A Nexus Protocol MEGA Thread
Terra’s first yield optimizer and liquidation protector vaults.
Changing DeFi as we know it.
Let's explore how... $PSI
/THREAD🧵
Terra’s first yield optimizer and liquidation protector vaults.
Changing DeFi as we know it.
Let's explore how... $PSI
/THREAD🧵
1. @NexusProtocol ? Tell me more.
A new protocol, launched with Col-5.
Focuses on:
-Yield optimisation
-Risk management
-Working in front of anchor
Optimisation such as front running $anc protocol operations and allowing the implementation of different strategies based on risk
A new protocol, launched with Col-5.
Focuses on:
-Yield optimisation
-Risk management
-Working in front of anchor
Optimisation such as front running $anc protocol operations and allowing the implementation of different strategies based on risk
2. Use Cases
Two vaults (bAsset and #UST )
You can deposit $eth, instead of $lido.
#ETH holders can access services of #anchor on #Terra by depositing it directly.
#NEXUS provides an insurance. How does insurance work today?
Mainly via personable identifiable information.
Two vaults (bAsset and #UST )
You can deposit $eth, instead of $lido.
#ETH holders can access services of #anchor on #Terra by depositing it directly.
#NEXUS provides an insurance. How does insurance work today?
Mainly via personable identifiable information.
3. Insurance in TradFi
With TradFi insurance:
A premium can be established and built.
An appropriate premium can be paid, when the company invests your dollars today.
Finance tells us a dollar today is more important than a dollar tomorrow.
So who are the losers?
Us.
With TradFi insurance:
A premium can be established and built.
An appropriate premium can be paid, when the company invests your dollars today.
Finance tells us a dollar today is more important than a dollar tomorrow.
So who are the losers?
Us.
4. Losers in TradFi
Traditional Insurance- insurance isn't aligned with you.
They want to keep our money as long as possible.
They will avoid paying you out as quickly as possible too.
How does it need to work differently?
More on this...
Traditional Insurance- insurance isn't aligned with you.
They want to keep our money as long as possible.
They will avoid paying you out as quickly as possible too.
How does it need to work differently?
5. Defining a Counterparty
Nexus- aligns you as an insurance mechanism in a clear and concise sense- you can even vote.
Think-- paying insurance but also on the board of the insurance company.
More utility for you.
Logic is built into the insurance product thus by design.
Nexus- aligns you as an insurance mechanism in a clear and concise sense- you can even vote.
Think-- paying insurance but also on the board of the insurance company.
More utility for you.
Logic is built into the insurance product thus by design.
6. Parametric event triggers
Nexus optimises LTV (loan to value ratio).
When LTV starts dropping, Nexus steps in to avoid liquidation.
Eg 60% towards liquidation, Nexus will step in.
This presents new concepts which can be implemented in what you are using.
Nexus optimises LTV (loan to value ratio).
When LTV starts dropping, Nexus steps in to avoid liquidation.
Eg 60% towards liquidation, Nexus will step in.
This presents new concepts which can be implemented in what you are using.
7. Ecosystems grow via investment
Capital Inflows.
Capital flows fluently only when it understands risk in the ecosystem.
These protocols allow you to quantify the risk your taking on in these ecosystems like Terra.
Often as investors we overlook the risk in projects.
Capital Inflows.
Capital flows fluently only when it understands risk in the ecosystem.
These protocols allow you to quantify the risk your taking on in these ecosystems like Terra.
Often as investors we overlook the risk in projects.
8. First product
Anchor vault with BLuna. Sits in front of Anchor borrow
You can front run Anchor api intervals in 15 rather than 30 seconds.
Risks in Anchor: Anchor price oracle pauses liquidation in smart contracts.
In turn, can trigger liquidation when contract is paused.
Anchor vault with BLuna. Sits in front of Anchor borrow
You can front run Anchor api intervals in 15 rather than 30 seconds.
Risks in Anchor: Anchor price oracle pauses liquidation in smart contracts.
In turn, can trigger liquidation when contract is paused.
9. Secure
Smart Contract based- emergency/safe/optimal mode.
Anchor - multi billion dollars under management
What will happen to Nexus as it takes in more inflows?
Smart Contract based- emergency/safe/optimal mode.
Anchor - multi billion dollars under management
What will happen to Nexus as it takes in more inflows?
10. Nexus right now.
Lets you earn superior APY/APR with Ethereum token,
Can earn passive income in higher than 20% without bonding #Ethereum .
If price oracle fails, uses back of #anchor price oracle in emergency mode.
A massive addition into terra ecosystem evidently.
Lets you earn superior APY/APR with Ethereum token,
Can earn passive income in higher than 20% without bonding #Ethereum .
If price oracle fails, uses back of #anchor price oracle in emergency mode.
A massive addition into terra ecosystem evidently.
11. Tokenomics
As a holder of in assets. Nexus vault yield rewards
Farming $PSI tokens give you governance- can stake and earn rewards.
But what about token distribution?
As a holder of in assets. Nexus vault yield rewards
Farming $PSI tokens give you governance- can stake and earn rewards.
But what about token distribution?
12. Distribution
10 billion $PSI tokens distribution- at least 4 years.
Can be extended if 10 billion is not met.
Majority went to core team to start. Then investment providers which has already been fulfilled.
LP miners as well are profiting heavily,
10 billion $PSI tokens distribution- at least 4 years.
Can be extended if 10 billion is not met.
Majority went to core team to start. Then investment providers which has already been fulfilled.
LP miners as well are profiting heavily,
13. Narratives
As more complex DeFi strategies develop.
Programmatic insurance is the next stage of DeFi.
It may be implemented on other platforms, not just #Terra .
I am looking forward to the introduction of the $UST vault linked below:
docs.nexusprotocol.app/launch/protoco…
As more complex DeFi strategies develop.
Programmatic insurance is the next stage of DeFi.
It may be implemented on other platforms, not just #Terra .
I am looking forward to the introduction of the $UST vault linked below:
docs.nexusprotocol.app/launch/protoco…
14. My Thesis
Over the next few months/years.
Insurance protocols in DeFi will play a part, as more individuals learn how to effectively hedge assets to lower risk.
@NexusProtocol is the first on @terra_money. Wheere #Terra is the first in so many unique ways.
Over the next few months/years.
Insurance protocols in DeFi will play a part, as more individuals learn how to effectively hedge assets to lower risk.
@NexusProtocol is the first on @terra_money. Wheere #Terra is the first in so many unique ways.
Thanks for reading! If you liked the thread, please help me to get it out to more #LUNAtics by RTing/Favoriting the first tweet linked below:
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I post every day about different projects, breaking down the tech and fundamentals for you to understand easily.
And for more tweet threads like this follow me: @Crypto8Fi
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