Preface

Nektar Network Token (NET) is an innovative liquidity and infrastructure market, designed to aggregate liquidity through decentralized asset managers (DAM) and provide users with efficient asset management solutions. With the rise of decentralized finance (DeFi), Nektar Network is committed to meeting various infrastructure and liquidity needs, providing participants with greater capital efficiency and potential returns.

What is Nektar Network?

Nektar Network is a multi-layered re-staking network built on the Ethereum mainnet. Formerly known as Diva protocol, which utilizes Distributed Validator Technology (DVT), a liquidity staking protocol. After the concept of re-staking was developed, Nektar Network expanded the Diva protocol and incorporated other components to create a comprehensive DeFi system. It is dedicated to optimizing the security architecture of the Ethereum mainnet and expanding various solutions.

Team members and financing background

According to Rootdata, Nektar Network secured a $3.5 million seed round of financing in 2023 when it was still under the Diva protocol, led by A&T Capital, with participation from Gnosis, Bankless, OKX Ventures, Metaweb, DCV Capital, Alphemy Capital, Very Early Ventures, Stake .vc, and other institutions.

A&T Capital also mentioned why they made this investment, mainly including three points:

• Ethereum staking market is huge: Assuming $ETH reaches a bull market price of $10000, with 50% of $ETH staked on the network, the annual revenue of the ETH staking market will exceed $3.5 billion. For service platforms like Diva, if the market’s annual revenue reaches this level, there is great growth potential.
• It is unhealthy for one protocol to monopolize the market in the DeFi field: If the staking service platform is monopolized by the Lido protocol, the decentralization and security of Ethereum nodes will be shaken, which is not what the Ethereum community and Lido want to see. This also allows the market to accommodate other competitors, not just one.
• Opportunities of New Technology: DVT, as one of the optimization technologies for Ethereum’s node operation, has just entered the market and is in the stage of market share distribution. It is a rare opportunity for Diva who uses new technology.

Operation Mechanism

Decentralized Asset Manager (DAM)

DAM is the core component of the Nektar Network platform, which allows users to manage and configure their assets in a decentralized manner. Through DAM, operators can access the best revenue opportunities and maximize the capital efficiency of existing infrastructure. In addition, DAM can incentivize network liquidity, attract new operators to the market, and enhance the loyalty of existing operators.

Asset Deposit and Profit

The principal can increase the potential return on their assets by depositing various tokens. This enables users to flexibly choose the investment strategy that best suits them and adjust their asset allocation according to market changes. At the same time, the manager is responsible for creating and running the DAM to ensure the stability and security of the platform.

Architecture

Nektar Network includes four core parts, each of which complements the others to achieve an efficient and secure blockchain ecosystem:

1. 客户端 (Stinger Client)
   Stinger Client is a P2P (peer-to-peer) validation network created by node operators and powered by Distributed Validation Technology (DVT). Through this network, the risk of data loss during data transmission is greatly reduced, ensuring network stability and data integrity.
2. Diva Staking Protocol
   Diva is an advanced Liquid Staking Protocol that bridges the gap between staking users and Ethereum mainnet validators. It provides a low barrier to entry, enabling more users to participate in staking and enjoy the benefits and network contributions of staking.
3. Nektar Network Restaking Protocol (Nektar Network再质押协议)
   The Nektar Network re-staking protocol is built on smart contracts, allowing users to re-stake liquidity staking tokens (LST) or native ETH assets from the Diva protocol. This functionality allows users to delegate assets to node operators and many active validation services (AVS), such as oracles and sidechains, and further earn additional returns, thereby improving asset utilization efficiency.
4. Marketplace (Nektar Network’s Marketplace)
   Nektar Network’s marketplace provides an efficient collaboration platform for protocols, applications, or service providers. These providers can quickly rent the security of the Ethereum mainnet by rewarding Nektar Network’s staking users, and quickly build their own businesses while significantly reducing the cost of maintaining security.

Token Distribution

The distribution of NET tokens reflects Nektar Network’s long-term commitment to the community. Each token distribution is constrained by an exercise schedule to maintain consistency between protocol and ecosystem participants, encouraging them to continue participating.

Allocation and redemption schedule

All tokens are allocated according to a structured cash-out schedule, including a linear cash-out period tailored to each category. This approach balances early liquidity needs with long-term sustainability. Key allocation and cash-out schedule:

Protocol Reserve

The protocol reserve accounts for 36.05% (360,500,000 NET tokens) of the total supply, aiming to incentivize and reward ecosystem participants. Allocation details:

Trading data

According to CoinGecko data, the market value of Nektar Network (NET) is about 1.8M, with a 24-hour trading volume of about 26,187.

2. According to CoinGecko, the largest trading market is Gate.io.

According to Etherscan data, the number of 3.NET holders is presented as 1,523.

4. According to Etherscan data, the number one holder of the top ten token holders holds about 44% of the NET quantity.

Risk Warning

Nekta Network project party will no longer update social media from December 9th, please pay attention to project risks.

Conclusion

Nektar Network needs more users to participate in order to strengthen its ecosystem. Although the operation mechanism is relatively complete, Nektar Network focuses on handling the needs of multiple AVS, while Diva focuses on Ethereum node verification. However, perhaps more partners need to join the ecosystem in order to have a place in the staking track. The development of DVT technology can be said to have rewritten the history of Ethereum, assisting EVM in becoming more decentralized while enhancing security and maintaining autonomous flexibility. It is one of the best technologies for ecosystem development. Also, thanks to the participation of Lido, the market has now become more mainstream, and it is believed that it will become more mature in the future.