How Nexus Works
Nexus does not exchange directly, instead it allows buyer and seller to utilizes an escrow smart contract on the Algorand blockchain.
Trust is a factor in any trade, especially online trades.
Using the Nexus contract both users will now provide collateral before the exchange occurs, proving their willingness to successfully complete the exchange.
Once the exchange occurs both parties go into the Nexus App, mark the trade complete and their collateral is returned to them less a fee of 1% or 2%, depending on the token used as collateral.
The Nexus Process:
Two users find each other via our Discord, or any other website. Those two users agree to a price for the transaction.
Once the two users have agreed upon a price and collateral, they navigate to the Dapp (app.nexus.com) and connect their Algorand Wallet. Either user initiates a new trade in the Nexus App to the other users wallet. The other user gets the proposal, reviews that it was the agreed upon amount and then signs the proposal which sends their collateral to the smart contract. Both users receive a unique collateral token that can only be used in the wallet it was created in, it is useless and valueless in any other wallet.
Once the trade is successful, The users log back into the Nexus App and mark the trade complete. This automatically sends the collateral token back to the Smart contract. When the smart contract receives both tokens from both users, it will automatically release the collateral back to both parties, less a 1% or 2% fee.
Note: The Algorand wallet gives an extra warning when closing that the transaction cannot be undone.
Both users have 60 days from the initial deposit to the contract to complete the trade. If the trade is not successful then the collateral is not sent to either user until they both agree that it is.
This process ensures that both users want to see the trade happen. When both users are at risk of losing the initial collateral, there is little room for bad acting.
Nexus charges a 1% fee for using the contract with GP and a 2% fee for ALGO, GEMS, USDC & STBL.
This gives the users incentive to use (GP) over any other asset.
The minimum amount to use the Nexus app is $20
Nexus will set a fee cap to remain competitive at $2,000.