🪺Nested NUT Tokens
Last updated
Last updated
Nested Tokens (aka. "child" tokens) in the BASED NUT ecosystem are designed to provide liquidity, scalability, and enhanced gamification within decentralized finance (DeFi). These tokens are minted using another asset as collateral, and they inherit properties from their underlying assets, enabling seamless functionality and immediate tradability. By being "nested" within a base asset, they create more flexible economic models that can expand and deepen the ecosystem's liquidity and tokenomics. In our platform, the main token is $NUT, which serves as the root (or parent) token. All child tokens are nested under BASED NUT, therefore, $NUT is the primary root token connected to all nested tokens.
Collateral-Based Minting: Nested Tokens are minted using another asset as collateral, providing them with inherent value and utility. This ensures immediate tradability, avoiding the need for manual liquidity provisioning.
Asset Property Inheritance: Tokens inherit traits from their collateral assets, improving their ecosystem functionality and integration. The primary attribute is their link to the parent's token liquidity.
Gamified DeFi: The nesting mechanism introduces new layers of engagement, such as staking, arbitrage, and other DeFi-based interactions that enrich the ecosystem's user experience.
BASED NUT uses Mint Club’s bonding curve technology to mint nested tokens, making them instantly tradable without manual liquidity provisioning. Each token is connected to the $NUT token (total supply: 1), deepening the tokenomics and creating cascading effects across the ecosystem.
Nested Tokens rely on a bonding curve model to regulate their price and supply. Mint Club’s customizable bonding curves enable tokens to be minted with collateral, ensuring immediate utility and tradability. Each token is linked to $NUT, allowing flexible economic models within the ecosystem.
Bonding Curve Arbitrage: The BASED NUT ecosystem presents arbitrage opportunities between minting Nested Tokens via the bonding curve and trading in external liquidity markets. Taking advantage of price discrepancies between the two can be done as follows:
Minting: If the bonding curve price is lower than external market prices, users can mint tokens and sell them on the external market.
Trading from Liquidity Pools: If the external market price is lower, users can buy tokens from external liquidity pools and sell or burn them when the price aligns with the bonding curve.
This design creates a dynamic, self-regulating economic model within the BASED NUT ecosystem, enabling efficient market interactions and opportunities for traders, investors, and liquidity providers.
Nested Tokens, through Mint Club's technology, enhance the BASED NUT ecosystem by providing immediate liquidity, scalability, and engaging DeFi mechanics, offering a deeper and more dynamic token economy.
Find The BASED NUT page on MINT CLUB
