Development Path and Strategy of the NEST Project

The NEST project is working hard to achieve popularization and improve product usability to attract more people to participate in mining and using the products. At the same time, the project is also promoting the process of financialization, which is similar to the development path of Ethereum. Financialization can bring exponential effects to the system, such as generating PUSD by collateralizing NEST, then buying NEST again and continuing to collateralize, thereby continuously increasing leverage. This process will also increase the demand for oracle calls, thereby enhancing the repurchase demand for NEST.

CoFiX 2.0 will achieve automated hedging and asset allocation. In the future, users may be able to place assets on the chain, automatically adjusting to the edge of the security market line through a game-theoretic approach, while setting acceptable risk-return. This game-theoretic asset management mechanism will drive the automatic generation and offsetting of leverage, further strengthening repurchase demand.

In STP (Straight Through Processing) mode, any desired trade can be designed as long as there is price information flow. For options trading, the main challenge lies in finding counterparties. In the future, the NEST system may establish an organization similar to a DAO to act as the absolute seller of options, earning time value and acquiring NEST from the market, pushing the system into a deflationary phase.

The NEST 4.0 version plans to randomize mining and achieve financialization at the system level to address the problem of verification incentives. The project team believes that the development path of blockchain projects should start from "demand-ecosystem-consensus" rather than the traditional "consensus-price-ecosystem" model. The latter is prone to create a collapse-type equilibrium, while the former is more conducive to creating social value and achieving sustainable development.

The NEST project is gradually expanding outward from internal demand. First, it meets the internal needs of the system, such as miners' demand for quoted assets, followed by dynamic asset management, and then the needs of the entire NEST ecosystem and related communities. This strategy of "demand not spilling over" helps to solidify the underlying demand, increase system complexity, and ultimately create demand for the entire ecosystem.

The project team believes that the essence of demand is to continuously deliver value to the game system. The core of value lies in the ability to generate new attributes and characteristics when the system reaches equilibrium. This approach helps the NEST project find its unique positioning and development path in the highly competitive blockchain field.