Project Insight: Nerve Finance

Introduction

Slippage can happen in many markets, but it is much more predominant in crypto due to the high volatility of cryptocurrencies. It is a common experience when trading on most Decentralized Exchanges (DEXes), which is at least partially attributable to its non-centralized nature. Sometimes, slippage can be positive if the price drops below the intended price, but it is the negative swing that is usually experienced across DEXes. Traders often lose a portion of their capital when swapping their assets, and it may be substantial if slippage is high.

To improve users' experience when swapping on DEXes, Nerve Finance has implemented a swapping mechanism that will reduce slippage to the barest. Nerve specifically focuses on stablecoin liquidity, making stablecoin swaps attractive for users wary of risky investments.

About Nerve Finance

Nerve Finance is an automated market maker on the Binance Smart Chain (BSC). It was launched on March 1, 2021, and is the first Stableswap AMM on the BSC.

Nerve Finance utilizes the Stableswap mechanism, making it possible to achieve slippages far lower than elsewhere in the industry. Nerve is specifically curated for the trade of stablecoins and pegged assets. The platform launched with an initial pool of three stablecoins - BUSD, USDC and USDT but has expanded with the addition of pools for pegged BTC and pegged ETH, with more in view for the future. 

Features Of Nerve Finance

1. Non-Custodial

Nerve Finance is a non-custodial platform. No one else apart from users has access to users' tokens.

2. Very Low Slippage 

Swapping through Nerve's platforms guarantees the lowest possible slippage: much lower than what is obtainable in other AMM DEXes. 

3. Trustless Bridge

Nerve has a bridge feature which enables users to transfer BTC, ETH, and USDT to or from BSC. 

How Is Nerve Finance Ahead Of The Competition? 

Nerve Finance excels in two main areas: the aforementioned minimization of slippage and its BSC bridging capability.

1. Slippage

Compared with the largest BSC AMM, PancakeSwap, Nerve Finance delivers almost zero slippage. The low slippage means users can see decent savings by swapping stablecoins or other pegged assets through Nerve.

2. Nerve Bridge

Before the advent of Nerve Finance, the main option available for users to move assets to and from BSC was Binance Bridge. The main issues with using Binance Bridge are that it is custodial and does not accommodate all levels of users because of its transaction limits. Nerve bridge has no transaction limits, thus enabling users to transfer assets to and from BSC in a truly decentralised manner.

Nerve Bridge integrates AnySwap's cross-chain DEX with Nerve's high liquidity and ultra-low slippage to deliver a faster and cheaper bridging service. More about how Nerve Bridge functions can be seen here. 

Tokenomics

Nerve Finance has the NVR token as its governance token. NVR has a maximum supply of 100 million and is issued on-chain as rewards to users who provide liquidity to Nerve's pools as well as stakers. Rewards are allocated to the pools as follows: 

• Stablecoin 3Pool LP 49%
• NRV/BUSD Cake-LP 27%
• fUSDT-3Pool LP 6%
• xNRV 5%
• BTCB/anyBTC LP 5%
• ETHB/anyETH LP 5%
• UST-3Pool LP 3%

The emission schedule is as shown below: 

Holders of NVR have the ability to vote on platform proposals, allowing the Nerve community to be involved in its decisions.

Conclusion

Many Automated Market Makers exist on the Binance Smart Chain. While these AMMs have helped DeFi run smoothly, many of them are prone to slippage at levels that do not make for the best user experience.

Nerve Finance has provided a low-slippage platform for swapping stablecoins and pegged assets. With Nerve, DeFi users can now get the best swap rates and efficiently bridge their assets to and from the Binance Smart Chain network.

For more information about Nerve Finance, visit the project's official links!

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