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Peanut

Peanut

Since 2015 our mission has been to accelerate decentralized apps adoption by delivering efficient easy-to-use blockchain products

Since 2015 our mission has been to accelerate decentralized apps adoption by delivering efficient easy-to-use blockchain products

50,000,000 NUX were minted at genesis.

NUX was deposited to presale addresses and public participants right after each sale accordingly.

Tokens were unlocked in equal parts on a monthly basis during the next 25 months.

NUX was deposited to presale addresses and public participants right after each sale accordingly.

Peanut (NUX) - advanced price balancer

Peanut (NUX) is a set of smart contracts that automatically balance prices after each trade to help LPs earn more and reduce slippage without any manual effort. Benefits include:

-Decreased non-permanent losses, which reduces passive income

-Reduced slip

-Command Token Reward

-No manual effort: Peanut does everything automatically

From the very beginning, decentralized exchanges (DEXs) arose, which captured a significant part of the cryptocurrency market by capturing market share from centralized exchanges (CEXs). At the same time, DEXs pioneered new ways of creating a market and providing liquidity, as well as incentivizing token holders to leverage their assets and generate income.

DEXs currently capture about 13% of the entire cryptocurrency market, with the leading automated marketplace (AMM) manufacturer, Uniswap, recording more volume than many leading CEXs, including Kraken. On busy days, it even outperforms the largest US exchange, Coinbase.

Problem with DEX

Uniswap Liquidity Providers (LPs) that pool paired assets such as an equal weight of ETH and USDT receive a portion of all token swap fees. Currently, the commission paid to LP is 0.3%. LP may seem like an easy way to make money, but it comes with certain risks.

Every time a trader swaps tokens using AMM, the price of the tokens in the pool changes. This affects the value of the total assets of all LPs. When one of the tokens in the pool increases or decreases dramatically in price, which often happens, LPs suffer what is known as an inconsistent loss (IL). As a result, when they are about to withdraw their assets from the pool, the value of their holdings has decreased.

The threat of IL makes trading all but the most liquid pools of the largest cryptocurrencies a risky business. It's too easy for the 0.3% profit that LPs make on each swap to outweigh the losses due to IL. Moreover, since each DEX trade affects the price of the pooled assets, it briefly causes the DEX prices to become out of sync with the prices of centralized exchanges and other DEXs. This leads to arbitrage where experienced traders seek to capitalize on these price divergences.

On-chain arbers launch large orders on the DEX, paying a higher fee for including their tx in the first block. This is great for those sophisticated traders who know how to profit from such opportunities, but it doesn't benefit ordinary users or liquidity providers in any way. Until these issues are resolved, the value of decentralized exchanges will be seriously undermined.

“Having slippage is a huge inconvenience and can sometimes carry significant risks for the DEX. Peanuts are a great solution to this problem. By using only 10% of user funds centrally (cross-exchange arbitrage), Peanut manages to achieve significantly higher efficiency of the mechanics and profit for users,” commented Mikhail Egorov, founder and CEO of Curve.

The cryptocurrency market needs a DEX structure that can support trustless trading and incentivize liquidity pooling without exposing participants to price risk and potential losses. However, until now the solution to this problem has been elusive.

Introducing Peanut, an Advanced Price Balancer To solve the problems inherent in the DEX, we have developed Peanut, an advanced price balancing tool. Peanut was developed by Remme, one of the most experienced and experienced teams in the crypto space, with a pedigree that spans several years.

Peanut (NUX) is a set of smart contracts that automatically balance prices after each trade to help LPs earn more and reduce slippage without any manual effort. Benefits include:

-Decreased non-permanent losses, which reduces passive income

-Reduced slip

-Command Token Reward

-No manual effort: Peanut does everything automatically

How Peanut Works (NUX)

Uniswap's current model requires LPs to provide 100% of the assets they wish to pool in a single transaction, with a 50/50 weight of each token based on each asset's respective market value. Once LP makes these assets available to Uniswap's liquidity pool, they will be at the mercy of IL and are particularly prone to issuing large buy and sell orders that change the market price.

In the case of Peanut, 90% of the LP's liquidity goes directly to the Uniswap pool. The remaining 10% goes to the Peanut protocol to serve as a price balancer. Just as peanut beans have two edible parts (known as cotyledons, note), peanuts divide LP assets into two parts:

-90% is used to provide liquidity on Uniswap or other DEX (pull with paired tokens)

-10% is used for automatic tiered price balancing between Uniswap, other DEXs and CEXs.

The Part 2 pool is used on two levels to provide lightning-fast trading to maintain price balance:

Level 1 - ETH account for onchain transactions on DEX.

Level 2 is an account on CEX where the bought or sold token can be traded.

When large buy/sell orders are placed, the Peanut pool automatically and simultaneously executes the corresponding trade on two levels i.e. other DEXs and CEXs. After the completion of trading operations, Peanut performs the calculation of earned income.

This means that any potential price movement from large trades on the DEX can be immediately mitigated by matching it on the CEX, protecting the LP from slippage.

Liquidity providers can withdraw their assets from Peanut's two-part pool system at any time, just like with Uniswap. As a result, LPs can enjoy the full benefits of token pooling and earn 0.3% fees with less risk of intermittent loss.

Peanut is a breakthrough for AMM with its hybrid system that uses the best elements of DEX and CEX. This allows trustless token swaps and revenue sharing, dramatically reducing the risk of intermittent loss and pre-launch.

Timeline

Patents

Further reading

Title
Author
Link
Type
Date

Looking Back on 2021: A Year in Review from Peanut - Peanut.trade - Medium

Alex Starikov

Web

January 1, 2022

Looking Back on 2021: A Year in Review from Peanut - Peanut.trade - Medium

Alex Starikov

Web

January 1, 2022

Documentaries, videos and podcasts

Title
Date
Link

References

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