Project Vision
In addition to the infrastructure already in place, i.e. custodial asset management and consequently its Token Generation Event (TGE) in Q2 2022, Nest Egg will aim to be a reference for non-custodial asset management and an investment network built on Avalanche, allowing asset managers and traders to launch non-custodial decentralized investment funds directly for investors on the Avalanche blockchain, taking advantage of the high liquidity offered by TraderJoe DEX.
The Nest Egg network is designed to allow investors to deposit and withdraw funds into a smart contract (fund) that allows the asset manager to perform asset swap transactions and manage the fund portfolio without ever being able to withdraw investor funds. This is critical to the non-custodial nature of decentralized asset management.
To this end, the network uses TraderJoe DEX for asset swaps.
Why TraderJoe ?
TraderJoe is currently considered the most effective liquidity engine for the Avalanche ecosystem (ahead of Pangolin), offering more than 100 asset pairs for trading. In Q3 2021, the DEX saw a 34% increase in users and $1.1 billion in global trading volume in the last seven days. Additionally, TraderJoe is the second largest platform in terms of trading volume behind Uniswap with $4.29 billion in weekly swaps. Trader Joe is also the sixth largest defi protocol in terms of TVL with a total value of $2.59 billion.
A simplified fee structure is used where performance fees are charged on any appreciation in the value of the fund, subject to a high watermark. Fees are set by the fund manager. By eliminating management fees and complex fee structures, we aim to improve fund comparability and simplify the investment process. In addition, the fund manager is the initial investor in each fund, aligning incentives for investors.
The network also leverages strong tokenomics incentives through its EGG token to achieve sustainable, long-term growth in the network's assets under management. This is achieved through multiple channels, with the performance mining program key to efficient allocation of investor capital, while EGG Staking helps align incentives between token holders and network users.
A fixed network fee, starting at 10%, is charged on the performance fees that accrue to asset managers in the Nest Egg Network. Network fees are allocated to the network's treasury. In the first two years, these can only be deployed via a governance vote. Starting in year 3, network fees are initially made available for 1 month for network-improving governance proposals, after which the remainder is allocated to buy-and-distribute (see Performance Mining and Staking).
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