The Nemesis Flywheel

A Value Generation Ecosystem

At the heart of our project lies the Nemesis Flywheel, a meticulously designed financial mechanism engineered to create a continuous and self-reinforcing growth cycle. Every component is built to fuel the next, ensuring that generated value is constantly reinvested into the ecosystem and directed to our stakers.

Below, we detail the components and the mechanics of this system.

The Flywheel Components

Our ecosystem is supported by two main pillars: a dynamic profit engine and a consistent yield stabilizer.

1. The Profit Engine: Nemesis Trading Bot

This is the starting point and the primary fuel for our flywheel. The Nemesis Trading Bot operates with the project's private capital, executing advanced trading strategies to generate profit. The entire net profit from the bot's operations is used to power the next stage of the cycle.

2. The Yield Stabilizer: The veAERO Position

To ensure consistency and predictability, a core part of our strategy is to hold and grow a significant position in veAERO. This provides us with a yield that is not dependent on daily market performance. Even during weeks with lower trading volume from the bot, the yield generated from our veAERO position guarantees a constant revenue stream for the protocol stakers.

What are Aerodrome and veAERO? Aerodrome Finance is a leading Decentralized Exchange (DEX) on the Base network, operating as a "meta DEX." Its model allows projects to compete for liquidity on the platform. veAERO is Aerodrome's vote-escrowed governance token, obtained by locking the native AERO token. Holding veAERO grants voting power to direct the DEX's reward emissions, and in return, veAERO holders receive a share of the protocol's trading fees. It is a robust and consistent source of on-chain yield.

How the Flywheel Works: The Value Cycle

The flow of value is designed to be transparent and efficient, following four clear steps:

1. Profit Generation: The Nemesis Trading Bot executes its operations. All net profit is funneled to the next step.

2. Position Strengthening: The bot's profit is used entirely to acquire more veAERO, growing our position and, consequently, our governance power and future yield.

3. $NEMESIS Market Buy-back: The yield from our veAERO position, which is paid out weekly, is used to buy $NEMESIS tokens directly from the open market. This action creates constant and organic buying pressure on our native token.

4. Distribution to Stakers: The $NEMESIS tokens purchased from the market are then fully distributed as rewards to all stakers, directly rewarding our long-term supporters.

The Feedback Loop: Self-Reinforcing Growth

To close the loop and ensure exponential growth, the project itself will also stake $NEMESIS tokens, every Nemesis token allocated to staking was bought directly on the open market. The staking rewards earned by the project a small % will be reinvested into the operational capital of the Nemesis Trading Bot and the bigger % will be compounded to grow even more the staking positioin and to ensure less $nemesis tokens at circulation.

This creates a powerful feedback loop:

• More capital for the bot → Higher potential profits.

• Higher profits → More veAERO can be acquired.

• More veAERO → Greater yield to buy back $NEMESIS.

• More $NEMESIS distributed → Higher APY for stakers.

It is a system where each part strengthens the others, designed for long-term success and sustainability. We are confident that this financial architecture is the path to delivering real and consistent value to our community.