Nest Protocol Defi Coins Review – A Detailed Review About Leonicorn Swap

About Nest Protocol

Nest Protocol is a blockchain-based probability virtual machine (PVM) system with web3 applications of DeFi, GameFi, NFT built on it. Swap, hedge, earn and even game with the NEST network to gain excess returns. Most Decentralized Finance (DeFi) protocols require price data of various assets to settle
on-chain contracts, and this is especially true for assets involving stablecoins and futures, which require the underlying assets’ spot price information. The price information is one of the primary sources of risk in the DeFi industry in most cases. As a result, the stability and security of pricing oracles are critical to the future of decentralized finance.

Quick Fact About Nest Protocol

NEST Price Live Data

The live NEST Protocol price today is $0.033034 USD with a 24-hour trading volume of $2,272,304 USD. They update NEST to USD price in real-time. This is up 0.19% in the last 24 hours. The current CoinMarketCap ranking is #267, with a live market cap of $96,186,765 USD. It has a circulating supply of 2,911,743,948 NEST coins and a max. supply of 10,000,000,000 NEST coins.

If you would like to know where to buy NEST Protocol at the current rate, the top cryptocurrency exchanges for trading in NEST Protocol stock are currently CoinTiger, MEXC, Huobi Global, Phemex, and Gate.io. You can find others listed on crypto exchanges page.

The Challenge of Price Oracles

Price oracles commonly used in the DeFi industry generally reflect the asset price of centralized exchanges by “trusted” nodes, where the price is “uploaded” to the chain for usage by DeFi protocols. There is a basic problem with verifying such price data. Some DeFi projects utilize price data gathered from decentralized exchanges, however, because transaction volume is minimal, the pricing data is readily manipulated and vulnerable to attack. This creates a clear market need for an Oracle solution that directly checks the pricing to ensure the information is correct and timely but is also prohibitively expensive to attack. This system should also be decentralized to reduce the risks of centralization

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NEST Solution

Nest Protocol provides a creative solution, including collateral asset quotation, arbitrage verification, price chain, beta coefficients, and other modules to form a complete NEST protocol. Taking the Ethereum network as an example, the schematic diagram of the NEST protocol is described in Figure 1 below and we will discuss the details in the following subsections.

Price Model of NEST Oracle

NEST oracle is the only truly decentralized oracle on the market today: given an off-chain price stream, how to design a decentralized game such that the game equilibrium can output a price stream with the smallest possible deviation from the off-chain price stream. NEST oracle solves this problem with quotation mining, two-way options, validation cycles, price chains and β factors. NEST provides a price sequence that does not change the distribution of asset prices but approaches a discrete sampling model, which is determined by the structure of the decentralized game,

Where the quote deviation and quotation density depend on the depth of the arbitrage market and the price of the NEST token. Overall, NEST provides an efficient decentralized oracle that maintains the fundamental traits of asset prices. In practice, we tend to use highly efficient market prices, and hence choose the most liquid underlying assets such as BTC and ETH, etc.

Quotation Mining and Price Verification

One can easily start a quotation channel via NEST protocol where he/she needs to set the quotation pairs (one channel allows multiple pairs), quotation scale, commission fee, the token and scale of the collateral, etc. Taking ETH/USDT as an example, miner O intends to quote a price of 1 ETH = 100 USDT. At this time, miner O needs to input the collateral NEST and the quoted assets, ETH and USDT, into the quoted contract. The scale is x ETH and 100x USDT, and the paid commission is λx ETH. Miners participate in mining based on a commission scale to earn NEST. The whole process is completely open and transparent, that is, anyone can assume the role of O, and the price and scale are set independently.