NEST predictor: worth output in the overall game

| | , ,

Most DeFi contracts require price data, especially contract resources such as stablecoins and futures, which require price liquidation. Therefore, price is the core risk of DeFi. At the moment, the purchase price oracle machine commonly used in DeFi usually adopts the price tag on a centralized swap by way of a “trusted” node and uploads it towards the chain in the form of data for DeFi to contact. There’s a fundamental problem with this scheme, that’s, the price is not effectively verified.
So, will there be a predictor that directly verifies the purchase price that can ensure that the purchase price is accurate, timely, and the expense of attack is extremely high? At exactly the same time, the solution is usually distributed, so there is absolutely no risk of centralization? The solution you want may be entirely on NEST.
On the evening of August 19th, the sixth issue of “Jade Words” invited among the founders from the NestFans forum, among the professional miners of NEST oracle, and Zilong, a NestFans forum, to totally analyze the principles and characteristics from the NEST oracle. And the value and investment opportunities from the nToken token program.
The following is a review of the entire live broadcast:
The development status of DeFi oracle and NEST introduction Yuzhu: Today we invited the founder of NestFans forum, founder of NestPool mining pool, ten two professional miners of NEST oracle machine, and NEST enthusiasts and miner Zilong. Welcome two, so First, please Shi Er and Zilong to introduce themselves.
Ten two: Hi there everyone, I’m NestFans forum_Shi two, now I actually mainly do NestFans forum and NestPool mining pool (NEST mining); nowadays I am very happy to talk about and swap NEST Oracle with my friends from Yuzhu, as well as the previous miner Zilong.
Zilong: Hello, everyone. I’m NestFans_Zilong. I’m an early NEST aficionado and miner. I’m very happy to come to “Jade Terms” today to talk about and swap NEST prophecies with everyone.
Yuzhu: So first of all, please offer you a short introduction. What are the problems and disadvantages from the DeFi oracle at this stage? What are the effects over the DeFi ecosystem?
Pick two: The most common oracles in the market are mostly “indirect” oracles. Their price feed nodes are only porters of price data, transferring off-chain price data towards the on-chain contract.
There’s a fundamental problem with the indirect oracle, that’s, the verification of the data isn’t direct, but indirectly ensures the authenticity of the data by verifying the uploader.
Another problem is certainly: the credit score risk of the node uploading the data determines the expense of the strike over the oracle data. If 1 trillion bucks of assets are derived based on the price provided by the oracle, the credit score from the oracle node should also match it. This is certainly impossible in reality. No matter what node randomness is used, it can’t be guaranteed. This is an essential problem, not a specialized problem, so indirect oracles can only be utilized in small-scale, nonfinancial scenarios.
Brief overview: the indirect oracle cannot effectively verify the purchase price data.
As the oracle provides global variables for downstream DEFI, which is the basis of all DeFi, when the oracle encounters an attack or stalls, the downstream DeFi will collapse. The arbitrage strike that happened on bZx before few months was to take advantage of the low priced of Uniswap oracle price manipulation. Therefore, the future growth direction from the oracle would be to improve the two components of “strike resistance” and “price precision”. This is also the bottleneck of the existing growth of the oracle.
Yuzhu: So in response to these shortcomings, what are the innovations and improvements from the NEST oracle? Introduce the operating theory of NEST and what functions it has.
Ten two: You might have only heard about NEST, but you still have no idea what NEST does and exactly how it can it. Next, I’ll introduce to you the NEST oracle plan, hoping that team friends might have a basic understanding and cognition from the NEST oracle.
Below, I’ll concentrate on the core operating principles from the NEST oracle solution:
Take the price tag on the ETH/USDT oracle machines as an example. When coming up with a quotation, the miners from the NEST oracle machine need to transfer the bilateral resources corresponding towards the quotation transaction pair in to the on-chain quotation agreement at exactly the same time. The minimal quotation unit is usually 10 ETH; presuming the existing ETH/USDT The market price of the investing pair is usually 1 ETH = 200 U, then your quotation miner needs to transfer 10 ETH and 2000 U of quotation resources towards the quotation agreement.
Following the transfer is successful, the quotation contract will take effect on the chain for 25 Ethereum blocks (approximately 5 minutes); during this time period of time, the validator can industry according to the miner’s quotation data; for instance, any verification Both can transfer 2000 U in to the quotation agreement to exchange 10 ETH, or transfer 10 ETH in to the quotation agreement to exchange 2000 USDT.
This means that when the miner’s quotation deviates greatly from the true selling price, then an arbitrage opportunity is provided towards the verifier, and anyone can become a verifier; through this arbitrage charges system, the quotation miner is forced to proceed according to the fair selling price. Quotation, and send real and effective price information towards the NEST system.
In the long run, after being verified with the verifier, the uncompleted quotation will participate in the purchase price generation from the NEST oracle; and the quotation that has been completely traded will undoubtedly be discarded by the system.
The innovation from the NEST oracle program is that all effective price data is a price that has been agreed by market verifiers, which is in line with the blockchain consensus mechanism; while additional oracle applications cannot efficiently verify the purchase price data and will only be trusted Those price feed nodes. This is actually the essential distinction between NEST oracles and other oracles.
The innovative solution of NEST oracle machine Yuzhu: What’s the quotation mining mechanism of NEST oracle machine, and what preparations ought to be designed for script mining? Just how do miners make quotations?
Zilong: (1) NEST oracle is a decentralized oracle system based on the Ethereum network. This is a distributed quotation program that realizes the synchronization of price facts over the string inside a decentralized manner. NEST oracle machine defines and implements a new mechanism for generating string facts over the blockchain network. It adopts the marketplace game theory to synchronously create the price specifics from the off-chain market over the string through miners’ quotation, and combines the NEST quotation mining system to incentivize miners, making it a reasonable closed-loop distributed quotation system. Completely synchronize the off-chain price specifics and generate them over the string to form NEST-Price.
(2) First, you need to build an Ethereum node, and you may also use a third party (Infura can be an open up Ethereum node, which gives a typical RPC API for developers to contact), however the third party offers some limitations, the main performance is certainly In terms of uncontrollable balance and data hold off, such as data delay, because the server is certainly overseas, the data obtained might sometimes be delayed around 10 seconds. Personally, i suggest that if you want to become a professional NEST miner, it is possible to build an Ethereum full node on your own, to enable you to define the interface yourself, which is relatively more flexible, of course, you will see costs such as server expenses.
Second, you will need to discover a suitable price interface (the open up source script over the community forum uses the Huobi API). When the third-party price interface is incorrect, it will cause a quotation mistake, causing the lack of assets once the order is used; or the interface is irregular and the purchase price cannot be attained. To trigger the miner to accident. It is recommended that you try to call an alternate interface to avoid like situations once the price is abnormal.
In addition, in terms of code selection, Personally, i feel that python and java may be used, and I can elect to modify and optimize over the community’s open up source quotation script (java). Before that, you will need to carefully study and familiarize yourself with the entire quotation process and NEST result mechanism; just The best way to begin is to switch to the testnet for debugging in the neighborhood environment, and deploy towards the server to start out the program after everything is OK.

In the next document, the ropsten address may be the test network address.
Finally, I’ll mention a few points that require to be taken notice of. When the block difference is relatively small, try to avoid block collisions and rear-end collisions to reduce mining costs; once the price deviation is too large, if you find that your price may be irregular, you need to produce a good technique , These logics need to be implemented in program code.
(3) When coming up with a quotation, the miner needs to transfer the specific amount of resources corresponding towards the quotation transaction pair, and the minimal unit is certainly 10 ETH. Assuming that the current selling price from the USDT / ETH investing pair is usually 420 USDT = 1 ETH, then your quotation miner needs to transfer 4200 USDT and 10 ETH quotation resources towards the quotation agreement. After the transfer is successful, the quotation agreement will be displayed within the quotation market for 25 blocks (about 5 minutes); during this time period, anyone can swap according to the miner’s quotation data; for example, I can Exchange 4200 USDT in to the quotation agreement to exchange 10 ETH, and I’m also able to transfer 10 ETH in to the quotation agreement to exchange 4200 USDT. This means that when the miner’s quotation deviates greatly from the true market price, after that it provides an arbitrage chance of others, and anyone can participate in arbitrage; through this arbitrage charges system, the quoting miner will estimate at the reasonable market price. , And then send real efficient price information towards the quotation system.
At the moment, quotation mining NEST can be mined through scripts or manual quotations making use of NEST DAPP; both have to observe some quotations over the chain, realizing that they have made reasonable strategies, in order to have higher mining efficiency.
NEST3.0 overview:

NEST oracle estimate script:

NEST oracle verification script:

NEST quote agreement address:
nToken quotation contract address:

nToken hand mining visual tutorial link:

Yuzhu: What improvements has NEST manufactured in data verification? So how exactly does the verifier verify NEST’s quotation?
Ten two: When coming up with a quotation, the miner from the NEST oracle machine needs to transfer the bilateral assets related towards the quotation transaction pair in to the on-chain quotation contract at exactly the same time. The minimal quotation unit is usually 10 ETH; assuming that the current selling price from the ETH/USDT transaction pair is usually 1 ETH = 200 U, then your quotation miner needs to transfer 10 ETH and 2000 U of quotation resources towards the quotation contract.
Following the transfer is successful, the quotation contract will take effect on the chain for 25 Ethereum blocks (approximately 5 minutes); during this time period of time, the validator can industry according to the miner’s quotation data; for instance, any verification Both can transfer 2000 U in to the quotation agreement to exchange 10 ETH, or transfer 10 ETH in to the quotation agreement to exchange 2000 USDT.
This means that when the miner’s quotation deviates greatly from the true selling price, then an arbitrage opportunity is provided towards the verifier, and anyone can become a verifier; through this arbitrage charges system, the quotation miner is forced to proceed according to the fair selling price. Quotation, and send real and effective price information towards the NEST system.
Yuzhu: When verifying the purchase price, what procedures did the NEST oracle take to prevent possible attacks? Will there be any specific algorithm?
Ten two: Yes. You can find two details:
1) The validator needs to leave a new quotation while getting the order, and the size of the quotation is twice the size of the order ETH;
2) The NEST program has a price deviation defense system: when the quotation deviates more than 10% from your last effective quotation, the size of the quotation is 10 ETH * 10 (the scale is increased by 10 moments)
Mainly through both of these points, to prevent possible oracle attacks.
Yuzhu: What bonuses possess the NEST oracle adopted to mobilize the excitement from the miners?
Zilong: Miners can be both quotation miners and verification miners. They are able to conduct verification arbitrage if they find arbitrage opportunities, which also maintains the balance of the system;
Along with arbitrage opportunities, on the reward level:

  1. The purchase price oracle machine calls ETH revenue submission: miners account for 20%;
  2. This part of the incentive will be terminated when the complete level of NEST Token result reaches 2 billion, and the percentage of miners is 85%. The initial point is that the downstream platform invokes the submission incentive, and the next point is that this is the adjusting incentive at the NEST result distribution.
    These aspects can greatly mobilize the productivity of miners.
    nToken system and nToken token Yuzhu: I heard that NEST 3.0, that was updated in July, added the nToken program. Is it possible to introduce the original design and characteristics of nToken, and how does this system work?
    Zilong: nToken may be the equity pass from the ERC20 Token/ETH price prediction machine within the NEST system, and it is also an ERC20 Token issued based on the Ethereum network. Every time an ERC20 Token/ETH price oracle machine is usually opened, a kind of nToken will undoubtedly be created. It might be nDAI or nHBTC.
    A single price set cannot meet the requirements of the prevailing DeFi market. Exactly the same nToken program also has a group of miners and validators participating in quotation and arbitrage to keep up the balance of the system.
    Yuzhu: What’s the value of nToken and what are its uses? How exactly to capture the value of nToken tokens?
    Zilong: Using the nToken system, every asset in Ethereum might have its price oracle track and its particular downstream ecology and source of value.
    Exactly the same nToken token gets the directly to profit from the oracle system, and keeping it could earn weekly income (ETH); high-quality nToken may be over the investing market in the foreseeable future.
    Yuzhu: What are the ntoken value getting excited about? Do ordinary individuals still have investment opportunities?
    Zilong: Recently, Huobi released the Worldwide DeFi Alliance, that was jointly founded with Maker, Chemical substance, NEST communities, and dYdX to jointly promote the development of DeFi. Hobbit HBTC.com has been formally established [Hobbit DeFi Labs] will invest tens of millions of dollars in DeFi particular funds. It can be observed that increasingly more systems and institutions are beginning to concentrate on DeFi project research, investment and incubation, and ecological structure.
    Personally, I’m currently more optimistic about several nTokens: nHBTC, nWBTC
    Most DeFi apps are active in the Ethereum open public chain. Within the crypto globe, Bitcoin assets are the total ruler. The anchor coins of Bitcoin such as HBTC and WBTC function as a bridge which allows customers to easily and seamlessly Make use of Bitcoin to participate in the procedure from the DeFi market on Ethereum.
    The surge in the amount of active addresses, big transaction volume and average balance of WBTC demonstrates increasingly more fresh institutions and big participants are also participating in the DeFi market through WBTC.
    Because the activation from the HBTC oracle machine, the block density has already reached 10 block intervals. Based on the data over the string, the NEST miners are the most energetic member on HBTC.
    The DeFi from the Bitcoin track is lacking a price oracle machine like NEST to solve the problem of lack of price information on the chain.
    Therefore, Personally, i am quite optimistic concerning the application of Bitcoin resources in DEFI, and I have been participating in the quotations of nToken such as HBTC and WBTC.
    The nToken quotation was opened following the upgrade to 3.0 in mid-July. At the moment, the competition isn’t very big and it is a good time to intervene within the quotation. With resources ready, it is possible to directly participate in quotation and mining nToken in NEST DAPP. I look forward to and welcome increasingly more miners to participate in the NEST ecosystem.
    The future of NEST oracle machine appears forward to Yuzhu: Are there any risks in NEST-Price? How should we encounter these dangers, or what are the solutions?
    Ten two: I’ll directly quote the NEST-Price risk description within the NEST whitened paper:
    The citation risk of NEST-Price is the same as all financial products or financial services. NEST-Price can’t be without danger. Here is a short description from the citation risk of NEST-Price. Needless to say, there could be other things that have not been explained or recognized. danger:
    1) Due to the lifetime of minimum amount arbitrage space, for financial solutions that require extremely high pass on accuracy, some dangers may arise when working with NEST-Price, and specific compensation needs to be made in the design.
    2) The level of the marketplace arbitrage mechanism isn’t enough, that’s, there are insufficient arbitrageurs. You can find obviously huge opportunities, but nobody cares about any of it. This requires market acceptance and recognition, and is a problem of deepening industry growth.
    3) Even though price can’t be attacked, the purchase price system can be indirectly attacked by attacking the NEST, such as occupying more than 51% from the NEST, and modifying important guidelines to help make the quotation system invalid. This problem can be avoided by restricting key guidelines, while raising the scale from the NEST market, making 51% attacks difficult to achieve.
    4) The risk of program code vulnerabilities or major external changes. If there are vulnerabilities within the underlying Ethereum program code, NEST system program code, or major changes in the external environment, it will affect price callers. This can be attained through on-chain governance and agreement bifurcation. Fix.
    The initial point, any oracle will have this problem, which is also among the key indicators from the performance from the oracle;
    The next and third points are NEST market problems. When the NEST consensus is strong enough and the participants are rich enough, these problems will naturally become solved;
    The fourth point is a code quality issue, that allows more people’s white hats and security audit agencies to participate and repeatedly tap the NEST protocol layer code. At the moment, the safety audit from the NEST process layer code is usually provided by Appi Lab.
    Yuzhu: What are the next plans at the NEST oracle and the NestPool mining pool?
    Ten two: On the NestFans forum, I’ll work with Zilong and other previous miners to continue to accomplish a good job in popularizing and promoting the NEST oracle program, so that more people can understand the NEST oracle.
    As for the NestPool mining pool, in addition to continuing to participate in ETH/USDT and BTC/ETH quotations, it will expand more high-quality Token/ETH quotations for downstream DEFI make use of.
    Thank you.
Previous

A letter, two ideals, comment on the continuing future of Ontology and TRON

Property generalization may be the brand-new direction of blockchain development?

Next

Leave a Comment