Nest Protocol

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Discover Nest Protocol's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Nest Protocol?

Nest Protocol (NEST) is a blockchain-based oracle network that provides reliable and timely pricing information to DeFi projects and decentralized exchanges. It uses a unique "quote mining" mechanism, where miners submit price quotes and verifiers confirm their accuracy, ensuring a trustless and decentralized system. The NEST token is the native token of the protocol, used for economic incentives and to facilitate the network's operations.

How is Nest Protocol used?

The Nest Protocol (NEST) is a blockchain-based oracle network that provides third parties with access to valuable pricing information. It operates on the Ethereum blockchain and uses a unique "quote mining" mechanism to ensure that off-chain data is synchronized with on-chain prices. Here's how it works:

  1. Miners: Users submit price quotes to the network, securing a specific asset value and paying a commission. They receive NEST tokens as a reward.

  2. Verifiers: They accept the quotes, lock a larger volume of the assets, and trade the price if it differs from the market price. They then submit a new quote to the chain.

  3. Price Callers: DeFi protocols or institutions pay a fee to use this information.

The NEST token plays a vital role in the actions of the network. Users need to hold NEST to join the network systems. NEST is an ERC-20 compliant token that can be found on most top-performing DEXs. Users can also leverage NEST to send value globally in a permissionless manner. The token is generated directly from miners through quote mining, and fees charged by the Ethereum network are returned to token holders, encouraging users to keep their NEST tokens.

How do I store Nest Protocol?

To store Nest Protocol (NEST) tokens, you have several options:

  • Exchanges' Wallets: You can store your NEST tokens on the wallets provided by crypto exchanges like Binance Wallet.
  • Crypto Wallets: You can use third-party crypto wallets like Trust Wallet.
  • Cold Wallets: For long-term storage, consider using cold wallets, which are more secure than hot wallets.

How to buy Nest Protocol?

To buy Nest Protocol (NEST) tokens, you can follow these steps:

Buying NEST on Centralized Exchanges (CEX)
  1. Choose a CEX: Select a reliable centralized exchange that supports NEST trading, such as MEXC or Pionex.
  2. Create an Account: Register and verify your account on the chosen CEX.
  3. Add Funds: Deposit funds using methods like bank transfer, credit card, or debit card.
  4. Buy NEST: Navigate to the NEST trading page and execute a buy order.
Buying NEST on Decentralized Exchanges (DEX)
  1. Choose a DEX: Select a DEX that supports the blockchain on which NEST operates, such as Uniswap or Pancakeswap.
  2. Get the Mainnet Cryptocurrency: Purchase the mainnet cryptocurrency (e.g., ETH for Ethereum-based DEX) using fiat.
  3. Set Up a Wallet: Download and set up a compatible crypto wallet like Metamask or Trust Wallet.
  4. Transfer Funds: Transfer the mainnet cryptocurrency to your wallet.
  5. Connect to DEX: Connect your wallet to the DEX.
  6. Swap for NEST: Use the "Swap" option to exchange your mainnet cryptocurrency for NEST.
Additional Tips
  • Ensure the CEX or DEX you choose supports NEST trading.
  • Be cautious of scams and fake tokens on DEX.
  • Verify the smart contract address of NEST if it does not appear in the DEX list.
  • Understand the risks associated with cryptocurrency investments and consult financial advisors if needed.

By following these steps, you can successfully purchase Nest Protocol (NEST) tokens.

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History of Nest Protocol

Nest Protocol (NEST) is a cryptocurrency token native to the Nest Protocol, a blockchain oracle that provides a secure way to integrate real-world price data into the DeFi ecosystem. The protocol started trading in July 2020, initially priced around $0.03. The price surged in August 2020 as it got listed on more exchanges, riding the popularity of DeFi at the time. This growth was likely fueled by the anticipation of a major DeFi conference and the token reached an all-time high of $0.2382 on August 10, 2020.

After this peak, the price declined sharply, stabilizing around $0.05-$0.06 by mid-September. Despite strategic partnerships, the price continued to fall, reaching $0.02-$0.03 by the end of 2020. The crypto bull run in early 2021 briefly lifted the price above $0.05, but it eventually fell to new lows around $0.01 by late May 2021, where it remained until the summer of that year.

In terms of significant events, Coinbase announced the planned listing of NEST tokens in July 2022, labeling it as an "Experimental Asset." Additionally, NEST's RSS feed was integrated with Crypto.com's price page in May 2022, allowing users to access NEST price data directly.

Today, NEST continues to operate as a decentralized oracle, providing a stable price stream through its verification system. The token's price is influenced by market sentiment and trading activity, with predictions suggesting it could rise significantly in the coming years.

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How Nest Protocol works

The Nest Protocol (NEST) is a decentralized price prediction platform built on the Ethereum blockchain. It aims to provide reliable and accurate price information to DeFi projects, ensuring that market data is trustworthy and resistant to manipulation. Here's how it works:

Key Components
  1. Oracle Distributed Pricing Network: NEST uses a unique "quote mining" mechanism to synchronize off-chain value information with on-chain prices. This ensures that price data is decentralized and not controlled by a single entity.

  2. Three Main Network Participants:

    • Miners: They provide price quotes to the network, securing asset values and receiving NEST tokens as a reward.
    • Verifiers: They accept and validate the quotes, locking a larger volume of assets. If the quoted price differs from the market price, verifiers trade the price and submit a new one to the chain.
    • Price Callers: These are DeFi protocols or institutions that pay a fee to use the price information provided by NEST Protocol.
How It Works
  1. Quote Mining: Miners provide price quotes, which are then verified by verifiers. This process ensures that the price data is accurate and trustworthy.

  2. Reward Mechanism: Miners receive NEST tokens as a reward for providing quotes. This incentivizes participation and maintains a balanced network distribution.

  3. Decentralized Price Oracle: NEST Oracle uses a decentralized non-cooperative gaming network, arbitrage, and two-way options to determine the final price. This mechanism ensures that the price is stable and reflects the real market value.

NEST Token
  1. Economic Incentives: NEST tokens are used as economic incentives within the protocol. They are issued on the Ethereum blockchain, following the ERC20 standard, with a maximum supply of 10 billion tokens.

  2. Token Issuance: Tokens are not issued in advance and can only be issued through quote mining. Fees charged by the Ethereum network when submitting quotes are returned to token holders, encouraging users to keep their NEST tokens.

Benefits
  1. Unlimited Liquidity: NEST Protocol provides traders with unlimited liquidity through risk sharing, eliminating the need for market makers and liquidity providers.

  2. Stable Price Oracle: The decentralized price oracle ensures that price data is accurate, stable, and resistant to manipulation.

  3. Deflationary Economic Model: As users burn NEST tokens to buy financial assets, the NEST price rises because the burned tokens exceed the generated tokens.

Overall, NEST Protocol offers a robust and decentralized solution for price prediction, providing a reliable and trustworthy source of market data for DeFi projects.

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Nest Protocol's strengths

The token Nest Protocol (NEST) has several strengths that contribute to its value and potential in the cryptocurrency market. Here are some of the key strengths:

  1. Decentralized Oracle Network: NEST operates as a decentralized oracle network, providing accurate and timely pricing data to DeFi projects, DEXs, and other platforms. This decentralized nature ensures that the data is reliable and less susceptible to manipulation.

  2. Nodeless Permissionless Quotation System: NEST's unique system allows miners to submit quotes for verification, which are then combined to ensure accuracy. This process incentivizes miners to provide accurate data, as they must lock assets in a smart contract to participate.

  3. Incentivization Mechanism: The protocol's incentivization system rewards miners with NEST tokens for submitting quotes, promoting a balanced network distribution and encouraging users to hold their NEST tokens longer.

  1. Security and Redundancy: NEST's decentralized nature and self-healing characteristics make it a secure option for developers. The protocol can eliminate oracles that don't provide correct information, ensuring the accuracy of the data.

  2. Low Costs: NEST's decentralized approach eliminates the need for third-party oracle management, reducing costs and delays for users.

  3. Customizable and Programmable: NEST allows developers to build their own oracle solutions and create customizable stochastic information-based assets, providing a high degree of flexibility and programmability.

  1. Deflationary Economic Model: The NEST token's economic model is designed to be deflationary, where users burn NEST to buy financial assets, which can lead to a rise in the NEST price.

  2. Wide Adoption: NEST has been listed on several exchanges, including MEXC, and has been integrated with various platforms, such as Crypto.com, increasing its accessibility and usability.

These strengths position NEST as a robust and reliable decentralized oracle protocol, offering a range of benefits to users and developers in the DeFi and cryptocurrency space.

Nest Protocol's risks

Nest Protocol (NEST) carries several financial risks that investors should be aware of. One of the primary risks is the potential for significant losses due to leverage. This is particularly relevant in the context of decentralized exchanges (DEXs) and DeFi protocols, which rely on accurate pricing data to function properly.

Additionally, NEST Protocol receives a high risk rating from InvestorsObserver analysis, indicating that the token is susceptible to price manipulation due to low trading volume and market capitalization. This means that a relatively small amount of money can significantly impact the token's price, making it a high-risk investment.

Another risk associated with NEST is the potential for inaccuracies in the pricing data provided by the oracles. While the decentralized nature of the NEST Protocol helps mitigate this risk by cross-referencing data from multiple oracles, there is still a possibility of manipulation or errors in the data.

Furthermore, the NEST token's value can be affected by the performance of the Ethereum blockchain, as it is an ERC-20 compliant token. Any issues or volatility in the Ethereum network can, in turn, impact the value of NEST.

Overall, investing in NEST Protocol involves a range of financial risks that investors should carefully consider before making a decision.

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Did Nest Protocol raise funds?

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Nest Protocol’s team

  • Charles Anderson: Founder and CEO of NEST, responsible for leading the development of the protocol and its vision for decentralized trading infrastructure.
  • Kim W.: Co-founder and finance professional, contributing to the financial aspects of the project.
  • Aman Deol: BD & Product at NEST, involved in business development and product strategy.
  • Niraj Trivedi: Design Team Lead, responsible for the visual and user experience aspects of the protocol.
  • Gilly Strauss: Team member, contributing to the overall development and growth of NEST.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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