Internal Research Publications
Analytical notes on the mechanisms underlying NIL-0, published internally by NIL Research. These are not affiliated with any external academic institution.
Obligation Compression in Directed Settlement Graphs
We model a settlement network as a directed graph in which vertices represent participants and edges represent unresolved obligations. We describe a class of compression procedures that identify cyclic structure within the graph and cancel mutually offsetting obligations prior to any capital movement, and discuss the conditions under which residual exposure is minimized.
Capital Displacement Minimization
We define the Capital Displacement Ratio (CDR) as a measure of how much physical capital movement a settlement network requires relative to the gross economic obligations it resolves, and examine how corridor topology, epoch length, and domain liquidity affect it.
Local Liquidity and Global Finality
This paper examines how obligations can be satisfied using liquidity already present near a recipient, decoupling the moment of recipient-side finality from the moment, if any, at which corresponding capital is displaced elsewhere in the network.
Failure Propagation Across Settlement Domains
We characterize the ways in which a failure at one point in the obligation network — an unavailable execution endpoint, an unroutable corridor, a rebalancing shortfall — can and cannot propagate to other participants, and describe the failure domains NIL exposes at the protocol level.
Temporal Netting Efficiency
We study the relationship between netting epoch length and realized compression, and describe the tradeoff between settlement latency and capital efficiency that epoch length induces.