The Development Path and Challenges of the NEST System

NEST is working hard to promote popularization, allowing more people to participate in mining while enhancing product usability to expand the user base. Financialization is another important direction for NEST, similar to Ethereum's model of establishing financial demand within the system. From the initial GAS payment function, to later serving as an ICO financing tool, and now to DeFi liquidity mining, Ethereum has gradually established strong financial attributes.

NEST is currently exploring the use of linear operators to produce more assets and establish an application closed loop with these assets and NEST. This parallel asset is similar to stablecoins, but not exactly the same. If it only remains on the functional level, its vitality and value will be significantly discounted. The financialization process may bring exponential effects: users can mortgage NEST to generate PUSD, then purchase NEST to continue mortgaging, thereby continuously increasing leverage. This process will also increase the calls to oracles, further enhancing the buyback demand for NEST.

CoFiX2.0 will achieve automated hedging and asset allocation. Users can place assets on-chain and automatically adjust to the edge of the security market line through a gamified approach, setting acceptable risk-return levels. This process is similar to the AMM mechanism, allowing for automatic generation or offsetting of leverage, further reinforcing buyback demand.

Based on price information flow, various trading models can be designed. The difficulty of options trading lies in finding counterparties. If we consider the NEST system as Wall Street, then the DAO is akin to Goldman Sachs, serving as an absolute seller of options and earning time value. The DAO can acquire NEST from the market, pushing the system into a deflationary phase. Once this model is established, the process of financialization will continue to deepen.

The NEST 4.0 version plans to randomize mining and financialize the system layer to address the issue of verification incentives. The development path of blockchain is shifting from "consensus-coin price-ecosystem" to "demand-ecosystem-consensus". Many DeFi projects, in addition to providing liquidity, are actually in a state of debt.

A non-cooperative game system may degenerate into a gambling project if it cannot create socially recognized new attributes and functions at equilibrium. Only innovations with real social value can be widely disseminated. Starting from demand is to avoid negative cycles and lock in the most basic equilibrium.

NEST is starting from internal system requirements and gradually expanding outward. For example, providing parallel assets for miners to meet quoting demands and achieving dynamic asset management. This strategy of "demand not overflowing" helps establish recognition within the DeFi community. By meeting underlying demands and increasing system complexity, the demand for the entire ecosystem can be created, ultimately establishing a broader consensus.

The essence of demand is to continuously inject value into the game system. When the system reaches equilibrium, it can exhibit new properties and characteristics, which is precisely the key to the success of projects like Bitcoin.