Overview

The Nestor Protocol smart contracts represent an audited suite of smart contracts available under the permissive MIT licence that facilitate compliant digital securities transfer on EVM-compatible blockchains including Avalanche C-Chain, Ethereum, and Polygon.

Key Extension

These contracts build upon the T-REX specification ERC-3643, incorporating specific features to operate private placements under MiFID II regulation.

Primary Capabilities

The platform enables:

• Creation of permissioned digital securities with programmable cash waterfalls for assets like private credit funds, ETFs, and infrastructure investments
• Issuance of permissioned deposit tokens denominated in multiple fiat currencies
• Payment and settlement infrastructure using deposit tokens
• Conversion functionality from ERC20 payment tokens to deposit tokens, supporting stablecoin risk management and FX conversion
• Automated fee collection across payment, settlement, and conversion operations
• FX swap functionality between NestorFundDepositTokens using spot and forward rates

Architecture Overview

The protocol operates as a decentralised system of privacy-protecting proofs and permissioned tokens with six structural pillars:

1. Identity Management — Role-based permissions via OnChainId
2. Compliance — Upgradable ERC-3643 modules governing token transfers
3. Nestor Tokens — ERC-3643 compliant token representations
4. Treasury Management — Mint, transfer, and burn functionality
5. Proof-of-Reserve — Independent currency attestations
6. Transfer Agency — Controlled token transfers with compliance enforcement and swap capabilities