Nash Exchange has been the winner of the Twitter poll related to DEX. We consider that there are different levels of decentralisation for DEXes, from the fully decentralised exchange, where everything is indeed decentralised: non custodial wallets, no KYC, order books, matching engine, fully open source code, etc., to the least decentralised where only one component is.
Nash fits our definition of being a DEX because it is a non custodial exchange, meaning that solely you have access to your funds in the wallet you have created to trade on the exchange. Even if the exchange goes down you can still recover your funds.
What is Nash Exchange?
Nash can be seen as a hybrid exchange, fully regulated by ESMA (European regulator), which combines the trading experience of a centralised exchange (CEX) with DEXes’ non custodial wallets, meaning user funds are always in your hands.
Nash Exchange token, the NEX, is based on NEO blockchain but the trading platform is not powered by NEO Blockchain. Indeed, the matching engine is a distributed system but is ran off chain with five nodes and by Nash itself.
The exchange is cross chain ready, meaning you can swap BTC against ETH. No need to have wrapped BTC and so on, you use the original blockchain. They use secure multiparty computation (MPC technology) to secure cross chain swaps.
Nash is not only an exchange, they also plan to release a payment system: Nash pay. It will be used to make payments with cryptocurrencies, directly from person to person. We view Nash pay as a possible competitor to Coinbase Commerce, mainly for European Area. As already regulated by ESMA, it does make sense to release a fully compliant crypto payment system as well.
What is the NEX token?
NEX token can be seen as a share in the exchange, you buy NEX to stake them and you will receive part of the fees generated by the trading platform. You need to lock your NEX for a period of at least 1 month to a maximum of 2 years. The longer the locking period, the higher the percentage of fees you get.
If you lock your NEX tokens for a month, you get 25% of the fees generated by the exchange. If you lock it for two years, you get 75%. But you have to know that there is no turning back, once you lock your tokens, you cannot undo the action before the end date.
The investment analysis of the NEX token is available for our subscribers, here. We provide an in depth research and valuation of the token. Based on current valuation of other DEXes and CEXes, we determine if NEX’s price is under or overvalued based on current trading volume and fees.
What we like
Nash Exchange is an interesting exchange project taking into account the following points:
User friendly: the trading experience is great and is on par with the other well known CEX such as Binance or Kraken.
Non custodial wallet: you are always in control of your money.
Fully compliant and registered in Europe: you know that the team behind is serious and won’t exit scam with your money.
Transparent: The Nash Exchange has started to open source the code of their platform, we do like it.
BTC/ETH pairs: original cross chain swaps is a nice feature for a non custodial exchange.
Mobile friendly: the app is simple and useful.
Fees: on par with other exchanges, no fees for make order and 0.25% for taker, with lower percentage if you trade more.
No KYC for trading volume under $1000 per day.
The Nash community: Nash Exchange has been successful of building a Hugh community around the project, 68K followers on Twitter is a lot and they are super active. Twitter poll was won with 56% and more than 500 votes for Nash. Community plays an important role in the success of crypto projects.
What we don’t like
There is no on ramp solution to deposit fiat currencies to the exchange. This is a show stopper for wide adoption as you still need to use another exchange to deposit fiat and buy cryptocurrencies.
As a solution, Nash has partnered with third party providers. It is a good start but we would not use the third party partner listed below as fees are too high. Why pay 2.5% fees when you can deposit money for free on other exchanges?
However we see that it has been at least planned by the team.
To be fully compliant, the team has taken strong measures to enforce rules, so there is full KYC, you cannot use a VPN to connect to the exchange and they openly question your location if your sign up from another country than your home residency, etc. In our opinion, these rules are too strict.
Nash is an innovative exchange which takes the best parts of CEXes related to trading experience and combines it with the non custodial feature of DEXes. The exchange is user friendly and mobile ready. In terms of features, we do like the cross chain swaps of BTC and ETH secured via MPC technology. Going forward, we would like that Nash implements a full mechanism of fiat deposits in the trading platform, this would make it a standalone exchange.
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