nest AMM

nest AMM is a HyperEVM exchange with classic constant-product and stable-swap pools plus Algebra concentrated-liquidity pools. LPs earn NEST emissions but retain paired-asset inventory risk; automated Steer ranges rebalance that exposure rather than remove impermanent loss. DefiLlama measured about $171,000 on 2026-08-16. The rejection remains categorical and reopens only for a separately underwritable product without liquidity-pair exposure.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Mechanism applicability

nest offers volatile constant-product, stable-swap and Algebra Integral concentrated pools. Its LP documentation expressly discusses impermanent loss and says tighter manual ranges can earn more rewards. Vote-directed NEST emissions compensate the LP; they do not eliminate the adverse asset-ratio change when paired prices diverge.

Control and dependency applicability

veNEST lockers vote weekly to direct pool emissions. The published deployment includes a proxy admin and upgradeable gauge, voter and fee-vault implementations; the security page says a 3-of-5 team multisig controls core functions. Those controls add dependency risk without changing the LP classification.

Exit applicability

An LP can remove a classic or concentrated position subject to the pool’s current token mix, range state and onchain execution. Smart Pools dynamically rebalance ranges and aim to reduce rebalancing lag and impermanent loss, but withdrawal still realizes the assets held by the position rather than restoring the depositor’s original quantities.

Why the dossier still applies

DefiLlama measured $170,782 on Hyperliquid L1 on 2026-08-16. Size is not the basis: every documented nest liquidity product remains a paired-asset AMM position, and governance rewards do not cure inventory divergence. Reopen only if nest ships a separately identifiable yield product whose return does not require bearing AMM liquidity-pair exposure.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• nest Docs — AMM architecture · primary · accessed 2026-08-16
  Supports: Algebra concentrated liquidity, range-based liquidity, AMM accounting
• nest Docs — LPing on nest · primary · accessed 2026-08-16
  Supports: classic pools, concentrated pools, vote-directed NEST emissions
• nest Docs — impermanent loss · primary · accessed 2026-08-16
  Supports: paired-asset divergence, impermanent loss, range and emission dependency
• nest Docs — remove liquidity · primary · accessed 2026-08-16
  Supports: partial and full withdrawal, two-token classic exit, one-sided CLAMM exit
• nest Docs — deployed contracts · primary · accessed 2026-08-16
  Supports: proxy-admin deployment, upgradeable gauges and voter, HyperEVM contracts
• nest Docs — security model · primary · accessed 2026-08-16
  Supports: 3-of-5 core multisig, separate treasury multisig, admin-control boundary
• nest Docs — audit record · primary · accessed 2026-08-16
  Supports: BailSec review, inherited Fenix reviews, Algebra audit record
• DefiLlama — nest AMM survey record · secondary · accessed 2026-08-16
  Supports: $170,782 TVL, Hyperliquid L1 perimeter, DEX category

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.