Nestor FX Swaps

Nestor FX Swaps enable Investors to invest instantly, securely and risk-free at super low cost in multiple currencies.

The FX Swap contracts in the Nestor Protocol provide an instant/atomic swap of a currency pair at a quoted spot or forward rate.

Built on cash custody with G-SIB banking providers and FX partners in the EU, the list of supported currencies and currency pairs is maintained in the Nestor Institutional Deposit Tokens listing.

Nestor FX Swaps remove the complexity of investing in multi-currency, whilst providing ultimate flexibility and transparency of FX rates and settlement.

FX Swaps work by automating the treasury operations in an FX transaction:

1. Establishment of optional FX fees to be paid by the seller of currency A.
2. Utilization of the buying rate for currency Z in the swap. The rate utilized in the Nestor Protocol is obtained from FX partners; the Nestor team supports both spot and forward rates for FX Swaps offering clients ultimate flexibility and transparency.
3. Execution of the swap as a single atomic transaction whereby currency A and currency Z are burned and minted from/to two counterparties with the automatic collection of optional fees. This operation can only be directed by the PROTOCOL_TREASURY to avoid market manipulation of FX rates.

Deployed contract reference — example live FX Swap on Avalanche C-Chain (inherited deployment, originally under Frictionless namespace):

Live FX Swap: nxUSD sold for 5,000 nxEUR at spot rate

In this FX Swap, USD was sold for 5,000 EUR. The rate used was a spot rate. The swap and fee collection ran as a single atomic transaction and cost 0.80 USD to execute on the Avalanche C-Chain.