NEST Protocol v3.6 as an On-chain Non-cooperative Gaming Economic System
By: Nest Protocol
Tags: Blockchian, Dao, Oracle, Non Cooperative, Economics

What is NEST Protocol

NEST Protocol is a decentralized price oracle network which synchronizes the off-chain price information on chain by means of miners quoting as well as combines with NEST mining mechanism to provide incentives to quotation miners, making it a logically closed-loop distributed quote system — — Anyone can pay fees for quotation mining and receive NEST token. If the quotation does not match the market price, the challenger can double pledge, updating the price and making a profit.

NEST Protocol’s miner quotes by pledging the tokens of the quoted trading pair. For example, pledging both 10 ETH and 3,800 USDT means that the miner’s quotation for ETH is $380/ETH. When the quotation is incorrect, the arbitrageur can buy either side of the quotation miner’s pledged token within 25 blocks (currently about 5 minutes) thus making a price correction.

If the quotation is not challenged within 25 blocks, it means that the quotation cannot be arbitrated and will be used by the NEST Protocol downstream DeFi application. There is no similar validation process in other oracles, so other oracles cannot guarantee their quotations not be arbitrated. In addition, NEST Protocol can achieve a quotation for each block. Since the time on-chain consists of blocks, this kind of quotation efficiency is the highest efficiency.

If a malicious quotation is made on the NEST Protocol, a large arbitrage potential will be exposed unless the quoter continues double pledging to maintain the quotation. The cost of a malicious quotation of the asset will exceed the total current ETH supply in an hour. Therefore, NEST Protocol is resistant to malicious quotations.

NEST Protocol v3.6 as an On-chain Non-cooperative Gaming Economic System

NEST Protocol v 3.6 will enter decentralized governance by the official launch which takes an extremely important step in the development of adhering to the blockchain essence.

Starting from production, BTC realizes data tamper-proof through non-cooperative game（Transfer）, ETH realizes logic tamper-proof through non-cooperative game（Smart Contract）, NEST realizes exchange rate tamper-proof through non-cooperative game（Price Information Flow）. In the future development, the price information flow derived from NEST Protocol will be widely used and a series of financial products will be launched one after another. There are already several protocols in design such as CoFiX 2.0, Parasset, Tank, Fort, etc. Let’s wait and see.

About NEST LABS

NEST LABS was initiated by the NEST community to promote the global ecological layout of the decentralized oracle NEST Protocol and its products. 25 million NEST was donated to NEST LABS by the NestCore team and NestNode group in the name of the community mainly for the development and operation of NEST infrastructure, NEST brand promotion and marketing cooperation, the formation and development of NEST eco-investor community, the incubation of NEST eco-projects and the expansion and maintenance of partner relationships.

About NESTFANS

NEST Enthusiast Forum (nestfans.com) founded in July 2019 is an independent forum initiated by the NEST miners group and is the earliest autonomous organization initiated in the NEST ecology.

NESTFANS is dedicated to the promotion and popularization of NEST Protocol in the Chinese market, hoping more blockchain developers can fully understand NEST oracle and have a degree of awareness then they can develop some “breakthrough” and “innovative” DeFi protocols based on NEST oracle to better facilitate the application of blockchain technology and the development of DeFi industry. The goal of NESTFANS is to build a blockchain communication center in Chinese and make unremitting efforts to build an open-source culture.

Other Information

Website: https://nestprotocol.org/

White paper: https://nestprotocol.org/doc/zhnestwhitepaper.pdf

GitHub: https://github.com/NEST-Protocol

Twitter: https://twitter.com/nest_protocol

Telegram (community): https://t.me/nest_chat

Telegram (developers): https://t.me/nestdevs