November Community Update
Post V1 Launch Update:
Nexus V1 vaults launched on October 31st 2021, 2 weeks later we think it’s a good time to share an update on how things are going and where we are headed.
This will be a relatively concise update as we would like to publish these updates semi-frequently going forward.
Product Update:
Twelve days after launching, the TVL of Nexus is up to $123M with 93% of TVL coming from the bEth and bLuna vaults.
TVL for Nexus has grown by over 50% in the last week. We are happy with the progress on AUM, and expect to see continued growth in these products through the end of the year.
Roadmap Update:
We published our Litepaper with the first version of our roadmap on Sep 1st 2021. Two and a half months later we have some updates we want to share with you.
DeFi 2.0 & Protocol Owned Liquidity
We believe that protocol-owned liquidity in addition to reimagined token inflation strategy will be cornerstones to the next iteration of DeFi, DeFi 2.0.
We want to make Nexus (and ultimately $Psi) a mothership that is able to persist and grow through all market conditions. We believe implementing the following strategies will enable this.
Bond Issuance Program
In Q4 through early Q1 next year we are prioritizing the development of a bond issuance program which will allow users to purchase $Psi at a discount using their assets. Discounted $Psi will be available for users to claim after some maturity date. Through this program the Nexus community fund will begin to build up a reserve of its own liquidity.
By owning its own liquidity we believe Nexus can reduce, and eventually eliminate the need to heavily incentivize liquidity pools (namely the Psi/UST) pool. We believe this can significantly reduce inflationary pressure on $Psi. Additionally, as these assets continue to grow, the Nexus DAO will become funded. This will allow community members to begin taking ownership of the Nexus community fund treasury and begin working on even more strategies and tools for the Terra community and beyond.
We view developing intrinsic value for $Psi to be of utmost strategic importance.
Inflation Strategy
We also believe that token inflation will be rethought in DeFi 2.0.
See Temple DAO for some concepts (Safe Harvest, Safe Premium) that we think are interesting once Nexus’ intrinsic value begins to grow.
Mechanics 1: Safe Harvest & intrinsic value
Through a combination of the above strategies we think we can take a radically new approach for token economics and design on Terra, and ultimately build an asset in $Psi that is less prone to the negative consequences of unsupported token inflation.
We believe that a combination of protocol owned liquidity, re-imagined token inflation design, and a continual forward march of valuable products for the Terra community, can set an example for how DeFi 2.0 can flourish on Terra.
Please see our updated product roadmap below:
Honorable mentions that did not make their way fully into our updated roadmap include a MIM vault for aUST. This is something we continue to assess, and will possibly look to prioritize for upcoming community updates.
Technical Update:
We have identified the need for some additional logic to be added to the bAsset vaults.
In the event that the borrowing rate on Anchor goes negative by more than the sum of the opportunity cost, bAssets will be withdrawn from Anchor in order to claim the staking rewards from bLuna rather than carrying out unprofitable Anchor Borrow yield strategy.
We will be upgrading the vault logic so that Nexus bAsset vault will automatically yield in the most optimized way available at any time. This update is scheduled to be implemented in November.
A number of front end bugs have been identified; our team is working through the list of these issues and we plan to resolve them in an ongoing manner. All reported issues have been purely UI/UX related.
Team Update:
We have recently hired two additional smart contract developers who will help us bring the Nexus roadmap to life.
We are still looking to hire a full time senior UI/UX designer, and another smart contract developer for Nexus.
Please see this link for the position descriptions. We would love to talk to you if you think you might be a good fit. ( https://cream-perch-3c4.notion.site/Openings-at-Nexus-Protocol-Public-c8b6ec3e779648818253fe5e2333c768 ).
Conclusion:
We hope you enjoyed the update from our side. We continue to feel incredibly honored to be building in this community. We are so excited about DeFi 2.0 and the possibilities for Nexus to continue to innovate on Terra and beyond.
Our next immediate priorities are bringing EthNexus to life, along with the Mirror Delta Neutral vault, and of course… The protocol owned liquidity program.
That’s all for now. Take care, and see you soon.
Twitter: https://twitter.com/NexusProtocol?s=20
Discord: https://discord.gg/p3fmKYfRkG
Telegram: https://t.me/NexusProtocolTG
