The Algorithmic Liquidation-Protecting Yield-Optimizer

Higher yields and added safety: Nexus Protocol launches with Node Capital investment

Or Harel

Morning. Your phone’s snooze function failed you (again). You frantically get ready for work, haphazardly throwing yesterday’s leftovers over the stove while you complete the rest of your rushed morning routine. You grab your breakfast, throw it into a doggy bag, run to your car, so you can sit in traffic on time. Finally, you get to work, and then it hits you. 

Did I Leave My Stove On?

Everyone has experienced the nagging, looping uncertainty that causes you to wonder if this is the time you’ll get back home and see firetrucks surrounding your building.

If you’ve been long enough in crypto you know yourself or via a friend - the fear of getting your loan collateral liquidated.

This feeling is what Nexus Protocol is trying to alleviate.

Nexus Protocol is a liquidation-protecting, yield-optimizing protocol which strives to be the gateway to the multichain world.

Since DeFi is still in its relatively early stages, many tasks have to be done manually, in a DIY fashion, to achieve better yields. Technical limitations prevent the retail investor from taking advantage of the best yield opportunities, complex strategies are difficult to create and implement on their own, and execution costs deter users from utilizing some better yielding strategies.

The Nexus solution removes the friction by offering a self-monitoring protocol that provides substantially better APYs, while saving time, reducing effort and, most importantly, alleviating the stress involved with leveraged investments.

Watch Your LTV

Today, In order to get a DeFi loan, you usually have to provide collateral in the form of a token. The problem is when your collateral value decreases, so does your LTV (loan-to-value) ratio, and this puts you at risk of liquidation. This risk compels you to constantly keep checking your token’s price (or again, put your trust in your phone’s notification service), which is anything but a fool-proof solution when the market is especially volatile.


Nexus Protocol will offer three different vaults, with the first launching very soon. 

Nexus Anchor Vault (V1) is where users can deposit bLuna or bETH to earn optimized rewards from Anchor borrow.

V1 capital flow

The second vault - launching in Q4/2021 - is the EthNexus Vault, which will offer around 10% APY for providing ETH.

EthNexus Vault

The third Nexus vault, due in  Q1/2022, is the Delta Neutral Vault - capitalizing on the Mirror Protocol - where users provide UST and earn UST in return.

Delta Neutral Vault

As a yield optimizer, Nexus Protocol capitalizes on existing money legos in the form of Anchor and Mirror yield services and wraps them in a simple app. Nexus Protocol will create a bot (using the same oracle and weighting logic as the one providing the data to the Terra Blockchain) but will gather the data twice as fast. This means it will keep the LTV in a safe range, automatically, while optimizing yields. Moreover, the protocol saves considerable time, effort, technical illiteracy, and transaction cost, by consolidating multiple steps into a few, as shown below.

automatic vs. manual

Risk Mitigation - Three Safety Mechanisms

Nexus has put in place many automatic safety mechanisms, which work in a cascading manner. It’s important to note that these potential bugs are not likely.

Emergency Mode was created to address a potential Anchor’s price oracle failure. Safe Mode was created to counter a potential Nexus’ price oracle failure, and Optimal Mode will function as the future default mode of the protocol.

The Builders and Sellers

With expertise from Apple, Balaan, and the first fintech to integrate Anchor, the Nexus team comprises six core contributors (including two full-stack developers), and with combined developer experience of over 20 years.

$PSI and nAssets

Nexus Protocol will offer two types of native tokens: nAssets and $Psi tokens. 

nAssets represent the assets deposited in Nexus vaults. The holders of the nAssets will be entitled to the Nexus vault's yield and may be exchanged at any time for the deposited assets.

The native token, Psi, is the governance token for Nexus Protocol. $Psi holders will also be entitled to stake and earn a pro-rata share of protocol fees.

Foot in the Door

The Nexus team is well aware that the biggest growth potential for bETH stakers lies with native Ethereum users, and they believe that these users will come for the ETH rewards and stay for the superior bETH rewards.

Next Steps  

The team has planned, built, and back-tested their strategies in order to hedge against additional edge cases such as $Luna rapid price drop, network congestion, anchor protocol irregularities, and more. 

Nexus plans to expand to additional top-tier SCP - such as Solana, Polkadot, and others - while targeting better, safer, yields.

At Node Capital, we believe that the freshly launched Columbus-5, coupled with the Inter-Blockchain Communication protocol, takes us one step closer to the imminent cross-chain future.

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