Starting today, all users will be able to begin quote mining for nYFI, to create a global price variable for the YFI/ETH trading pair.
There is now an official YFI/ETH pair on NEST where the users can participate in quote mining to earn nYFI tokens. Quote mining is a form of liquidity mining, where participants stake the assets with a quoted price (in this case, YFI and ETH) in Nest’s smart contract for 25 blocks on the Ethereum network (about five minutes) to earn corresponding nTokens(nYFI).
NEST is a Protocol designed to create an permissionless system of Price Oracles
How are price oracles created?
Any ERC20 tokens can create a global price oracle with NEST. Anyone can create a price oracle with a bidding contract and staking NEST. Once a price oracle is initialized, miners and verifiers are rewarded with nTokens and ETH for participating in the network.
Taking YFI for example, a user would:
Now anyone can participate in quote mining by staking a pool of YFI/ETH. Participants are rewarded with nYFI tokens.
What do participants of the network receive?
Read more about nYFI token in detail here: https://medium.com/nest-consensus-labs/nyfi-price-oracle-for-yfi-tokens-on-the-nest-protocol-f40473d536de