. Parallel Asset Protocol (Parasset)
4. Algorithmic stable coin (DAI)
5. Tokenization of BTC (tBTC)
6. Synthetic assets (Synthetix)
7. Decentralized financial derivatives such as futures and insurance (dydx, bZx, opyn, etc.)
In most of these DeFi protocols mentioned earlier, on-chain prices are required; for example, the closing price required for collateral and lending, the prompt price required for trading flash, and the clearing price required for financial derivatives. Without on-chain prices, these DeFi protocols cannot complete the logical closure on the chain. This is the time to use a price oracle like NEST to solve the problem of missing price information on the chain.
3、Facing such fierce competition, how can NEST improve its competitiveness in the DeFi market?
Before talking about this issue, we must first understand what DeFi and NEST represent. Here I want to extend some more content.
At present, everyone’s definition of DeFi is open finance, and what is presented to everyone is open financial products. At present, all DeFi products have the shadow of traditional finance. In other words, it is to copy the financial logic of the real world to the district. On the blockchain, such as transactions, lending, insurance, etc., each product is like an island. Through the composability between products, a large island is formed. Together, these islands form the current DeFi ecosystem.
NEST Protocol was previously defined as a decentralized oracle network. In the process of studying the entire ecology of BTC and ETH or the essential logic of the blockchain, we gradually update and adjust the NEST system. Now NEST could become all current DeFi underlying price agreements can also be said to be the only underlying price agreement on Ethereum, and it is a price information flow generated in a decentralized, non-cooperative game. Any encrypted native asset can be in NEST An oracle machine is opened on the platform to game the data of price trading pairs with ETH for use in downstream DeFi products.
Nowadays, DeFi is pursuing a fast settlement, high efficiency, and timeliness, and keep leaning towards centralized already well-developed communication, storage, and computation at the level of technical tools. There is nothing wrong with this path, but it is especially easy to make us fall into the logical trap of traditional finance, that is, trusting the source and eventually going to trust a centralized or semi-centralized subject.
Any financial product, whether centralized or decentralized, requires price information. At this level, DeFi chooses to either feed the price by itself, or trust the oracles of the so-called trusted nodes, or through decentralized transactions. The price information derived from the size of the pool is also in line with the thinking logic of normal people. From the perspective of the user, when a problem occurs, it is necessary to find an entity that can guarantee or compensate. Therefore, the project itself will choose this method.
NEST chooses to continue the path of the essence of the blockchain. The price of the game will be entered by the NEST system until there are no arbitrage possibilities so that the price information flow generated in this way can be spread over the Ethernet chain, which is the infrastructure of the underlying price agreement of the on-chain economy.
According to the difference between Ethereum and traditional Internet computing, we will study the trading products, lending products, asset management products, etc. between them. Because the smallest unit of calculation in Ethereum is one block (13 seconds), and the calculation unit of centralized exchange is milliseconds, the research of arbitrage and risk management calculable by this time difference is a research direction that can be continued all the time, and it will certainly be able to give birth to more various application products of risk management between on-chain and off-chain.
The layout and development of NEST are to do a good job of a non-cooperative game of the underlying price agreement of the on-chain economy and constantly output decentralized price information flow. Based on the price information flow, a series of financial products or financial agreements are derived.
At present, the financial products based on NEST Protocol are decentralized exchange CoFiX, Parasset parallel asset protocol, followed by Tank decentralized asset management protocol, Fort derivatives protocol, etc. These are based on the NEST no-arbitrage price information flow. It is a real decentralization way to solve the price problem at the source. All kinds of information constantly changing every moment, through time and practice, various parameters and data generated, through the chain derived from games and calculations The upper economy is subject to sustainable research and development. The NEST’s insistence on decentralized, crypto-native thinking is the biggest advantage.
4、What made the opportunity to partner with ForTube?
Currently on the Ethereum chain, when NEST Token interacts with DeFi or making a transaction, the fees are relatively high. The problem can be solved by cross-chain integration.
After the NEST Core team deployed the contract on BSC and successfully implemented cross-chain, NEST also urgently needed to grow horizontally and collaborate with projects on BSC, Fortube is the top global lending protocol, and also completed the cross-chain deployment of the protocol. In addition, NEST Token itself is also the native asset of the high representative oracle protocol, and its future market share will be increased with the expansion of the cooperation agreement and the expansion of its own ecosystem. The two parties came to an agreement and started deep cooperation.
5、What do you think about the future of cross-chain and multi-chain interaction?
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.
6、What plans does NEST have for cross-chain cooperation in the future?
NEST will carry out more cross-chain deployments. NEST assets and ETH are anchored 1:1, continue to cross-chain with HECO\OKchain, and etc., including some side chains of layer2, and carry out deep cooperation with the leading projects of each chain in liquidity mining, lending, oracle services, etc.
After the cross-chain deployment is completed and stable operation is ensured, a vote will be conducted to cancel NEST’s multi-signature authority on ETH, and gradually move towards decentralized community governance.