Aug 13, 2020
[Review] Huobi x NEST AMA
Yesterday’s Huobi x NEST AMA was a great success!
In the first section, William gave a brief intro of himself and NEST:
I’m NestFan — William, I’m from the NEST Community. I have been working in the NEST ecosystem for 1 year. I am very happy to share and exchange NEST Oracles with friends from Huobi.
NEST is a distributed price oracle protocol which was launched on the main Ethereum network in December 2019. It uses a unique “quote mining” mechanism to motivated that the off-chain price is directly generated on-chain. As the most important infrastructure in the Web3.0 era, NEST oracle will be generated in the process of promoting the application of blockchain technology. The NEST token is the native token of the decentralized price oracle network NEST protocol.
🔹Project Information:
📖 White paper https://nestprotocol.org/assets/pdf/ennestwhitepaper.PDF
Client(NEST Dapp): http://nestdapp.io/
NEST DAPP Android version download address: https://nestdapp.io/download/nest.html
NEST DAPP iOS test flight version download address: https://testflight.apple.com/join/xjJCIXwN
🔹NEST-related social media and community 📱
(sponsored by NEST enthusiasts all around the world)
Twitter:https://twitter.com/BruceYang_NEST; https://twitter.com/fan_nest
Telegram：https://t.me/nest_chat
Medium：https://medium.com/nest-consensus-labs
NestFans：https://www.nestfans.com
In the second section, William answered 10 questions collected from the community and shared his insightful opinions with both communities
🔹1. How do you describe NEST in a single sentence?
NEST is a distributed price oracle protocol that was launched on the main Ethereum network and It uses a unique “quote mining” mechanism to motivate the off-chain price which is directly generated on-chain.
🔹2. What’s the NEST Oracle quote rules and verification rules?
Miners provide price quotes and pay commissions to receive NEST tokens。
Taking ETH/USDT as an example, if miner X intends to quote a price of 1 ETH = 200 USDT, miner X needs to put 10 ETH and 2000 USDT into the quote contract and pay 1% commission which is 0.1 ETH. Miner X gets NEST tokens as reward. Anyone can become a miner.
After miner X submits the assets and price to the quote contract, there is a 25 block / 5 minute verification period. Anyone believes that the price has an arbitrage opportunity can trade either ETH or USDT . This mechanism ensures that miner X’s price is fair price in the market. Otherwise it will be taken up by an arbitrager. Miner X can take the assets back after the verification period. If the price submitted by miner X survives after the verification period, it goes into the price feed.
🔹3. Staking & Mining is very popular today as incentives, so does #NEST support any and what are the requirements? Does need to run a separate node to participate in Staking? For people without technical expertise, how do they get involved in Staking?
Right, staking and mining is very popular topic today. Yes, NEST support both of them. You can staking NEST on Huobi Pool and you also can staking NEST on NEST DAPP to get ETH.
More details post on https://medium.com/nest-consensus-labs/nest-holders-get-nest-oracle-system-eth-benefits-tutorial-graphic-version-7416af459913
If you can participate in quote mining, You can use NEST dapp to quote mining. Download NEST Dapp: http://nestdapp.io/Also if you are a developer , you can quote mining by interacting directly with the NEST contract interface. NEST protocol Github: https://github.com/NEST-Protocol
🔹4. What’s the main release content of NEST 3.0? What has been improved, and what’s the roadmap NEST planning 2020?
As we know, NEST 3.0 was released on July 13th and the main release content of NEST 3.0 is 4 parts:1) The NEST if officially open to the public; 2) NEW nToken system will support any ERC20 Token/ETH price of Oracle; 3)New voting system and it will support NEST Protocol decentralized governance; 4) Optimization and adjustment of Systems
For the roadmap of planning 2020 will focus 2 parts: 1) Increase the quotation density of high-quality Token oracle machines on Ethereum, and form a stable and safe oracle price on the chain for downstream DEFI transfer; 2) In the NEST ecosystem, more effort should be made to build a developer community based on the NEST oracle, so that more entrepreneurs and developers who are interested in DEFI can participate in Nest. Form a DEFI developer community which based on NEST.
🔹5. How is NEST different from Chainlink?
What difference between Chainlink and NEST Oracle machine, this is the most questioned question and let’s introduce it.
1） The NEST price oracle program can effectively verify the price data, which is completely accord with the blockchain consensus logic; while the LINK indirect oracle program cannot effectively verify the price data, that can only trust those nodes that upload the data.
2） NEST is a highly decentralized oracle protocol that can never shut down and has long-term development advantages
3） The NEST community has a group of high-quality DEFI users who are very appreciative of the decentralization spirit and NEST consensus.
4） The NEST community has a group of core developers who are at the forefront of the industry in the field of blockchain technology and financial innovation, who will have a great impact on the downstream ecological development of NEST.
🔹6. Why is the core of the NEST Protocol the NEST token? What is the role of NEST in the NEST ecosystem?
NEST token is the native token of the decentralized price oracle network NEST protocol. Total supply: 10 Billion and 100% released through quote mining mechanism, no pre-mining, no ICO, no early release. The NEST Mining & decay mechanism will follow: The mining reward for each block is 360 NEST. Decrease by 10% every 2.4 million blocks (about 1 year). If you hold NEST that you can obtain system income from distribution. Therefore, I think NEST is an important role of NEST Protocol.
🔹7. What are the advantages of the NEST project to most Defi projects currently on the market? Will there be some innovation?
Good question, as I mentioned that NEST Oracle is completely accorded with blockchain accord with the blockchain consensus logic and it is a highly decentralized oracle protocol that can never shut down and has long-term development.
The innovation of the NEST oracle solution is that every piece of price data is a price that has been agreed by market verifiers and conforms to the blockchain consensus mechanism. The NEST oracle directly generates price data on the chain instead of uploading price data. This is the essential difference between the NEST oracle solution and other solutions.
🔹8. How does NEST view the development of decentralized finance (DeFi) system? How do you see its importance in the future?
Right, because NEST oracles are allocated 80% of incentives to quotation miners, and NEST developers only account for 5%, so NEST is destined to be a highly decentralized and market-oriented project.
Decentralization is bound to be a long and difficult path, but it is also the most tenacious of vitality. It is precisely because of the decentralization of NEST that it gives more people the opportunity to participate and gives more people the opportunity to show their abilities. NEST oracle program can provide highly deterministic price data to help the large-scale development of DEFI.
Currently, the Force Protocol and 3 DEFI protocols in the NEST community (lending, flash swap, stable currency) using the NEST oracle are developing right now.
DEFI is very hot topic in this year, so that I am as optimistic about the future development of DEFI as well.In this process, there will inevitably be some bubbles. After the bubbles, DEFI will precipitate some very valuable things.
If you are also optimistic about the future development of DEFI, you must pay attention to the development of the oracle. If there is no good oracle, DEFI cannot develop on a large scale.
🔹9. Safety and security are always the most important things. So what is the security mechanism of NEST to ensure user assets do not become the target of hackers?
The core mechanism of NEST oracle machine is: Two-way quotation-the verifier takes the order. If the verifier finds that there is a deviation between the price of the quoted miner and the market price, and there is arbitrage space, then it will take the order arbitrage. While taking the order, the verifier will also leave a new quote, and the quote size is X2.
In other words, if someone maliciously quotes or maliciously takes an order, he will inevitably open an arbitrage space to the market. At this time, all validators in the market will come to arbitrage and correct the price. If the attacker continues to attack, then the arbitrage space he provides will be multiplied, the attack cost will grow exponentially and infinitely high, and it will eventually fall into the attack death spiral, stop the attack, and the attack will fail.
This point is described in detail in the NEST white paper: For example, if the NEST oracle is attacked for about 1 hour (the price is not updated for 1 hour), the quotation scale is 10 ETH, and the miners do not deliberately increase the quotation, and each block is quoted. The attack needs to spend about 1 million ETH, and the cost of such an attack is very high.
🔹10. Now defi is one of the hottest topic in the blockchain space. Can you explain What are the Importance of an Oracles in the deFi ecosystem?
Oracles are the foundation of the entire ecosystem, as all applications depend on accurate data. Compound is another DeFi product that allows the borrowing and lending of assets through collateral, adjusting interest rates based on demand on the borrow/lend side. As a distributed price oracle machine, NEST solves the problem of price data on the chain through a decentralized incentive scheme. Therefore , I think NEST can work with other DEFI project to make DEFI industry more better.
In the third section, William picked 8 impromptu questions from the community.
1. Can You please explain about Quote Mining? Who & How can Anyone Join Quote Mining?
https://medium.com/nest-consensus-labs/nest-holders-get-nest-oracle-system-eth-benefits-tutorial-graphic-version-7416af459913 there who hold NEST can join
2. How does NEST keep their oracles decentralized?
Right, because NEST oracles are allocated 80% of incentives to quotation miners, and NEST developers only account for 5%, so NEST is destined to be a highly decentralized and market-oriented project.
3. DEFI is the hottest trend today. Has NEST had or will there be updates in the roadmap related to DEFI? $NEST
Yes, If you are also optimistic about the future development of DEFI, you must pay attention to the development of the oracle. If there is no good oracle, DEFI cannot develop on a large scale.
4. What is the purpose of your project?
1) Increase the quotation density of high-quality Token oracle machines on Ethereum, and form a stable and safe oracle price on the chain for downstream DEFI transfer;
2) In the NEST ecosystem, more effort should be made to build a developer community based on the NEST oracle, so that more entrepreneurs and developers who are interested in DEFI can participate in Nest. Form a DEFI developer community which based on NEST.
5. What is NEST project vision and mission?
The lastes NEST 3.0 will be released on the #Ethereum mainnet
Core Content:
1.Open to the public
2.Support any #ERC20 Token/ETH price Oracle
3.New voting system
4. Optimization and Adjustment
6. What are the main differences between NEST 2.0 and NEST 3.0?
NEST protocol version 2.0 , you can get ETH income distribution, and the annualized income in the near future is about 25%.
— version 3.0 released, you can also get nToken income distribution.
Participate in community governance，NEST DAO will release with NEST protocol 3.0 in the near future. I think the main difference is nToken
Now there are these Token oracles supported by NEST oracles:
USDT、HBTC（huobi’s BTC Token）、HT、BIX、DAI、HPT、imBTC、HUSD、OKB、MX、WBTC、MKR、LINK、BAT、TUSD、USDC、PAX、BUSD、KNC、LRC、LEND、ZRX、COMP、MANA、SNX
Among them, ETH/USDT has the highest quotation density, with a quotation generated every 4 blocks; secondly, the quotation of HBTC/ETH is also gradually increasing.
7. Why do you choose to list NEST on Huobi?
We think Huobi is good platform and we already list on their huobi pool, By the way, Huobi and NEST both of us are optimistic about the future development of DEFI.
8. What is the next goal of NEXT project?
We have plane on other DEFI project — BaseLabs is an encryption laboratory focusing on DEFI infrastructure construction and investment.
BaseLabs has:
1. NestPool mining pool, NEST oracles offer mining;
2. DeFiHub platform, DeFi data analysis aggregation platform;
3. BaseLabs fund, DeFi liquidity mining and investment.
BaseLabs was born in the NEST ecosystem. In the future, it will fully support the NEST quotation and escort the safety and stability of the NEST oracle; the DeFiHub platform will actively access the DEFI protocol developed based on the NEST oracle; the BaseLabs investment fund will deeply participate in these DEFI protocols. Liquidity mining and investment.
In the last section, we prepared 6 related quizzes and aroused active participation among users.
After the AMA, we have received numerous positive feedback from the community, which motivates us to deliver better events in the future.
🔹Join our official telegram https://t.me/huobiglobalofficial.
Stay tuned for the next AMA soon!
