The Development Direction and Financialization Process of the NEST System

The primary task of the NEST system is to achieve popularization, attract more people to participate in mining, and at the same time improve the usability of the product. Financialization is an important direction for NEST's development, which means transforming NEST into an asset with financial attributes. Ethereum is a typical example; it not only has payment functions but has also developed into an important tool in the DeFi ecosystem, possessing strong financial attributes.

The NEST team is exploring how to produce more assets through linear operators and establish an application closed loop with NEST. This process is similar to stablecoins but also has its differences. Staying only at the functional level will limit its vitality, while financialization may bring exponential effects: users can mortgage NEST to generate PUSD, then buy NEST to continue mortgaging, thereby continuously increasing leverage. This process will increase the demand for oracle calls, thereby enhancing the buyback demand for NEST.

CoFiX 2.0 will enable automated hedging and asset allocation. Users can set asset allocation targets on-chain, and the system will automatically adjust to the edge of the Security Market Line through a game-theoretic approach. Once this game-theoretic asset management is initiated, it will automatically generate or offset leverage, further strengthening the repurchase demand for NEST.

In the STP( direct trading ) model, as long as there is price information flow, various trades can be designed. The difficulty lies in finding counterparties. If the NEST system is compared to Wall Street, then the DAO is equivalent to Goldman Sachs, serving as the absolute seller of options and profiting from time value. The DAO can acquire NEST from the market, pushing the system into a deflationary phase. Once this model is established, NEST will enter a more standardized financialization phase.

The traditional development path of blockchain projects is "consensus-price-ecology". However, the NEST team, after reflection, proposed a new path: "demand-ecology-consensus". This new idea stems from observations of current DeFi projects, where it is found that many popular projects, apart from providing liquidity, are actually creating liabilities.

In a non-cooperative game system, if it cannot create socially recognized new attributes and functions in a state of equilibrium, it can easily degenerate into a gambling game. Therefore, it is crucial to start from demand. The NEST team proposed a concentric circle model, starting from internal system needs and gradually expanding to a broader community. This approach can reduce uncertainty and make it easier to find resonance.

The development strategy of NEST emphasizes "no external overflow of demand", which means first satisfying the needs of the internal system and related ecosystem, and then gradually establishing connections with a broader community. This approach can help the project gain a foothold in the complex DeFi ecosystem.

The essence of demand is to continuously deliver value to the gaming system. A truly valuable system will exhibit new attributes and characteristics when it reaches a state of equilibrium. This is precisely the fundamental difference between successful projects like Bitcoin and ordinary games.