Nest Protocol: Exploring the DeFi Project
Nest Protocol is a decentralized cryptocurrency platform, enabling token swaps, liquidity mining, and market price stabilization, all made possible by its integrated oracle.
Originally built on Ethereum, the Nest Protocol has now expanded to provide users with the flexibility to utilize both BSC and Scroll networks. Previously, we’ve published a dedicated guide on how to qualify for an airdrop on the Scroll blockchain.
Today we will delve in-depth into how the Nest Protocol operates within the DeFi sector and explore the potential of the NEST token.
The Origin Story
The groundwork for Nest Protocol (NEST) was initiated in 2020 with the ambitious goal of creating a cryptocurrency platform that enables token exchange at highly competitive prices. However, to this day, the founders of Nest Protocol have chosen to remain anonymous, keeping their identities undisclosed.
In May 2020, the governance token NEST was introduced, granting holders the authority to manage the project as part of a DAO.
Fundraising Rounds
The exact sum of money accrued during the fundraising rounds is unclear. However, the team presents a collection of cryptocurrency funds as partners, including Dragonfly, Cofix, PolyNetwork, Cube, and more. It is reasonable to conjecture that these companies were the key investors during the private round of the NEST token sale.
A list of Nest Protocol project partners and investors (www.nestprotocol.org)
Features of the Platform
The Nest Protocol presents its users with an array of advantages that facilitate working with DeFi. These include:
- A decentralized token swap capability, incorporating leverage usage and enabling the platform to serve as a derivatives cryptocurrency exchange;
- An opportunity to secure the best token exchange rates through an oracle, all without the need for conventional LP tokens or a market maker. This approach ensures almost unlimited liquidity;
- The protocol burns NEST tokens during platform usage, significantly mitigating token inflation;
- An NFT collection consisting of 10,000 tokens. Owners of these tokens are entitled to a portion of the income from Nest Finance;
- The ability to perform trading operations on the Scroll blockchain, potentially leading to future airdrops;
- The Nest Craft platform facilitates the creation of a protocol chain structure, empowering anyone to launch their own project on Nest.
A rundown of the main functions and tools of the Nest Protocol (www.nestprotocol.org)
The appearance of the NestFi trading platform (www.nestprotocol.org)
As per data from the DeFiLama analytics resource, the Nest Protocol currently boasts $13 million worth of assets locked within its ecosystem.
The NEST Token
The NEST cryptocurrency token operates as a settlement asset within the DAO. It's used for managing liquidity and setting up trading pairs on the NestFi platform. The asset also serves as a marketing instrument, enhancing the overall visibility of the project among both developers and users.
At the time of writing, CoinGecko analytics highlights the following characteristics of the NEST coin:
- Asset price – $0.011;
- Market capitalization – $70 million;
- Circulating supply – 5.9 billion;
- Maximum supply – 10 billion coins;
- Average daily trading volume – $600,000;
- ATH – $0.237;
- ATL – $0.005.
NEST can be traded on several cryptocurrency exchanges, including Huobi, Coinbase, MEXC, Gate, and Uniswap, among others.
NEST token price dynamics (coingecko.com)
Interesting Facts
- Nest boasts a "Liquidity on Demand" feature, enabling users to trade tokens with low or limited liquidity with minimal slippage;
- Nest Protocol incorporates cryptocurrency risk management tools such as options and contracts to insure open positions;
- Nest Protocol integrates additional tokens for managing trading pairs, such as the PUSD stablecoin and the PETH wrapped token.
