diff --git a/README.md b/README.md
index 78be6f7..9bd4f0d 100644
--- a/README.md
+++ b/README.md
@@ -13,7 +13,35 @@ Exit the prompt with `Ctrl-C` (or however else you kill a program in your termin
 
 Bound variables will be printed followed by a number representing the number of binders
 between it and its definition for disambiguation.
-This is not guaranteed not to capture free variables.
+
+## Differences from the traditional lambda calculus
+This version of the lambda calculus is completely compatible
+with the traditional lambda calculus, but features a few extensions.
+
+### Nullary applications
+In any binary application `(f x)`, the `f` is a function and the `x` is a variable.
+Applications are left-associative, meaning `(f x y)` equals `((f x) y)`.
+Any term `x` may be expanded to an application `(id x)`.
+Working backwards, we have `(f x y)` equals `(((id f) x) y)`.
+Thus we may reasonably say that `() = id`
+and thus that `(f x y)` equals `(((() f) x) y)`,
+and that `(x)` equals `(() x)`, which reduces to just `x`.
+
+### Nullary functions and generalized eta reductions
+We can apply a similar argument to the function syntax.
+`(\x y z. E)` is the same as `(\x.(\y.(\z.E)))` because lambda is right-associative.
+Any term `x` may be eta-expanded into a lambda `(\y. ((() x) y))`.
+Working backwards, we have `(\x. (() x))` eta-reducing to `()`.
+Therefore, the identity function eta-reduces to just `()`.
+
+Again similarly we have the nulladic lambda syntax `(\.E)`
+which trivially beta-reduces to `E`.
+
+I also take any series of ordered applications
+`(\v v1 v2 ... vn. v:n v2:(n-1) ... v(n-1):1 vn:0)`
+to eta-reduce to `()` (including `()` itself and, trivially, `(\x. x)`).
+
+### Nullary functions
 
 ### Examples
 ```
@@ -28,7 +56,7 @@ y
 ## Syntax
 * Variables are alphanumeric, beginning with a letter.
 * Applications are left-associative, and parentheses are not necessary.
-* Lambdas are represented by `\\`, bind as far right as possible, and parentheses are not necessary.
+* Lambdas are represented by `\`, bind as far right as possible, and parentheses are not necessary.
 
 ### Examples
 * Variables: `x`, `abc`, `D`, `fooBar`, `f10`
diff --git a/src/UntypedLambdaCalculus.hs b/src/UntypedLambdaCalculus.hs
index 37f1a92..9a1478d 100644
--- a/src/UntypedLambdaCalculus.hs
+++ b/src/UntypedLambdaCalculus.hs
@@ -1,11 +1,12 @@
 {-# LANGUAGE TemplateHaskell, TypeFamilies, DeriveFunctor, DeriveFoldable, DeriveTraversable, MultiWayIf #-}
-module UntypedLambdaCalculus (Expr (Free, Var, Lam, App), ReaderAlg, eval, cataReader) where
+module UntypedLambdaCalculus (Expr (Free, Var, Lam, App, Nil), ReaderAlg, eval, cataReader) where
 
 import Control.Monad.Reader (Reader, runReader, local, reader, ask)
-import Data.Bifunctor (bimap)
+import Data.Foldable (fold)
 import Data.Functor ((<&>))
-import Data.Functor.Foldable (Base, Recursive, cata)
+import Data.Functor.Foldable (Base, Recursive, cata, embed, project)
 import Data.Functor.Foldable.TH (makeBaseFunctor)
+import Data.Monoid (Any (Any, getAny))
 
 -- | A lambda calculus expression where variables are identified
 -- | by their distance from their binding site (De Bruijn indices).
@@ -13,6 +14,7 @@ data Expr = Free String
           | Var Int
           | Lam String Expr
           | App Expr Expr
+          | Nil
 
 makeBaseFunctor ''Expr
 
@@ -25,55 +27,75 @@ cataReader f initialState x = runReader (cata f x) initialState
 instance Show Expr where
   show = cataReader alg []
     where alg :: ReaderAlg ExprF [String] String
-          alg (FreeF v) = return v
-          alg (VarF  v) = reader (\vars -> vars !! v ++ ':' : show v)
-          alg (LamF  v e) = do
+          alg (FreeF v)    = return v
+          alg (VarF  i)    = reader (\vars -> vars !! i ++ ':' : show i)
+          alg (LamF v e) = do
             body <- local (v :) e
             return $ "(\\" ++ v ++ ". " ++ body ++ ")"
           alg (AppF f' x') = do
             f <- f'
             x <- x'
             return $ "(" ++ f ++ " " ++ x ++ ")"
+          alg NilF = return "()"
 
--- | Determine whether the variable bound by a lambda expression is used in its body.
--- | This is used in eta reduction, where `(\x. f x)` reduces to `f` when `x` is not bound in `f`.
+-- | Is the innermost bound variable of this subexpression (`Var 0`) used in its body?
+-- | For example: in `\x. a:1 x:0 b:2`, `x:0` is bound in `a:1 x:0 b:2`.
+-- | On the other hand, in `\x. a:3 b:2 c:1`, it is not.
+bound :: Expr -> Bool
+bound = getAny . cataReader alg 0
+  where alg :: ReaderAlg ExprF Int Any
+        alg (VarF index) = reader (Any . (== index))
+        alg (LamF _ e)   = local (+ 1) e
+        alg x            = fold <$> sequenceA x
+
+-- | Opposite of `bound`.
 unbound :: Expr -> Bool
-unbound = cataReader alg 0
-  where alg :: ReaderAlg ExprF Int Bool
-        alg (FreeF _)  = return True
-        alg (VarF  v)  = reader (/= v)
-        alg (AppF f x) = (&&) <$> f <*> x
-        alg (LamF _ e) = local (+ 1) e
+unbound = not . bound
 
 -- | When we bind a new variable, we enter a new scope.
 -- | Since variables are identified by their distance from their binder,
 -- | we must increment them to account for the incremented distance,
 -- | thus embedding them into the new expression.
-embed :: Expr -> Expr
-embed (Var v)   = Var $ v + 1
-embed (App f x) = App (embed f) (embed x)
-embed x         = x
+liftExpr :: Int -> Expr -> Expr
+liftExpr n (Var i)     = Var $ i + n
+liftExpr _ o@(Lam _ _) = o
+liftExpr n x           = embed $ fmap (liftExpr n) $ project x
 
 subst :: Expr -> Expr -> Expr
-subst val = cataReader alg (0, val)
-  where alg :: ReaderAlg ExprF (Int, Expr) Expr
-        alg (FreeF x)  = return $ Free x
-        alg (VarF x)   = ask <&> \(x', value) -> if
-          | x == x'   -> value
-          | x >  x'   -> Var $ x - 1
-          | otherwise -> Var x
-        alg (AppF f x) = App <$> f <*> x
-        alg (LamF v e) = Lam v <$> local (bimap (+ 1) embed) e 
+subst val = cataReader alg 0
+  where alg :: ReaderAlg ExprF Int Expr
+        alg (VarF i)   = ask <&> \bindingDepth -> if
+          | i == bindingDepth -> liftExpr bindingDepth val
+          | i >  bindingDepth -> Var $ i - 1
+          | otherwise -> Var i
+        alg (LamF v e) = Lam v <$> local (+ 1) e
+        alg x = embed <$> sequence x
+
+-- | Generalized eta reduction. I (almost certainly re-)invented it myself.
+etaReduce :: Expr -> Expr
+-- Degenerate case
+-- The identity function reduces to the syntactic identity, `Nil`.
+etaReduce (Lam _ (Var 0)) = Nil
+-- `\x. f x -> f` if `x` is not bound in `f`.
+etaReduce o@(Lam _ (App f (Var 0)))
+  | unbound f = eval $ subst undefined f
+  | otherwise = o
+-- `\x y. f y -> \x. f` if `y` is not bound in `f`;
+-- the resultant term may itself be eta-reducible.
+etaReduce (Lam v e'@(Lam _ _)) = case etaReduce e' of
+  e@(Lam _ _) -> Lam v e
+  e -> etaReduce $ Lam v e
+etaReduce x = x
+
+betaReduce :: Expr -> Expr
+betaReduce (App f' x) = case eval f' of
+  Lam _ e -> eval $ subst x e
+  Nil -> eval x
+  f -> App f $ eval x
+betaReduce x = x
 
 -- | Evaluate an expression to normal form.
 eval :: Expr -> Expr
-eval (App f' x) = case eval f' of
-  -- Beta reduction.
-  Lam _ e -> eval $ subst x e
-  f -> App f (eval x)
-eval o@(Lam _ (App f (Var 0)))
-  -- Eta reduction. We know that `0` is not bound in `f`,
-  -- so we can simply substitute it for undefined.
-  | unbound f = eval $ subst undefined f
-  | otherwise = o
+eval a@(App _ _) = betaReduce a
+eval l@(Lam _ _) = etaReduce l
 eval o = o
diff --git a/src/UntypedLambdaCalculus/Parser.hs b/src/UntypedLambdaCalculus/Parser.hs
index 19931be..e8a5eb2 100644
--- a/src/UntypedLambdaCalculus/Parser.hs
+++ b/src/UntypedLambdaCalculus/Parser.hs
@@ -3,15 +3,15 @@ module UntypedLambdaCalculus.Parser (parseExpr) where
 
 import Control.Applicative (liftA2)
 import Control.Monad.Reader (local, asks)
-import Data.List (foldl1', elemIndex)
+import Data.List (foldl', elemIndex)
 import Data.Functor.Foldable.TH (makeBaseFunctor)
-import Text.Parsec (SourceName, ParseError, (<|>), many, sepBy1, letter, alphaNum, char, between, spaces, parse)
+import Text.Parsec (SourceName, ParseError, (<|>), many, sepBy, letter, alphaNum, char, between, spaces, parse)
 import Text.Parsec.String (Parser)
-import UntypedLambdaCalculus (Expr (Free, Var, Lam, App), ReaderAlg, cataReader)
+import UntypedLambdaCalculus (Expr (Free, Var, Lam, App, Nil), ReaderAlg, cataReader)
 
 data Ast = AstVar String
-         | AstLam String Ast
-         | AstApp Ast Ast
+         | AstLam [String] Ast
+         | AstApp [Ast]
 
 makeBaseFunctor ''Ast
 
@@ -30,14 +30,14 @@ parens = between (char '(') (char ')')
 -- | A lambda expression.
 lam :: Parser Ast
 lam = do
-  vars <- between (char '\\') (char '.') $ name `sepBy1` spaces
+  vars <- between (char '\\') (char '.') $ name `sepBy` spaces
   spaces
   body <- app
-  return $ foldr AstLam body vars
+  return $ AstLam vars body
 
 -- | An application expression.
 app :: Parser Ast
-app = foldl1' AstApp <$> safeExpr `sepBy1` spaces
+app = AstApp <$> safeExpr `sepBy` spaces
 
 -- | An expression, but where applications must be surrounded by parentheses,
 -- | to avoid ambiguity (infinite recursion on `app` in the case where the first
@@ -54,8 +54,9 @@ toExpr = cataReader alg []
       return $ case bindingSite of
         Just index -> Var index
         Nothing    -> Free varName
-    alg (AstLamF varName body) = Lam varName <$> local (varName :) body
-    alg (AstAppF f x) = App <$> f <*>x
+    alg (AstLamF vars body) = foldr (\v e -> Lam v <$> local (v :) e) body vars
+    alg (AstAppF [e]) = e
+    alg (AstAppF es) = foldl' App Nil <$> sequenceA es
 
 -- | Since applications do not require parentheses and can contain only a single item,
 -- | the `app` parser is sufficient to parse any expression at all.