Nest Protocol update: NEST Live price, price chart, news and markets

Introduction to the Nest Protocol (NEST)

The Nest Protocol, known as NEST, is a distributed oracle network that operates on the Ethereum mainnet. It leverages a unique mechanism called "quote mining" to generate off-chain price data and bring it on-chain in a synchronous manner.

The Purpose of the Nest Protocol

Price oracles play a vital role in the DeFi industry by providing price data for different assets on centralized exchanges. However, there is an inherent challenge in validating the accuracy and reliability of this data. Decentralized exchanges, which are relied upon by some DeFi projects for price data, often have low trading volumes, making the data vulnerable to manipulation and attacks. The Nest Protocol was developed to address these issues by offering a decentralized oracle solution that ensures accurate and timely price data while minimizing the risk of attacks.

The Nest Protocol ensures that price data from oracles meets the following five key criteria:

• Accuracy
• Real-time updates
• Resistance to attacks
• Confirmation by intermediaries
• Distributed price data delivery system

Key Features of the Nest Protocol

The Nest Protocol tackles the on-chain price problem through its price predictor mechanism, which involves three parties: Miners, Verifiers, and Price Callers.

• Miners: These participants provide quotes and pay a commission to receive NEST tokens.
• Verifiers: Verifiers validate the quotes provided by Miners. If a quote deviates from the market price, Verifiers trade at that price and provide a new, more accurate price for inclusion in the chain.
• Price Callers: Price Callers, typically DeFi protocols or organizations, pay a fee to utilize the Nest Protocol.

Anyone can become a Miner or Verifier within the Nest Protocol.

To understand how the Nest Protocol operates, let's consider an example using the ETH/USDT pair.

A Miner records the price in the contract, such as 1 ETH = 450 USDT. The Miner enters these assets and their price ratio into the contract and pays a fee to receive NEST tokens.

After recording the price in the contract, there is a waiting period of approximately 5 minutes. During this time, two scenarios can occur:

• Scenario 1: If there are no transactions involving the price, it is added to the price chain for the Price Caller to use.
• Scenario 2: If the contract price is traded, it is considered invalid as it deviates from the market price. In this case, a Verifier identifies an arbitrage opportunity and trades at the deviated price, providing the contract with a more accurate price.

Miners strive to offer the most cost-effective transactional price to minimize their costs within the Nest Protocol.

In addition to the price verification mechanism, the Nest Protocol also mitigates attacks by increasing the cost for attackers. Attackers must provide a replacement price and equivalent assets after an attack. This ensures that either the attacker provides the exact price or forfeits the arbitrage opportunity.

The potential applications of the Nest Protocol include Equilibrium token, decentralized trading, automatic payment mortgage, futures, and volatile products.

Roadmap

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