Nexus Protocol (PSI)

Basics

• Based in:
• Started in / Announced on: 13-7-2021
• Testnet release:
• Mainnet release: "Nexus is targeting a mid-late September launch of its Initial Phase" (26-8-2021). Went live by the end of 10-2021.
• From the Terra blog (26-8-2021):

"Risk-minimized vaults for Anchor borrowers and Mirror delta-neutral strategies to maximize yield and eventually, serving as a gateway to yield-generating products in the swelling Terra ecosystem."

Audits & Exploits

• Bug bounty program can be found here, up to $150,000 (1-11-2021).
• From the Terra blog (26-8-2021):

"Nexus’ team has implemented their design rapidly, preparing for mainnet deployment after the Columbus-5 mainnet goes live, already under audit via a Terraform Capital auditing partner. Currently under audit via Halborn Security."

Report got published.

Token

Launch

• From the Terra blog (26-8-2021):

"The official launch will be preceded with a public sale on Star Terra, Terra’s upcoming gamified IDO platform, and Pylon — a payment-in-cashflow generalized framework built on Anchor that includes Pylon Gateway, an IDO launchpad."

Utility

• From the Terra blog (26-8-2021):

"The PSI token is a governance and protocol fee token that enables pro-rata shares of excess yield generated by Nexus vaults. Recently, Nexus announced that PSI tokens would be airdropped to ANC governance stakers on Anchor, rewarding Anchor users that lock-up their tokens to participate in Anchor’s governance."

Other Details

nAssets

• From the Terra blog (26-8-2021):

"nAssets are tokenized representations of assets deposited in Nexus vaults, entitling them to vault yield and can be swapped back to the original asset freely."

Technology

• Whitepaper can be found here.
• Code can be viewed here.

Implementations

• Built on: Terra

How it works

• From the Terra blog (26-8-2021):

"Simple, one-click vaults for borrowing on Anchor rely on Nexus’ strategies to minimize the risk of liquidation while maximizing capital efficiency. Nexus’ concept technically applies to all types of collateral, such as bLUNA, bETH, and future collateral. It’s designed to simplify the borrowing process for newcomers or users not as attuned to protocol parameters, LTV ratios, and how to borrow safely. Nexus primarily accomplishes this for Anchor vaults via principal-protected single-asset staking. But it also infuses Mirror V2 into the mix, utilizing a distinct method for outpacing the Anchor deposit rate.

Overall, the bLUNA vault is designed to offer borrowers a one-click avenue to maximize yield from borrowed UST, reduce liquidation risk for open positions, and scale ANC rewards claiming by eliminating the need for manual airdrop claims.

While the bLUNA vault requires opening a borrow position on Anchor, the UST vault is more straightforward. Quite simply, Nexus plans on outpacing the Anchor deposit rate (~20% APY) by focusing not on Anchor, but Mirror. At a high level, Nexus hedges the Impermanent Loss (IL) risk of provisioning liquidity to mAsset/UST pairs (liquidity on TerraSwap) with mAssets minted using aUST as collateral or taking long positions in mAssets. Nexus plan includes 3 components:

1. Impact of Weighted APR
2. Automated Mirror Mint Liquidation Level Optimization
3. Automated MIR Rewards Claiming

Nexus wields a combination of all 3 components to optimize risk-adjusted yield for UST vault depositors above the Anchor rate, with some similar mechanisms as the bLUNA vault used."

Roadmap

• Can be found [Insert link here].
• From the Terra blog (26-8-2021):

"The team is exploring a concept known as ETHNexus, a yield-optimized vault for bETH on Anchor that derives its cross-chain functionality from ETHAnchor, the Ethereum-side version of Anchor protocol. Deposited stETH from Ethereum will be swapped to bETH and operated within the Nexus ETHNexus vault, offering optimized yields for stETH on Terra higher than many incumbents on Ethereum — helping Terra absorb more value from the stETH market."

Team, Funding and Partners

Team

• Full team can be found [here].
• From the Terra blog (26-8-2021):

"Nexus is currently a team of 6 passionate community members who initially started working together on Nexus after reviewing an Agora post written by one of their core contributors."

Funding

• Has funding from Arrington XRP Capital, Blocktower, DeFiance Capital and others (4-11-2021).

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