2022 NEST Protocol Annual Summary
2022 is a year of exploration for NEST…
Macro Environment
Russia-Ukraine war, Terra collapsed, FTX collapsed, Fed rate hike… The external environment and unforeseen events in 2022 have caused wave after wave of declines in the entire crypto industry. Every project in the industry was affected by these macro-adverse factors, and NEST was no exception, bearing the negative beta of the industry in 2022 and moving forward. Fortunately, we have the best team in the industry, and throughout 2022, BTC fell 60% while NEST rose 232% against the trend, and was selected by CoinGecko as one of the best-performing 8 projects in 2022, all thanks to the hard work of the team and the support of the NEST community.
Project Building
FORT — Exploration of Decentralized Derivatives
In 2022, the decentralized Oracle has not yet seen its opportunities, so the NEST team started exploring decentralized derivatives protocols in early 2022 and launched a brand new project based on the NEST Oracle, FORT, a decentralized derivatives trading platform based on the Omnipotent Liquidity Model (OMM), with products including perpetual futures, options. Before Terra’s collapse in March, FORT’s highest daily trading volume reached $3M, which was second only to dydx among all decentralized derivatives trading platforms at that time, however, just when we thought we were going to take the first place in decentralized derivatives, Terra’s collapse paused our growth, all decentralized derivatives protocols were hit, users’ trust in Defi plummeted. We also saw the volume of our transactions shrink repeatedly and continue to do so for several months without any improvement. At the same time, the dual-brand operation of NEST and FORT caused us considerable user education costs. In the face of the deteriorating macro environment, we began to self-examine the two projects, and after a higher dimensional abstraction and deeper research at the theoretical level, we were surprised to find that the two projects should belong to a new fundamental paradigm, and they should be merged to become a new infrastructure on the chain. After a month-long discussion and analysis, we finally proposed to DAO to merge NEST and FORT.
NEST and FORT merged — Seeking bigger goals
In July 2022, NESTDAO passed the proposal of merge, and at the end of July, we completed the merger of NEST and FORT. At the protocol level, the code of both projects was integrated and refactored, and on the operational side, we integrated the resources of both projects, merging the Twitter and Telegram communities into one. At the theoretical level, Bitcoin built a new cryptocurrency network paradigm, Ethereum built a new asset network paradigm, and the omnipotent liquidity model we built is actually a new transaction network paradigm, which will be the most important paradigm revolution after Ethereum, and we released our new white paper, defining NEST as a web3 infrastructure for all projects, all buyers, and providing financial assets with any risk-return structures.
NEST building — Over a million community members
We participated in Singapore Token2049 and Binance Paris Blockchain Week in September, and Istanbul Blockchain Week in November, and also attended dozens of small conferences during this period. Our team has conducted in-depth communication with more than 200 project teams and investors, repeatedly using the market to test our theories and products, and also having a sharper understanding of the current market trends, through these communications, NEST has gained lots of attention in the industry, and there are many investment institutions to throw the olive branch (we do not have the need for financing).
In terms of community building, our user base is in the United States and South Asia, our local community manager will be the first to answer the various questions about NEST theory, and NEST products from the community users. In order to let NEST community users know more about crypto and to make the community more active, we have started a weekly Twitter Space — NEST Roundtable, where we invite famous crypto project team members, investors, and KOLs to discuss the market trend, the industry insights and some topics voted from NEST community. We have conducted 22 NEST roundtables in 2022, with an average audience of over 5K per session. We always believe that the more people understand crypto industry, the more prosperous the industry will be, and the more prosperous the industry will be, the faster NEST will move forward, which is also our initial intention to continue to educate users about crypto. One campaign after another has also received positive feedback, our Twitter and Telegram communities have surpassed one million users in 2022, and we have established strategic partnerships with over 80 project parties and institutions.
CyberInk — Exploring the new trading paradigm of NFT
In order to further explore the NEST ecosystem, in November 2022, we launched NEST’s own NFT — CyberInk NFT, a PFP-like NFT created with AI, Humans, and Space as the main elements, fused with ink features.
NFT was our team’s first test run, and we partnered with Element and PearDAO for INO, to what we didn’t expect was that the first release of 480 CyberInk Human series NFTs were swept away within ten minutes and the floor price in the secondary market exceeded the release price by 300%. This gave our team great encouragement, and we further explored the new trading paradigm of NFT by launching the NFT mining as well as auction function, where users can use 99 NESTs to mine CyberInk NFT of various rarities, and after mined the NFTs, they can also be auctioned on NESTFi, and the auction bidder will get 40% of the price difference of the next bidder as a reward, and 10% of the price difference will be burned. This mechanism, which we call “Deflationary Auction”, continues to motivate our community users to participate in CyberInk NFT. CyberInk NFT’s development further promotes the diversity of NEST’s ecosystem, and a more prosperous NFT and Gamefi ecology will help NEST deflate more significantly and give NEST a relative competitive advantage in the deflationary era of Ethereum.
2023, NEST will grow rapidly
In the blink of an eye, in 2023, the macro uncertainty will become less and less, and the certainty of NEST will become stronger and stronger. We are about to optimize our white paper again from a theoretical height (there are already 5 relevant research papers), and NEST will launch the “Martingale Network”, a new generation of infrastructure paradigm after Ethereum, where we will use smart contracts as the only seller in on-chain financial transactions, satisfying the needs of the buyer while pooling and hedging the buyer risk exposures. Risks that cannot be hedged are shared by all traders, thus fundamentally solving the problem of illiquidity of risk-hedging assets. The “Martingale Network” based perpetual futures trading platform, NESTFi, is currently ranked 5th among decentralized derivatives according to Defilama.
We are confident that by 2023, the negative beta of the crypto industry will turn into a positive beta, and NEST will be in full swing, moving forward with the trend, and we are confident that we will be in the top 10 of the entire crypto industry by 2024, and the martingale network will lead the next round of the crypto bull market.
