Abstract: NexisDAO launches an over-collateralized decentralized stablecoin protocol to fuel the open financial market on Nervos.

Nowadays, the blockchain technology is laying the foundation for the next generation of Internet with a rapid development pace. This has resulted in a broad consensus that a number of public-chain developers are seeking for the answer to the separation of blockchain ecosystems through technology, thereby building a real world of inter-connectivity.

Thanks to Nervos Network’s active exploration and innovation in the space, NexisDAO, which runs on blockchain, is committed to accelerating this process.

NexisDAO is an open source decentralized autonomous organization (DAO) running on Nervos Network (Nervos for short), and it runs a dencentralized stablecoin system called the Nexis Protocol. Through Nexis Governance, users can approve their assets to be used as collateral to generate stablecoin TAI.

What we call Nexis Governance is the community organized and operated process of managing the various aspects of the NexisDAO Protocol. And backed by over-collateralization, TAI is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. Resistant to hyperinflation due to its low volatility, TAI offers economic freedom and opportunity to anyone, anywhere.

Advanced and Smarter Scalability

NexisDAO supports smart contract from the underlying technology benefiting from the fact that Nervos’ Cell model is a highly abstraction and extension of UTXO. Nervos also supports virtual machines so that NexisDAO has more advanced and smarter scalability.

Customized Asset Management

For NexisDAO users, you are free to find your way of managing and storing your assets: The design of Nervos native token CKB ensures that even when cryptography has been revolutionary or the current hash function or signature method is out of date, it still remains where you can continue to operate safely without going through a hard fork.

High Compatibility

Users can use ETH, TRON, or other wallets to access and manage NexisDAO. On account of the interoperability of Nervos, NexisDAO is compatible with all existing blockchain standards and can be accessed by any one-stop service.

Multi-chain Asset Collateralization

As NexisDAO’s access to assets is completely decentralized, NexisDAO will support multi-chain asset collateralization in the future. And in accordance with NexisDAO governance principles, each collateral type, such as bridged assets, must be reviewed and voted on by DAO prior to adoption.

dCKB and Liquidity Shortage

NervosDAO, as a system smart contract of Nervos, is one of the important highlights of the CKB tokenomics. Holders can deposit CKB into NervosDAO at any time to earn yield. However, NervosDAO is essentially a fixed term deposit with a minimum deposit period, which results in a liquidity shortage of CKB. Hence, dCKB, a tokenized alternative, is introduced by NexisDAO regarding the liquidity shortage. Users deposit CKB into NervosDAO and mint exact amount of dCKB. In this way, users can achieve mobilization of capital by earning CKB’s fixed-rate interests without locking the entire liquidity of CKB, as dCKB can be traded, collateralized and transferred again. And of course, users can burn dCKB to withdraw their deposits from NervosDAO.

How to mint TAI?

Through NexisDAO, users are allowed to generate TAI by leveraging over-collateralied assets approved by NexisDAO Governance. The initial collateral ratio is 150% and only CKB is supported. E.g. Assuming your CKB is currently worth 150 US dollars, you lock your 150USD-worth CKB in the contract, then you will be able to mint up to 100USD-worth TAI. Anyone has equal access to the NexisDAO, minting TAI and exploring financial opportunities which is purely decentralized. Since TAI’s minting refers to MakerDAO’s over-collateralization model, interest rates will be automatically adjusted to balance supply and demand through an autonomous feedback mechanism. When prices fluctuate, the 1:1 peg between TAI and US dollar can be quickly maintained. On top of that, Anyone can mint TAI to earn more or swap TAI for any safe-haven assets. TAI can also be treated as any other crypto currency asset, which has 4 functions: store of value, medium of exchange, unit of account, and standard of deferred payment.

Funding and development

NexisDAO has currently received joint funding from Amber Group and Nervos Official. In the next step, NexisDAO will continue to work to minimize the volatility of TAI associated with the crypto market and build a pathway to the open finance for Nervos Network, enabling the crypto assets become more flexible and accessible to everyone of us. In the near future, NexisDAO may become a key infrastructure in the Nervos ecosystem, and will play an important role in building investment portfolios.

Disclaimer:

To ensure the stability of TAI, liquidation will be triggered when the value of collateral falls and its value cannot support the value of TAI. The default liquidation threshold is 1.5 times the value of TAI. Different collaterals will vary due to their price volatility. Anyone can execute the liquidation process, and 5% of the liquidated assets will be used to reward the liquidator’s contribution to maintaining the protocol, and the other 95% will be auctioned in the form of Dutch auctions.