Uncover the mystery of NexisDAO

Yesterday’s article talked about the topic of the assets of Nervos DAO liquid. 1612726e088a22, which introduced that after depositing CKB in Nervos DAO, the same amount of dCKB can be mined at the same time, which to a certain extent solves the poor liquidity of CKB mortgage after Nervos DAO The problem.

Actually, this is just a function of NexisDAO. Now let's uncover the other half of NexisDAO.
 
 

What exactly is NexisDAO

 
open source decentralized autonomous organization running on the Nervos Network (Nervos for short). The project runs a stable currency system called Nexis protocol . Users can use "Nexis Governance" to approve assets as collateral to generate stable currency TAI.

Neixs governance is a set of procedures for managing all aspects of the Nexis agreement organized and operated by the community. by providing full asset collateral on the chain and maintaining a 1:1 anchor (soft anchor) with the US dollar. Its issuance is completely decentralized.

On the NexisDAO platform, users can over-collateralize virtual assets and mint TAI. There is no threshold and it is completely decentralized. The collateral to be supported in the later period will be determined in the form of DAO, fully autonomous, and only CKB mortgage is supported in the initial stage. Since TAI is obtained through the over-collateralization model, through the automatic feedback mechanism to balance supply and demand, and through the flexibly adjustable interest rate, when the price fluctuates, the 1:1 anchor relationship between TAI and the U.S. dollar can be quickly maintained.

Anyone can exchange TAI for safe-haven assets, or mortgage TAI to obtain liquidity to increase income. TAI can also be used as any other digital currency asset: free transfer or transaction, and as a means of payment or long-term storage of goods and services.
 
 

Main functions of Nexis DAO

Pledge

1. Requires the possession of designated collateral (virtual assets)
2. Stake the collateral to the smart contract and cast TAI
   a. This operation involves multiple smart contracts, which can directly use the pledge function of the official website
   b. If you want to assemble the transaction yourself, please check the transaction details in the development document
3. This operation will lock your collateral until you repay TAI and pay interest

Take back the collateral

1. You need to pay enough TAI and the corresponding interest (paid in TAI)
2. When paying, automatically return the locked collateral
   a. This operation involves multiple smart contracts, you can directly use the repayment function of the official website
   b. If you want to assemble the transaction yourself, please check the transaction details in the subsequent chapters

Liquidation

1. In order to ensure the value of TAI, when the price of collateral (collateral) falls and its value cannot support the value of TAI, liquidation will be triggered
2. The default liquidation threshold is 1.5 times the TAI value, and different collaterals will vary due to their price volatility
   a. If the TAI minted by the mortgage is 10,000
   b. When the value of the collateral is less than 15,000 TAI, liquidation will be triggered
3. Anyone can perform the liquidation process
4. 5% of the liquidated assets will be rewarded by the liquidator, and the other 95% will be auctioned

auction

1. The liquidated collateral will be put out for auction
2. Adopting the Dutch auction method
3. Take 2 times the minted TAI as the starting price (for example, if 10,000 TAI is cast, the starting price is 20,000 TAI)
4. The auction price decreases linearly and drops to 0 TAI after 24 hours
5. The first person to bid will receive collateral (requires auction transactions to be successfully packaged into the blockchain)
6. In order to avoid evil by the oracle, all auctions have a public announcement time (about 24 hours)

Feed price

1. Through voting, select a group of price-feeding nodes (in the early stage of the project, the price-feeding nodes are provided by the official)
2. The price feed node regularly obtains the latest price from the exchange
3. Calculate the average price over a period of time and submit it to the chain

 
 

Main external players

 

Users, arbitrageurs, caretakers (Keeper, liquidator), oracles (Oracle) and community members.

user

• Pledge assets, cast TAI
• Hold TAI or use TAI to participate in other agreements

Arbitrageur

Arbitrageurs are market participants who help TAI maintain the target price ($1). They will sell TAI when the market price of TAI exceeds the target price, and buy when the market price is lower than the target price.

Keeper (Keeper, liquidator)

Monitor asset prices, trigger asset liquidation, participate in asset auctions, and ensure that the value of collateral is higher than the value of TAI.

Oracle

The information input used for asset prices, also known as "price feed", is a group of robots selected through governance to report asset prices on a regular basis.

Community member

Co-governance of the project

 

With the gradual expansion of the Nervos ecosystem, it is believed that more and more participants can feel the basic value of stablecoins. On this basis, users can easily access any encrypted assets through NexisDAO, while minimizing the volatility associated with the encrypted market, and also solving the problem of low liquidity of CKB in Nervos DAO. Therefore, we believe that NexisDAO will become a very critical infrastructure in the Nervos ecosystem, especially in terms of maintaining a stable portfolio value.

Finally, our product research and development has entered the final stage, will soon start the external internal , and interested friends are welcome to participate.

Regarding NexisDAO, welcome to Nervos Talk and join the following link to participate in the discussion:

• https://talk.nervos.org/t/nexisdao/6085