Nebula Protocol

in #blockchain2 years ago (edited)

Let's discuss about Nebula and it's unique features and function.

Nebula is a protocol built on Terra that enables users to invest in narratives and strategies expressed through decentralized basket instruments called clusters.
Clusters are smart contracts that manage a dynamic investment strategy.

Nebula Cluster
Cluster is a decentralized index that tracks a programmable allocation of assets. Each Cluster is implemented as a smart contract that incentivizes users to execute rebalancing transaction in amount that maintains its token balance inline with cluster target allocation.
A cluster is an instance of a smart contract, an account like entity that can command a balance and can invoke restrict set. It operation in Terra Blockchain.

Advantage of Cluster

Maximizing Flexibility: Nebula is designed to imposes as few restrictions on the potential design of cluster as possible. This includes, the asset, the logic, and the algorithm that defines how Cluster composition are rebalanced and managed.

Minimizes Centralized Control: Nebula aims to give decision making power to those that uses the protocol, middle men are being cut off.

Increases Index Maintenance/ Adjustment of Efficiency: Nebula implements various incentives and other machanism to encourage the community to actively take part in maintaining the health of the protocol.

Those that can interact with Nebula Protocol

  1. Traders
  2. Liquidity providers LP
  3. Rebalancers
  4. Arbitraguer
  5. Voters
  6. Privileged Role
  7. Cluster Manager

Governance DAO
Governance is the democratized process through which proposals for any changes in Nebula Protocol are introduced and accepted by the community through voting. There are no admin keys with privileged access. After the initial bootstrapping of contracts, the Gov contract is set to be the owner of the Nebula Protocol contracts and all changes must be made through the governance with the procedure defined in this section.

Nebula Token
The Nebula Token (NEB) serves as Nebula Protocol's governance token. Only users with a staked NEB position can vote on polls, and each user receives voting power weighted by their amount of staked NEB. For every poll, a user can choose to allocate up to their total staked NEB. Users with higher NEB stake will therefore have more influence when deciding in governance polls.

The following steps outline the governance procedure:

  1. A new poll is created with an initial deposit that meets proposal_deposit.

  2. The poll enters the voting phase, where it can voted for by anybody with a staked NEB position. Users can vote yes, no or abstain and can assign how many of their staked NEB to use for voting.

  3. The voting period ends after voting_period blocks have passed.

  4. The poll's votes are tallied and passes if both quorum (minimum participation of all staked NEB) and threshold (minimum ratio of yes to no votes) are met.

  5. If the poll passes, its contents will be executed after effective_delay blocks have ended. The poll must be executed prior to expiration_period, otherwise it will automatically expire and no longer be considered valid.

  6. If the poll passes, the deposit_amount will be returned to the poll creator. Otherwise, it will be kept within the governance contract and split evenly between all current NEB stakers.