NESTFI-Win — a shared-price Oracle network development project on the Ethereum blockchain.
How does NESTFI-Win work?
The NEST network is built on its own benchmark price system, called Quote Mining, which anyone can participate in, and NEST tokens that act as economic incentives on the network. Due to its open and decentralized nature, which anyone can participate in, it is expected to be widely used in DeFi (decentralized finance).
Some features:
| 1. | The NEST network consists of contracts or accounts, as well as miners and verifiers who provide prices. |
| 2. | Miners and verifiers receive prices from external sources in accordance with the following flow and guarantee the accuracy of prices. |
The process of obtaining prices in NEST begins with the fact that network participants, called miners, submit quotes (transaction rates that will be offered to counterparties) to the contract. One of the differences between NEST and other Oracle projects is that in this quote mining process, miners must lock in their target assets in a contract. Currently, the miner needs to pay 1% ETH as a fee, but he can receive NEST tokens as a reward.
Quotes, offered by miners, are verified by network members, called verifiers. At this stage of verification, the verifier examines whether there are any arbitrage trading opportunities in the quotes, provided by the miner. Like miners, anyone can participate in this price verification process as a verifier. Once the verification period ends, the miner can receive the locked assets at any time. The prices, determined in this process, are recorded on the blockchain.
What is NEST token?
NEST tokens — tokens, used as economic incentives in the NEST protocol, and they are issued on Ethereum in accordance with the ERC-20 (Ethereum token issuance standard). The maximum number of tokens that can be issued is set at 10 billion NEST, but it is unique in that it is not pre-issued and can only be issued by miners through quote mining.
Miners will be able to submit quotes and receive NEST as a reward for contributing to the protocol. Fees, charged by ETH when submitting quotes, will be refunded to NEST holders. Thus, users will be interested in conducting NEST. In addition, users who want to use the price information, calculated by NEST (basically a DeFi protocol), must pay a fee in ETH. A portion of this commission will be returned to NEST holders. Therefore, the more users a protocol has, the more fees will be returned to NEST holders.