Unveiling the mysteries of NexisDao
Translated from：
Yesterday, we talked about making NervosDAO’s assets liquidatable in Nervos’s Forum. The First topic introduced that after CKB is deposited in NervosDAO, the same number of dCKB can be minted at the same time, to some extent solves the problem of the stocked liquidity of CKB after depositing in NervosDAO. This is actually just one feature of NexisDAO.
Now let’s unveil the other half of NexisDAO.
What is the Nexis DAO?
NexisDAO is an open-source decentralized autonomous organization running on the Nervos Network (Nervos for short). The project runs a stablecoin system called the Nexis Protocol, Users can mint stablecoin TAI with assets as collateral through Nexis Governance.
Neixs governance is a set of processes organized and operated by the community to manage all aspects of the Nexis protocol. TAI is a guaranteed cryptocurrency that maintains a 1:1 pegged (soft anchor) to the USD dollar by offering over-collateral asset backed up the issuance on chain, and its issuance is completely decentralized.
On the NexisDao platform, users can over-collateralized their crypto assets to mint TAI. No threshold, fully decentralized, later backed-up collateral will be determined by NeixsDAO, fully autonomous, on the early stage, it only allows CKB as the collateral. Since TAI is obtained through the over-collateralled mode and through the automatic feedback mechanism to balance supply and demand and flexibly adjust the interest rate, the anchor relationship between TAI and USD 1:1 can be maintained quickly when the price fluctuates.
Anyone can use a TAI to convert it into a safe-haven asset or to borrow against it for liquidity to increase earnings. A TAI can also be used like any other digital currency asset: for free transfer or transaction, as a means of payment for goods and services, or for long-term storage.
The main functions of the Nexis DAO
Deposit
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Require specified collateral ( crypto assets)
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staking collateral to smart contract and mint TAI
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This operation involves multiple smart contracts, and you can directly use the deposit function on the official website
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If you want to assemble your own transaction, check out the transaction details in the development documentation
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This operation will not unlock your collateral until you repay the TAI and pay interest.
Repay and get your collateral back
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You need to repay enough TAI and corresponding interest (paid in TAI)
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When repaid successfully , the locked collateral would be automatically returned.
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This operation involves multiple smart contracts and can directly use the repay function on the website
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If you would like to assemble your own transaction, check out the transaction details in the following sections
Liquidation
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To ensure the value of the TAI, liquidation will be triggered when the price of the collateral (collateral) falls and its value cannot support the value of the TAI
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The default liquidation threshold is 1.5 times the value of the TAI, and collateral ratio will be different due to the volatility of their prices
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Assume the number of minted TAI is 10,000
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Liquidation will be triggered when the value of the collateral falls below 15,000 TAI
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Anyone can execute the clearing process
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5% of the liquidated assets will be rewarded to liquidators, and the other 95% will be auctioned off.
Collateral auction
- The liquidated collateral will be put up for auction
- The Dutch auction was adopted
- Take 2 times of minted TAI as the initial price (for example, minting 10,000 TAI, and then the starting price of the collateral auction is 20,000 TAI)
- The auction price decreases linearly to 0 TAI after 24 hours
- The first person to bid will receive the collateral (requiring the auction transaction to be successfully packaged into the blockchain).
- To avoid the evil of the prophecy machine, all auctions have a public time (approximately 24 hours)
Price Feed
- Select a group from the price feeding nodes by voting (at the early stage of the project, feeding nodes are provided by the official)
- The feeding node regularly gets the latest price from the exchange
- Calculate out the average price over a period of time and submit it on chain
Major external actors
Users, arbitrageurs, Keeper (liquidator), Oracle (Oracle), and community members
The user
- Generate TAI from the collateral asset
- Holding the TAI or participating in other onchain protocol with TAI
Arbitrageurs
Arbitrageurs are market participants who help TAI maintain its target price ($1) by selling when the market price of TAI exceeds the aimed price and buying back as long as the market price falls below the target price
Keeper
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 input of information on asset prices, also known as “feeding”. It is a set of robots selected by governance that periodically report asset prices.
The community members
Co-governance of NexisDao and the projects
As the Nervos ecosystem expands and become stronger, we believe that more and more participants will realize the underlying value of stablecoins. On this basis, users can easily access any crypto asset through NexisDAO, while minimizing the volatility associated with the crypto market. It also solves the problem of the low liquidity of CKB in NervosDAO. So we believe NexisDAO will become a key infrastructure in the Nervos ecosystem, especially for maintaining stable portfolio value.
Finally, our product development is close to the final phase,and we will open the external beta version for limited external testers. Welcome interested partners to participate and build together.