The Nash Exchange is live! Users who made accounts for our referral program can now log in and start using the platform.
Nash has taken a major step towards achieving the vision we set out in the first article of this series: a world of greater autonomy, prosperity and transparency brought about by decentralized finance.
We’d now like to discuss how our exchange will contribute to that vision, what you can do with our initial product and how to get started.
First, let’s take a step back and review the big picture.
Why decentralize finance?
Nash believes that decentralized technology promotes capital freedom. This generates prosperity, helping economies and businesses grow.
Consider the possible benefits of blockchain:
- Transactions are near instant, borderless and available 24/7, with low fees. Borderless networks make it easier to invest where the best return is and raise money where it is cheapest. Underdeveloped markets hence gain access to new wealth and opportunities.
- Simple, trustless micropayments can help distribute resources efficiently, like renewable energy.
- Digital securities benefit investors by bringing the protections of traditional finance into the digital asset space. They could revolutionize securities trading by automating processes that previously took days.
- Agreements can be enforced automatically, so trusted third parties are not required for transactions or escrow. The breakdown of trust can have terrible consequences. The credit freeze of the 2008 financial crisis could have been softened by blockchain-based instruments that removed fears around settlement.
- Blockchain is ideal for “Know Your Customer” background checks. Users retain control over their data, granting access only when they wish.
- Blockchain can help regulators combat money laundering. Anti-money-laundering (AML) tools work more effectively on distributed ledgers, which make it impossible to hide or fake transactions. Blockchains cannot be bribed.
We believe that, because of these security and efficiency benefits, much of the traditional financial services industry will make use of blockchain in the near future.
Nash aims to offer the premier platform for decentralized financial services.
We hope to achieve this goal by overcoming the main challenges in the way of mass adoption of blockchain technology. This is a bold vision for a small startup, but we are not afraid – nor are we alone. Nash has conviction in our capabilities and the community backing us is amazing.
Our company’s initial product is the so-called minimum viable product (MVP) version of the Nash Exchange.
A fast and user-friendly non-custodial exchange
Blockchain technology is still in a nascent stage of development. There are many issues facing existing trading platforms, as we describe in this article.
Nash sees three main problems facing blockchain as it stands: ease of use, trading limitations and regulatory uncertainty.
Our fast and user-friendly non-custodial exchange overcomes these problems.
Ease of use
Blockchains like Bitcoin, Ethereum and NEO are not compatible with each other. Users need separate wallets to store assets for each chain. Managing a number of personal wallets can require various web interfaces and desktop applications, resulting in a steep learning curve for new users. Faced with stories of outlandish personal losses and investors going to eccentric lengths to recover their private keys, many people choose simply not to bother and leave their assets on centralized exchanges. This defeats the purpose of inherently non-custodial assets. Indeed, attacks on centralized exchanges have shown no signs of slowing down during 2019.
Nash overcomes this problem by offering simple funds management for several blockchains. Our platform presents users with a single account, like an online bank, but thanks to our zero-knowledge key manager, no funds fall under our control.
When you set up your Nash account, we give you a twelve-word secret phrase. This is used to generate your personal wallets for Ethereum, NEO and any other blockchains we may add in the future. Nash offers you a simple set of tools for interacting with your funds while never being able to access them ourselves.
What’s more, our platform is intended to be used by everyone. Our designers have developed intuitive interfaces, which have been revised in the light of extensive testing – and they will only get better as we work together with our community on our user-centered development process. For example, Nash uses a single, simple window to handle all transfer requests and we have constructed a “Basic” view of our exchange that lets anyone make a trade without being overwhelmed with information.
Secure, high-performance trading
Since different blockchains are not compatible with each other – they are independent networks – it is impossible to trade directly between chains in a straightforward, performant manner. Even if cross-chain trading were easy, the relatively slow computational cycles of blockchains rule out creating a high-performance exchange on the blockchain alone. Current decentralized exchanges, built upon smart contract platforms, are severely limited by the speed of their underlying blockchains. This is another reason why users are driven to use insecure custodial solutions. The funds stolen from centralized exchanges are now well in excess of 1 billion USD.
Nash uses a revolutionary off-chain matching engine to provide high-performance trading that remains secure and non-custodial. Our matching engine manages a system of state channels across different blockchains, enabling genuine cross-chain trading. However, since the matching engine itself runs off the blockchain, it can process many trades per second and handle complex order types, like a centralized exchange. Unlike a centralized exchange, Nash never takes custody of users’ funds.
Besides being non-custodial, Nash is protected from attackers who might try issuing fraudulent trades. The matching engine can only trade using valid blockchain signatures for addresses with balances in its state channels, so there can be no hidden trades happening.
Regulations around decentralized finance are immature but evolving. Businesses wishing to make use of blockchain technology need to be sure they will be compliant, otherwise their operations might suddenly be undermined by the law.
Nash aims to be compliant. Moreover, by registering the Nash Exchange token (NEX) as a security, we laid the groundwork for future companies to release their own digital security tokens. Our users and investors can know that they are secure – both technologically and legally.
An integrated platform
Our vision does not stop at creating a cryptocurrency-to-cryptocurrency exchange. In essence, Nash is a fintech company using blockchain as infrastructure for the financial services of the future. We want everyday users around the world to be able to invest in, trade and make payments with digital assets. The Nash Exchange hence forms the core of an integrated financial services platform.
Our non-custodial exchange will soon be joined by Nash Pay, a service that makes it easy for merchants to accept digital asset payments. Nash Pay will use the Nash browser extension and Nash mobile app to integrate customers’ accounts seamlessly with websites and physical merchants. Automatic currency conversions will be possible on our non-custodial exchange.
Nash is building a network of national currency partners around the world who will make it possible for users to buy and sell digital assets using fiat currencies. Transactions can be executed from within our web platform and funds are sent directly to users’ personal accounts. This functionality is already available in some jurisdictions. Soon, our partners will also let merchants who use Nash Pay settle transactions directly to national currency.
Since we believe the future of finance lies on open networks powered by public-key cryptography, Nash is working towards obtaining a securities trading license. This would allow us to list our own Nash Exchange token, but also other digital securities that are created in the future. We are confident that the advantages of decentralization will make this a major asset class in years to come, with traditional stocks being tokenized on the blockchain.
Nash will hence represent a single platform where anyone can trade, pay and invest in a borderless, non-custodial manner.
The Nash Exchange at launch
Nash will continue to expand and improve our products over the coming months, introducing new functionality and additional trading pairs – including Bitcoin.
Here are the main areas of the Nash platform that will be available in our launch MVP:
We create Ethereum and NEO accounts for all users. These accounts are capable of holding ETH, NEO and GAS, as well as ERC-20 and NEP-5 tokens. Although not all ERC-20 and NEP-5 assets can be traded on the Nash Exchange, they can be transferred and stored using our funds management tools. Most NEO-based tokens and the top one hundred Ethereum-based tokens are represented on the Nash platform.
When transferring funds on the blockchain, always remember to send a small test transaction first.
Nash accounts are split into two parts: a “personal account” and a “trading account”. The personal account consists of the wallets generated during sign-up. The trading account represents the funds locked in our state channel smart contracts, which are able to be traded on the Nash Exchange. Funds must be transferred from the personal account to the trading account in order to be traded. Since Nash is non-custodial, only users are able to withdraw funds from their trading account.
Non-custodial, cross-chain trading
Nash is open with cross-chain trading for the Ethereum and NEO blockchains, offering a number of asset pairs. Our base assets are ETH, NEO and USDC, with the following markets available:
Although these are our base markets, our innovative UI makes it easy for you to swap the direction in which a market displays. If you would rather see a market displayed as, for example, “USDC / GAS”, then it’s possible to flip the order book at the push of a button.
The Nash Exchange offers three main types of order:
- Market: Make your exchange instantly, matching with existing orders to give an average market price.
- Limit: Set a specific price at which to exchange assets. Your order will be added to the book and can match with other orders at this price or better, but will not go beyond it.
- Stop: Stop orders are conditional on a specific “stop price” being reached. The stop price acts as a trigger for another order. If you choose “Stop-market”, a market order of the size you requested will execute as soon as your stop price is reached. If you choose “Stop-limit”, a limit order will be placed at your specified limit price, executing when that price is reached.
For users who do not need advanced trading functionality, our “Basic” exchange view lets anyone create an order quickly with a simple, intuitive interface.
Exchange fees are calculated based on a user’s activity on the exchange. Nash calculates a user’s 30-day moving average volume using the volume of trades associated with their account as a percentage of total exchange volume.
Market makers are people who place new orders on the order book, adding liquidity to the market. Takers are people who place trades that match with these existing orders, taking liquidity out of the market. Nash charges no fees for maker orders.
Fees are deducted from the taker in the token denomination of their trade. For example, if a low-volume user places a market order trading 1,000 NEO for ETH, the exchange will collect a fee of 2.5 NEO (1000 * 0.0025 = 2.5).
When placing a limit order, you can specify if you wish your order to be “Maker only” so as not to pay any fees.
Our full trading rules can be found here.
Nash has begun integrating national currency partners in certain jurisdictions. Fiat ramps are already live in the US and will be operational in Europe next week. If they are available in your location, you’ll be able to create an account with our partners to buy and sell digital assets using national currency. All funds are transferred directly into your Nash personal account.
If you wish to raise your trading limits or stake Nash Exchange tokens (NEX), you will need to complete a Know Your Customer (KYC) check.
Our platform is designed to make this process easy using our specialized mobile app.
Nash Exchange token (NEX) staking
NEX holders can stake their tokens in a smart contract that pays out a proportion of the Nash Exchange’s revenue.
Dividends depend on two factors:
- The number of NEX tokens a user stakes as a proportion of the total 50,000,000 supply.
- The period of time for which the stake is active.
The more tokens staked, the higher the dividend will be. The longer the stake, the greater the proportion of fees received will be (the “staking rate”).
The base staking rate is 25%, when a user stakes their NEX tokens for one month. This increases linearly up to 75% if a user is willing to stake for two years, which is the maximum staking period.
Dividends are automatically added to a user’s trading account. They are paid out on a daily basis, shortly after midnight UTC. Nash provides monthly staking statements that aggregate these payments into a single figure for accounting purposes. Since the fees on a trade are charged in the currency being exchanged, users receive dividends in every asset currently being traded on Nash.
For legal reasons, we cannot convert dividends for users. However, we are developing a tool to make this possible with a single click.
An example dividend
Say that Nash has generated fees equivalent to $1,000,000 in the last 24 hours and that a user owns 1,000 NEX tokens out of the total 50,000,000 supply. If the user has staked NEX at the two-year staking rate of 75%, they are eligible for a dividend worth: $1,000,000 ∗ 1,000 / 50,000,000 ∗ 0.75 = $15.
Can’t wait to use the Nash Exchange? We’ve created a series of guides covering everything you need to know!
How do I create an account?
This guide walks you through our sign-up flow to register for Nash, generate your individual asset accounts and enable two-factor authentication (2FA) for added protection.
How do I trade on the Nash Exchange?
To trade on Nash, you’ll first need to send funds to your personal account, then transfer them to your trading account. This guide takes you through the process.
How do I buy/sell using a national currency?
If Nash has integrated a currency partner in your location, you’ll be able to buy and sell using national currencies. Follow this guide to learn about the process.
How do I complete identity verification?
You’ll need to complete identity verification to enable higher trading limits and qualify for NEX token staking. This guide describes how to use our web platform or mobile app to complete your identity check.
How do I stake Nash Exchange (NEX) tokens?
NEX tokens can be staked from your personal account once you have verified your identity. This guide tells you how to transfer tokens and configure your stake.
Which countries are not allowed to trade on Nash?
Nash will launch globally, although we remain subject to the regulations of each jurisdiction around the world. We will be trading non-security digital assets in all places that support our KYC requirements. This should be almost everywhere – however, there are some exceptions, which are detailed here.
Now that Nash is live, tickets for our referral program can be activated. If you’ve referred friends, it’s time to remind them about Nash!
Want to help us achieve our vision? Check out our careers page – we’re hiring!