NEST Protocol v3.6 AMA Recap
A Summary of the problems encountered in the recent development of the NEST Protocol non-cooperative game system
On March 20, 2021, NEST Protocol had a live AMA session on the NEST Protocol Telegram Community session with the ambassador of NEST Protocol Simon and hosted by NEST SuperFan iJoJo. The AMA Had 3 Segments.
Segment 1 (Guest Introduction):
iJoJo: Hi everyone the Nest Representative today will be Simon, Hi Simon, Hope your ready for us. 😃
Simon: Hello, everyone. Glad to be here to talk with you guys. I am an ambassador of NEST Protocol.
iJoJo: Can you briefly give us an introduce yourself for the community?
Simon: Yeah, I’m technical support for NEST Protocol. If you guys have any technical problems, you could DM me. Today, I will bring some latest news about NEST Protocol done.
iJoJo: That’s nestilious 😋.. So are you ready for the first question?
Simon: Yeah.
Segment 2 (Question and Answer with Host):
Question 1: How does NEST Protocol plan to reduce the quotation GAS fees?
Simon: All DeFi apps (e.g. Uniswap, USDT, Sushiswap, etc) are suffering from the high Ethereum gas fees. They tend to adopt layer 2 rollups to solve this problem. But our Nest Protocol is a little bit different.
NEST Protocol generates the non-arbitrage asset price directly on the chain by two-side quotation mechanism (i.e. mining), and asset prices, verified by the market gamer, can be called by DeFi apps without worrying about price manipulation. Because the cost of asset price manipulation is extremely high (e.g. it takes millions of ethers to manipulate the price for 1 hour under the current NEST Protocol operating parameters).
You could though of the quotation gas fees as the electricity cost in mining bitcoin. Bitcoin miners need to invest in mining devices and electricity. Similarly, mining costs in NEST can also be divided into two parts:
- fixed cost (60 ether + equivalent USDT and NEST tokens, this part is like mining devices in bitcoin mining).
- quotation fees (quotation base fee + Ethereum gas fees, just like the electricity cost in mining bitcoin). The more electricity bitcoin miners put in, the more valuable the bitcoin becomes. The same goes for NEST.
In fact, if the time interval between two quotation transactions is short enough, NEST protocol could increase the quotation fees (Several months ago, the NEST Protocol did increase quotation fees) to reduce the volatile gas fees.
If you are a miner, there are also some effective methods to reduce the quotation gas fees. For instance, miners could use Gas Token (e.g. CHI or uGAS). If miners take advantage of uGAS, they could hedge the gas fees to avoid the volatility of Ethereum gas fees.
iJoJo: Wow Simon, Seems you came with full squad 😃 thought it was unending. Ready for question 2?
Simon: Lol, cuz, the first question is pretty important. Yeah, ready for the second one.
iJoJo: Let’s go. 🚀
Question 2: Can you briefly explain how the repurchasing model will work in the v3.6?
Simon: Ok, Nest v3.6 will use the repurchasing model to replace the staking revenue model. This change is pretty important for new miners. Cuz, the big miners who deposit many NEST in dividend contract will not have any advantage in terms of quotation fees. In the staking revenue model, new miners’ quotation base fees (ethers) are distributed to these big miners. Clearly, these dividend ethers are not used to buy NEST which resulting in lower prices. In the repurchasing model, quotation base fees (ethers) go to DAO funds which can be used for repurchasing NEST or QP tokens from miners. Anyone can sell assets (NEST or QP tokens) to DAO according to the price of the oracle. If new miners want to take profits, they could directly sell the mined NEST to the DAO. Done.
iJoJo: Superb answer, Let’s move straight to question 3!
Question 3: From one of the medium posts, it was stated that the Nest protocol will be compatible with parallel asset quotations. Can you explain to the community what Parallel assets are and why it is needed in Nest Protocol?
Simon: Sure, Parasset (parallel assets) protocol is critical to the entire Nest ecosystem. You could regard the Parasset protocol as Synthetix protocol. After introducing parallel assets, users could mortgage NEST and QP tokens (like nHBTC, nYFI) to synthesize other assets like pUSDT, pETH which can be used in quotation mining. Miners don’t need to worry about the volatility of quotation assets. For instance, if miners want to mine nYFI, you have to buy YFI, miners could mortgage NEST and synthesize pYFI as the mining asset.
Question 4: The token price has not been doing so well, is there a plan to pump it? Like what’s the overall plan for the NEST token?
Simon: Honestly speaking, we care about the price. For all crypto-currency project, the economic model is vital for long-term development. As you can see, NEST Protocol is evolving. Since the last version (NEST v3.5), we have made many important improvements including the removal of many unreasonable designs in the mining mechanism. In the coming 3.6 version, we will add more features and continue to perfect the protocol.
And don’t forget that NEST Protocol is completely driven by the community. Any protocol improvement proposal is welcomed in GitHub. I recommend everyone to study more about how NEST Protocol works and actively introduce its uniqueness to others. The more people who believe in its inner value, the higher the price will be. Done.
Question 5: What’s the plan for nYFI since its staking and quote mining has been stopped, what do we do with it?
Simon: All mining activities are driven by vision or profits. If mining is not profitable, some miners will shut down their mining scripts. When they figure out how to cooperate with other DeFi protocol like YFI, miners will come back and continue to mine nYFI around the same vision.
iJoJo: 4 more to go before community questions.
Question 6: Is the staking of other QP tokens like nHBTC, nWBTC still ongoing?
Simon: Yeah, anyone could mine and stake QP tokens. However, in NEST v3.6, users will not be able to stake their tokens to earn rewards. Cuz, NEST v3.6 will use the repurchasing model to reform the distribution of interests relationship between the old and new miners. Only in this way, NEST Protocol can attract more miners to quotation mining. But NEST holders can provide liquidity in CoFiX 2.0 or Parasset to earn interests after NEST v3.6.
iJoJo: Great Simon we almost done.
Question 7: What’s the milestone NEST core team will try to achieve this year?
Simon: Ok, In April, the NEST will launch its 3.6 version which will fully launch voting and other decentralized governance models to achieve comprehensive decentralization. After that, Parasset protocol will come online and start to use the Nest oracle price. And Nest core team will continue to improve the protocol.
NEST 4.0 will realize the random choice of miners for quotations, thereby alleviating the current community’s concerns about the concentration of miners.
NEST 5.0 will solve the problem of insufficient incentives for verifiers to improve the mandatory and effective price verification.
iJoJo: Great sir.
Question 8: Outline the ways through which a regular user can earn from the NEST Protocol system?
Simon: Good question. In Nest 3.5, you are still able to stake your NEST and QP tokens to get dividends. After 3.6, NEST holders could provide liquidity in CoFiX 2.0 or Parasset protocols to earn interests. Or you could be a miner to mine NEST or QP tokens. Or you could be a liquidator, Parasset protocol needs liquidation to maintain the stability of debt position.
iJoJo: Good answer. Let’s get the last question before we go into the community questions!
Question 9: Can we get an exact date for the release of v3.6 and what are its benefits?
Simon: NEST 3.6 will be launched in the middle of April.
1. NEST 3.6 will replace dividends with repurchase which will keep all quotation base fee inside the Nest ecosystem.
2. NEST 3.6 will launch voting and decentralized governance models to achieve comprehensive decentralization.
3. Based on NEST 3.6, CoFiX 2.0 will become the asset management protocol in Nest ecosystem. Nest holders could provide NEST/ETH liquidity to earn interests just like Uniswap.
4. Using Parasset protocol, users could mortgage your assets, synthesize parallel assets for mining, provide liquidity in the Parasset insurance pool. All operations need the price data from NEST oracle.
Refined (Nest Community Admin): Alright, let’s have the community send in their questions, we have 5 mins for this section.
Segment 3 (Community Questions):
Driver Chou: Hi Simon. What we will get if Using NEST/ETH provide liquidity?cofi?
Simon: Yes.
@a670205196: Besides studying technology, publicity is also very important. Will publicity be increased to attract investment in the next step？
Simon: Now, NEST will more focuse on the improvements. If we improve the protocol and I believe, profits will take them to our ecosystem.
Kingeh Park: The price to mine QP tokens are higher than secondary market, how is this going to be solved, no one is mining…
Simon: Thanks for your question, NEST 3.6 will lower the quotation scale of QP token from 30 ethers to 10 ethers. NEST Core is also designing the mining pool model for miners.
Driver Chou: Does NEST have plan to sale such as list on Binance?
Simon: NEST is completely community-driven. So, NEST is listed by exchanges. It’s decided by them.
Edith: Any marketing plans to help shoot up NEST Protocol?
Simon: As I just said, NEST protocol is completely driven by the community. I recommend you to study more about how NEST Protocol works and actively introduce its uniqueness to others. This will help NEST to get more attentions from big players in Crypto space.
Refined: Alright, that brings us to the end of today’s AMA, I believe all questions has been answered. You can say thanks to our guest Simon for his presence. Thanks Sir.
iJoJo: Great questions from the community.Simon thank you for sparing time to be here today.👏
Simon: Your Welcome.
Refined: Thanks everyone for your presence
(The AMA Ended Successfully.)
