For Liquidity Providers

$NEST rewards are emitted every epoch (1 week) on Thursday at 00:00 UTC to liquidity providers in nest pools. Epoch 1 will start with 20,000,000 $NEST and for the first 12 epochs, $NEST emitted increases by 1.5% per epoch. This increase will distribute supply to new LPs to accelerate liquidity deposits, trading volume and revenue generation.

The total amount of $NEST allocated for each epoch is proportionally split across all pools that receive votes from $veNEST holders. Following this, the protocol enters programmed maturation where emissions decline by 1% each epoch, providing a steady decline in inflation whilst sustaining a highly liquid trading hub.

Fair Emissions Distribution

nest monitors liquidity positions and calculates the amount of emissions for distribution based on the total amount allocated for that epoch, for each pool, and for each provider. For liquidity providers in classic liquidity pools, $NEST is claimable in real-time and is proportional to the size of each position. For liquidity providers in concentrated liquidity pools, $NEST can be claimed every minute. The protocol algorithm performs randomised virtual swaps, removing the possibility of just-in-time liquidity attacks where providers can opportunistically add and remove 1-tick positions to avoid actual swaps and impermanent loss, whilst earning maximum rewards. This ensures that nest will distribute maximum rewards to liquidity providers who remain deposited and committed to providing liquid trading conditions. Liquidity providers can claim $NEST rewards via the dashboard.

Smart Pools

Liquidity providers on nest concentrated pools will benefit from automated management from Steer Protocol. Unlike manual concentrated positions that require constant price range adjustments and monitoring, Smart Pools automate liquidity management through algorithms that dynamically rebalance positions. This lets depositors earn $NEST rewards while the system minimises rebalancing lag and impermanent loss, transforming complex position management into a simple deposit-and-earn experience. Each vault uses historical data to optimise range selection and rebalancing, balancing rewards potential with impermanent loss protection. For maximum rewards, manual LPing with tighter ranges will perform better. We will continuously monitor and optimise vault performance over time to provide the best possible LP experience on HyperEVM. See current vault settings:

HYPE/USD

• "Smart & Steady" - Automatically adjusts your liquidity position with a 14% range as HYPE moves, keeping you in range without manual intervention. The stable USD pairing reduces impermanent loss risk while balancing concentration with coverage for consistent returns.

HYPE/UETH

• "Adaptive Protection" - Maintains a wider 22% range to handle both tokens moving independently, protecting against impermanent loss when ETH and HYPE diverge. The strategy ensures your liquidity stays active during volatile periods while maximising returns during stable markets.

HYPE/UBTC

• "Set & Forget" - Bitcoin's lower volatility paired with HYPE creates a manageable 16% range that requires less frequent rebalancing. This reduces impermanent loss while maintaining good position concentration for optimal returns.

HYPE/UPUMP + KNTQ Pools

• "Volatility Surfer" - Wide-range strategy using a ~40% range designed for higher volatility. Stays in range during price swings when tighter positions would be left behind, capturing returns from high-volume trading.

USDH/USDT0 & USDH/USDC

• "Zero Maintenance" - Static positions requiring no rebalancing, with 80 tick spaces creating a 0.8% range of deep liquidity around the $1.00 peg. Multi-position architecture maximises returns from stable swaps with zero operational rebalancing.

kHYPE/HYPE

• "LST Precision" - Tight 50-tick range (0.5%) optimised for liquid staking token pairs. Since kHYPE maintains 1:1 parity (non-rebasing), the narrow range maximises returns while the static strategy eliminates rebalancing.

Dynamic Adjustment

Market conditions and demand directly affect fee and volume generation. To provide a more sustainable and responsive platform, predetermined $NEST emissions for each epoch can be modified by up to ±25%. In general, the protocol applies the following framework: 1) To sustain liquidity provider $NEST emissions above baseline fees generated.

2) To increase $NEST emissions where there is a multi-epoch trend of revenues exceeding emissions.

3) To decrease $NEST emissions where there is a multi-epoch trend of emissions exceeding revenues.

Given the complexity of market dynamics, the intention of this system is not to over-engineer with excessive changes but to steer the protocol towards sustainable operations, whilst ensuring that providers are rewarded above the baseline fee rate.