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What problem does the NEST Protocol solve?


In the traditional paradigm, decentralized project parties need to construct a complex economic system based on multiple players to build a game or build a service. This game or service is settled over multiple stages with counterparties or users of the service paying for the excess revenue generated by the asset. This model is naturally difficult for many developers, especially for DeFi projects: it is difficult to build efficient market, create stochastic assets, and operate a token system. And NEST Protocol creates a new set of paradigms to solve these problems.

Building efficient market

Existing issue:

This model makes the party settlement limited by the capacity of the overall economic system and the balance of transaction volume of each player, making it difficult to settle and clear the market efficiently. In addition, it is impossible to achieve settlement atomicity in this economic relationship. For example, if you purchase an option on an options selling platform that generates 20K ETH in revenue, the settlement of this revenue will inevitably come from the transfer of others, and if your counterparty has less than 20K ETH in transactions, the revenue cannot be cashed (effective settlement), or the option cannot be sold in the first place because there is no counterparty (market clearing).


NEST Protocol has built an entire new economic system to solve the above problem. Using the OMM mechanism, everyone trades against the NEST contract, without the need to match counterparties. Besides, the issuance of NEST is issued and burned by the instructions of the smart contract. This instruction is only by the first constraint, the second constraint to ensure that the number of tokens is deflated in the long term, and can still be issued in increments to meet the requirements of settlement at the time of settlement. Thus, NEST can solve the problem of effective settlement and market clearing that cannot be solved under the traditional economic system, and theoretically can provide unlimited liquidity for settlement.

Create stochastic assets

Existing issue:

In the traditional model, asset classes built on tokens are incomplete and cannot generate stochastic assets. Stochastic Asset is an on-chain asset that can be issued and destroyed in response to random information flows, such as an on-chain asset with a 20% probability of getting 10 ETH in a given block. Almost any on-chain application can be considered as stochastic assets, and it can be widely used in on-chain applications such as DeFi, GameFi, NFT, etc. Stochastic assets are difficult to be realized by building an economic system. In addition to facing the problems described in 1, the introduction and cost of random information flow can become extremely problematic.


NEST builds PVM that can generate and program true on-chain stochastic assets. Probabilistic Virtual Machine (PVM) is a virtual machine-like structure based on the basic function library. The PVM can be invoked by project owners to create stochastic assets with any risk-return structure that the user needs, and to achieve market clearing and efficient settlement with OMM. PVM will greatly reduce the workload of contract development and can theoretically serve all on-chain applications.

Reduce Token Operating Costs

Existing issue:

Under the traditional model, project parties issue their own tokens as settlement tokens, which face the problems of poor credibility, lack of liquidity, and restricted usage scenarios. The project owner needs to spend a lot of energy on token operation rather than project development and construction.


NEST Protocol will be unified with NEST tokens for settlement. NEST has a wide range of applications in scenarios such as the circulation of NEST ecology. Besides, NEST has been listed on 15 exchanges, such as Coinbase, Huocoin, Matcha, Uniswap,, etc. There are more than 1.2M community users with a wide awareness and user base. Using NEST tokens can solve the problem of poor credibility and lack of liquidity of project’s own tokens, and reduce the project’s token operation cost.


Based on the above, we believe NEST will become the most important infrastructure after BTC and ETH.