Introduction to Nether

Basic guide to an understanding of Nether Protocol.

Nether is built for the purpose of acting as a silent servant for Ethereum Network's upcoming security consensus while supporting L2s adoption and usability in a longer vision by providing meta-transactions between layers.

The meta-token is called NETHER, a synthetic version of native ETH. The token itself is a cross-layer agent that is committed to being used as transaction gas fees to help out users to execute their L2 transactions with its bridge function itself.

While Nether provides NETHER to be used as a meta-transaction token to help out new roll-up users to easily onboard, underlying tokeneconomics, and platform scripts sustain NETH value to the given peg ratio between native ETH. The protocol’s underlying mechanism dynamically adjusts NETHER supply depending on the liquidity pool that is being used to convert native ETH to NETHER. An internal Balancer/Curve style stable swap pool is decided to be used as the liquidity pool of the platform, in contradistinction from other algorithmic rebase token projects.

The platform uses two different financial tools and a multi-token protocol with a seamless single-token bridge inside to provide a decentralized cross-layer liquidity solution, alongside sustained prolific revenue and peg ratio.

Nether uses liquidity pools and bonding mechanisms as familiar financial tools for DeFi users to sustain its prime purpose successfully and to attract a greater amount of contributors to the platform. While ease the process of onboarding between all L2s.

Nether’s multi-token structure is consisted of;

NETHER - platform’s synthetic meta-token that moves algorithmically to stay peg to ETH with 1/1 ratio.

nSHARE - platform’s share token that represented ownership and allocation amount of Nether’s revenue distribution if vested.

nBOND - platform’s bond token is a value acquiring tool while NETHER price is under the peg. It allows Nether to acquire its own liquidity by selling nBond at a discount in exchange for NETHER token itself.