NerveNetwork mainnet consensus combined with AMM protocol opens a new playground for DeFi
HU Tao, editor of Chain Catcher
NerveNetwork project is one of the earliest cross-chain bridges in the DeFi market and currently supports more than 10 public chain networks.
On December 14, NerveNetwork, a decentralized asset cross-chain protocol, made an official mainnet upgrade announcement, having supported the AMM protocol on the underlying blockchain and supporting the combination of mainnet and cross-chain assets as LP Token that can be used for mainnet pledging, which makes the project continue to take a big step towards its vision.
It is reported that NerveNetwork was launched on mainnet in July last year and is dedicated to building a decentralized bridge for cross-chain interoperability of digital assets, and is one of the earliest cross-chain bridges in the DeFi market. Currently, the protocol has supported more than 10 public chain networks such as ETH, BSC, Cronos, Avalanche, Arbitrum and Fantom, with total assets on the chain worth $75.8 million.
In terms of the economic model, users who hold and stake 200,000 NVTs can register on the chain to join the nodes, which are ranked according to the amount of assets staked by the nodes. The top 15 nodes are virtual bank nodes, which are used to create and manage multi-signature addresses and are responsible for the transfer-in verification and transfer-out execution operations of the assets. The top 35 nodes are consensus nodes (including virtual bank nodes), and other staked nodes are alternative nodes to ensure the secure operation of the network.
The virtual bank, consensus nodes, and alternative nodes are all eligible for NVT rewards, but with different reward weights. It is understood that the annualized inflation rate of NFT is about 5% and will be decreased once a month.
In this upgrade, NerveNetwork cancels the main cross-chain mainnet assets such as ETH/BNB/HT/OKT/NULS from participating in pledging on the one hand and introduces four LP assets for main network pledging on the other hand: NVT_USDTN_LP, NVT-ETH_LP, NVT_BNB_LP, and NVT_NULS_LP. The staking rewards are 10 times greater than the staking participation using NVT assets alone.
This is a major adjustment of NVT economic model, eliminating the single coin staking of other main chain assets makes the mainnet inflation output all used to incentivize the endogenous cycle of its own project and used to incentivize the LP rewards of NerveNetwork main assets, which will bring benign stimulation to the liquidity of NVT assets and is a long-term sustainable benefit.
At the same time, NerveNetwork has simplified the way for users to obtain gas fees by its cross-chain solutions, created a completely decentralized trading platform, enabled users to travel and participate in multi-chain applications.
So far, projects that combine DeFi yield farming with mainnet consensus are still relatively rare, so it can be said that this upgrade of NerveNetwork is a fresh way to apply DeFi, and we are very much expecting that these innovative moves can bring some new market opportunities to the crypto industry.