Overview

What is NashPoint

NashPoint is a DeFi protocol designed for asset managers (Owners) to permissionlessly create and manage custom investment strategies onchain through Nodes. Each Node custodies user deposits and the underlying assets, following rules defined by the Node Owner. Owners specify parameters including the selection of underlying assets (components), reserve ratio, management fees, rebalancing frequency, and tracking error. Nodes can be offered as investment products to customers, who deposit assets through a standard ERC-4626 interface and withdraw asynchronously via an ERC-7540 interface. All user funds and investments are securely held within the Node contract.

Balance Sheet Management

NashPoint custodies user funds within secure smart contracts, supplemented by offchain balance sheet management services. These offchain services execute Node investment strategies defined by Owners, allocating user deposits into underlying assets based on specified target ratios and rebalance schedules. Withdrawals are processed similarly, either from the Node’s reserve or by redeeming from underlying investment assets, ensuring efficient liquidity management.

User Funds Redemptions

Each Node is linked to a unique Escrow contract created simultaneously with the Node. Users withdrawing funds submit a redemption request, transferring their shares to the Escrow contract, and the request status is marked as Pending. During defined rebalance windows, the protocol's Rebalancer fulfills these requests from either the Node's reserve or underlying investments. Once fulfilled, shares are burned, assets are transferred to the Escrow, and the request status updates from Pending to Claimable, allowing users to retrieve their assets. Shares and asset movements remain synchronized to ensure accurate accounting.

Reserve Management & Swing Pricing

NashPoint employs decentralized reserve management, where Node Owners may implement swing pricing mechanisms to maintain optimal reserve levels. Swing pricing dynamically adjusts the price of shares during deposits and withdrawals, incentivizing users to support healthy liquidity ratios. Withdrawals reducing reserves below target levels incur progressively higher costs, while deposits increasing reserve levels receive incentives in the form of improved pricing. The swing pricing mechanism operates within parameters set by the Node Owner, ensuring fairness and stability for all participants.