What is the Martingale Network?

What is a martingale trade?

I pay $X at this point in time and I expect to receive $X at some point. this process is martingale trading, indicating that it is a fair game, in that my expected return is 0.

For example, I pay 100 NEST to bet on the price of ETH, if the price goes up, I get the NEST corresponding to the upward part of the value, if it goes down, it is deducted from the 100 NEST. In the long run, your expectation is 0. However, don’t forget that martingale is a stochastic process, and in real-life trading, you can have your own analysis and information about the market and you will have the probability of making a big gain. This is what makes martingale trading interesting.

What is the Martingale Network?

In NEST, every transaction is a martingale transaction. All martingale transactions form a martingale network through NEST contracts.

So, what is special about NEST contracts? In a traditional market network, transactions are completed by matching buyers and sellers through an intermediary. This brings with it the problem of illiquidity. In the NEST system, all traders trade directly with an Infinite Liquidity Maker (ILM), which is the NEST contract itself. Bought digital assets go into the contract (destroyed) and settled digital assets are instantly incremented out through the contract. The decentralized network created by NEST does not require the introduction of any intermediaries but instead achieves this by providing all traders with an unlimited supply of sellers. The benefit of this is that the original cost of matching aggregation is completely eliminated for traders, providing unlimited liquidity while also enabling the risk-sharing feature of the blockchain: all holders of NEST share in the risk and reward of decreasing and increasing NEST supply.

By using the Martingale Network, exchanges will no longer need LPs and market makers.