What is NASDEX?
NASDEX is a decentralized exchange that offers our users the ability to trade tokenized equities on the blockchain via our minting and trading mechanism that mimics the off-chain economics of the real world equity price. On NASDEX, users can mint, trade, farm, long and short equities.
What Chain is NASDEX built on?
NASDEX is primarily deployed on the Polygon chain.
What is $NSDX token?
$NSDX is the native token of the NASDEX ecosystem, it is currently deployed on the Polygon network and Binance Smart chain. $NSDX is the basis of reward for users who assume the role stakers within the NASDEX ecosystem; it will also be used as collateral for minting tokenized equities on NASDEX as development continues.
Contract Addresses for $NSDX
Polygon Network: 0xE8d17b127BA8b9899a160D9a07b69bCa8E08bfc6
Binance Smart Chain: 0x417871f0682db63924b931fc16ba3ff40343cdcb
How does NASDEX work?
NASDEX acts as a decentralised exchange that allows users to trade tokenized equities. The NASDEX platform is developed to allow users to mint their favourite stock, take on short or long positions on those minted stocks as well as stake them to earn rewards in $NSDX token.
To properly understand how NASDEX works to enable users perform these various activities, roles have been put in place on the platform to allow users assume.
Roles users can assume in NASDEX
nAsset Minter
As an nAsset Minter on NASDEX, users will be able to mint tokenized stocks by opening a collateralized debt position (CDP). At Launch NASDEX will accept collateralization in $USDC at a minimum of 150% collateralization ratio, with 200% collateralization being the recommended safer option.
Liquidity Provider(Long Farmer)
Liquidity providers on NASDEX will provide equal amounts of nAssets and $USDC to liquidity pools on NASDEX. In return they will receive LP tokens representing their share of assets in the respective liquidity pool.
Short Farmer
As a short farmer users will be required to open a CDP on NASDEX similar to an nAsset minter, but this tokenized stock will be immediately market sold.
Trader
A trader will be able to swap assets such as stablecoins and tokenized stocks against the liquidity pools on NASDEX, to establish long positions on the underlying stock or close their long position on the underlying stock.
$NSDX Stakers: $NSDX stakers will stake their $NSDX tokens on NASDEX and receive a share of the revenue generated by the protocol from minting and trading.
Read more about NASDEX working Mechanism here:https://medium.com/@nasdex/understanding-nasdex-product-mechanism-71fd394dd277
How does NASDEX collect Off-chain price data?
NASDEX has two Oracles integrated which helps bring off-chain price data of stocks trading on NASDEX on-chain. The two available oracle integrations are Chainlink and Band Protocol.
How can I access NASDEX app?
NASDEX is available for use via the URL https://app.nasdex.xyz
Here’s a detailed tutorial on how to use NASDEX platform: https://medium.com/@nasdex/tutorial-how-to-use-nasdex-f83a01c171ca
What is a Collateral Debt Position(CDP) on NASDEX?
A Collateral Debt Position on NASDEX is a position created when the user deposits collateral to mint a synthetic asset on the platform.
Is the high risk factor during minting on NASDEX based on how far above or below the liquidation price?
A CDP of 150% is right on the liquidation price that’s why a CDP at 200% is recommended. At 200%, the stock can still go up to say 33.3% before you get liquidated.
In trying to mint on NASDEX, I see that 150% is a “higher risk”, what does that mean since the mechanism details 150% as the minimum?
The reason for the “higher risk” prompt is because below 150% CDP you will get liquidated. For example, if the price of SE stock is $10, you are able to mint 1 unit of this stock at a collateralized value of $15 worth of $USDC which is exactly 150% ratio. If the stock price goes to $10.5, your collateralization ratio becomes 142% and this will mean you get liquidated because according to the mechanism minted assets need to have collateralized positions above 150%.
$NSDX token cant be used as a collateral, does that make it useless?
The V1 Of NASDEX uses $USDC as collateral for minting of stock but more developments are in place to ensure $NSDX becomes the basis of collateral deposits on NASDEX.
What is the fee needed for minting an asset on NASDEX?
There is currently no fee attached to minting an asset on NASDEX ,you just have to pay for the gas fee on the Polygon network. Fees are not attached to transactions on launch of NASDEX to enable users to learn about the platform better.
What can I do with my minted nAsset?
nAsset on NASDEX can be used to take a long or short position on NASDEX.
What would be the advantage of swapping an nAsset directly over minting it?
There isn't any difference in the two routes to getting an nAsset.
Is liquidation on NASDEX full or partial?
Liquidations on NASDEX are partial.
Where can I find more information about NASDEX?
You can read through our product document on Gitbook: https://nasdexofficial.gitbook.io/nasdex/
About NASDEX
NASDEX is the premiere decentralized exchange enabling the trading of Asian stocks on-chain. It is designed to serve as a bridge between the crypto world and the equity world. Its core benefits and differentiation includes stock yield enhancement through liquidity mining and special focus on Asian stocks. It’s product offering includes ETFs, indices, and additional asset classes and derivatives as well. A user-friendly platform where investors could buy and sell tokenized equity as easily as crypto with 24/7 trading, fractionalized share buying, and yield farming.
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