Overview
Synopsis#
Nebula is a protocol 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 and possess two unique properties:
Programmable, updates for target weight allocation
Clusters can quickly adjust their target allocations as frequently as every block, to actively steer their inventory composition to stay course or pivot according to its unique strategy / narrative. There are no restrictions on the possible logic used, and no limitations to what stories clusters can potentially tell.
Decentralized, continuous rebalancing
Whereas traditional ETFs are periodically balanced by a centralized entity, clusters are continuously kept in balance with their target through the cumulative deposit and withdrawal activity from random, individual actors across the network performing rebalancing operations. Clusters need no active management and are powered from organic activity by Nebula users.
Clusters enable users to passively invest in an evolving narrative and algorithmic strategies by simply holding its cluster token -- a redeemable share of a cluster's underlying inventory.
The Nebula Tokens (NEB) is the protocol's governance token and primary form of incentive. By rewarding users for actions such as rebalancing clusters, providing liquidity and staking LP tokens, or locking NEB for voting power, etc. Nebula fulfills 3 core imperatives:
- clusters remain balanced, never drifting beyond a tolerance from target allocation
- the cluster market maintains sufficient liquidity and efficiently priced
- the protocol & cluster ecosystem develop and evolve with governance participation
Nebula drives ecosystem integration and expansion through campaigns: special events decided and funded by governance with new opportunities to earn NEB tokens and other potential rewards. Campaigns are a future-proof way to promote actions that combine Nebula with other project in the Terra, Solana, Ethereum or BSC ecosystems, encouraging cross-pollination between protocols and composability across blockchains.
Nebula opens a new universe of possibilities for decentralized dynamic investments: powerfully expressive, openly accessible, and fundamentally democratic. The protocol relies on community effort not only for operation but for direction and governance: only resolutions by collaborative consensus determine the shape of the protocol and its future trajectory.
Nebula is a project maintained and completely governed by its community of NEB token stakers, who lock their tokens and gain voting privileges and influence proportional to their locked time. Nebula is initially supported by its core development team, which oversees its path toward complete autonomy by the community. The Nebula team holds no admin keys.
Tokens#
There are several tokens involved in Nebula Protocol with different functions:
| Name | Abbrev. | Type | Description |
|---|---|---|---|
| TerraUSD | UST | Native | Stablecoin, primarily used for trading and providing liquidity to Cluster Tokens pools |
| Cluster Token | CT | CW20 | Tradable share of a Cluster's inventory, decentralized analog of ETF |
| LP Token | LP | CW20 | Earned by providing liquidity to CT-UST pairs, can be staked to earn LP rewards |
| Nebula Token | NEB | CW20 | Governance token and mechanism incentive |