A new BSC protocol for decentralized reserve currencies
Decentralized reserve currency protocol Nemesis DAO has had a great week. We see notable increases in unique active wallets, transactions, and volume week over week. Built on the Binance Smart chain, NemesisDAO aims to create the go-to reserve currency that the Binance Smart Chain needs while optimizing for short and long-term profit for holders of NMS.
At the time of writing, Nemesis DAO has seen 144% more unique active wallets interact with its platform week over week, taking the figure to over 8,600. Those wallets generated almost 34,000 transactions, driving nearly $40 million in volume. Looking at the data through a longer, 30-day lens, we see the spike in activity began around the 3rd of December.
Interestingly, BTC and ETH prices were taking a nosedive at the same time. Arguably investors saw an opportunity to buy NMS in the dip. Looking at the price performance of NMS since its launch shows a rapid ascent to an all-time high of over $6,000. Increasing over 144% in the last 14 days.
How does Nemesis DAO work
Participating in Nemesis DAO is simple and promises healthy rewards. There are two main strategies for users of Nemesis DAO: staking and bonding. Stakers lock away their NMS tokens in return for more NMS tokens.
Bonders provide liquidity provider tokens (LP) or BUSD tokens in exchange for discounted NMS tokens after a fixed vesting period, meaning tokens will be redistributed to users bit by bit. The project is also a community-driven DAO with governance participants able to get involved in the forum and discussions on their Discord.
What is minting on Nemesis DAO?
Minting is the secondary way to accrue value using Nemesis DAO. When users mint NMS tokens, they sell their assets to mint from the protocol. Minting Actions are a cross between a fixed income product, a futures contract, and an option. The protocol quotes the minter with terms for a trade at a future date. These terms include a predefined amount of NMS the minter will mint and another amount when vesting is complete. The bond becomes redeemable as it vests. For example, in a 5-day term, after two days users can claim 40% of the rewards.
Minting is an active, short-term strategy. Therefore it is considered a more active investment strategy that has to be monitored constantly to be more profitable than staking. Allowing users to mint in such a mechanism will enable NMS to accumulate liquidity. Since Nemesis DAO becomes its own market, besides additional certainty for NMS investors, the protocol accrues more revenue from LP rewards bolstering their treasury.
Ways to benefit
There are several ways users can benefit financially from Nemesis DAO. The main benefit for stakers comes from supply growth — the protocol mints new NMS tokens from the treasury, most of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers will make a profit. Alternatively, the main benefit for minters/bonders comes from price consistency.
Minters/bonders commit capital upfront and are promised a fixed return at a set point in time; that return is given in NMS tokens, and thus the minter’s profit would depend on NMS price when the minted NMS matures. Considering this, minters benefit from the NMS token’s rising or fixed cost.
As with all new DeFi protocols, interested investors should do further research before jumping in. You can find the Nemesis DAO whitepaper here.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, ENS, FTM, IMX, FLOW, GRT, OMI, GALA, and CDC.