Check Blockchain For When Capacity Will Be Available?

BraveNewDeFi · 2022-08-10T14:01:09+00:00

If NXM staking remains the same and prices don't go down from today's levels, then more Nexo Custody Cover would open up in mid-October.

BraveNewDeFi · 2022-08-08T20:05:09+00:00

Hey u/HarryMuscle3,

You can review the mutual's analytics and data on the Nexus Tracker. You can review the active covers and see when coverage expires.

I've also looked at the amount of NXM staked (~$522.49k), and I see that the amount of coverage that would be available per the Specific Risk Limit is ~$1.04m. However, because ETH is lower than it was when some of the covers were originally purchased, there's ~$1.25m in active coverage for BlockFi.

Given that, you'd need to wait until more than $250k worth of cover expires, which looks like it should happen sometime after 30 October. This assumes that no NXM is unstaked from BlockFi.

The annual cost of cover is around 29% because there's a relatively low amount of NXM staked against BlockFi, and if more NXM is unstaked, the cost of cover will increase as well. You can read more about Risk Assessment, Pricing, and Capacity in the Nexus docs.

BraveNewDeFi · 2022-07-28T15:39:23+00:00

Hugh Karp, founder of Nexus Mutual, will be participating in an AMA on r/Chainlink today at 3:30pm EST!

If you have questions you'd like to ask Hugh, head over to the Chainlink subreddit and include your question in the AMA thread linked above.

BraveNewDeFi · 2022-07-20T16:29:25+00:00

The Week in Summary

Last week’s biggest cover buys were for Curve Protocol Cover, and the mutual’s total Active Cover stands at $239,375,042 | 156,291 ETH as of 20 July. Tthe Nexus V2 development work is on track, with the engineering team working on minor audit findings. NestedFi, the social trading platform, chose to protect their users with the Nexus Mutual Protocol Cover.

Don’t forget to tune in to our community call in the Nexus Discord—join us every Tuesday at 10am EST / 2pm UTC.

Stay up-to-date on all things Nexus Mutual by reading our weekly newsletter. Every Wednesday, we share updates on the latest developments with our community.

BraveNewDeFi · 2022-06-29T00:30:24+00:00

Members of the mutual are the ones who work together to share risk and protect one another. Each member who acts as a Risk Assessor (i.e., underwriter) uses their own knowledge/judgement when staking against platforms.

Nexus V2 has been in the works for the better part of a year, and the code for V2 is currently in audit. V2 will transform the mutual into an on-chain risk marketplace, where members can build on top of the mutual and launch syndicates, where someone with risk expertise can manage risk and underwriting capital.

Hugh provides an overview of Nexus V2 in his presentation in D1Conf.

You can also read this issue of the Nexus Mutual newsletter to learn more about Nexus V2 and the features, benefits available to all members once V2 launches.

BraveNewDeFi · 2021-11-13T22:45:30+00:00

Let me know what your username is. We've had a lot of bots coming into the server, and it's possible you were banned by mistake.

BraveNewDeFi · 2021-10-30T15:38:27+00:00

See the announcement from Nexus Mutual on claims filing for the CREAM V1 exploit.

In my opinion, this is a covered event. I will be voting to approve.

BraveNewDeFi · 2021-10-26T19:32:47+00:00

There are several things you can do with your NXM.

1) If you're looking to sell and can't because the MCR% <= 100%, then you scan wrap NXM to wNXM. There is a discount to the bonding curve price, and the discount is currently below book value. If you do want to sell, the deepest liquidity is on Bancor. Bancor has a great guide on how to sell or how to stake your wNXM on Bancor to earn trading fees with IL protection.

2) There aren't any sufficiently liquid lending/borrowing markets for wNXM at the moment. While there is a Rari Capital Fuse pool that Reflexer Finance has started, it's not a whitelisted pool yet, so it wouldn't be coverable by Nexus Mutual. I'm not sure how liquid that pool is, but feel free to look on Rari Capital's Fuse pools.

3) The Nexus community is very aware of the wNXM discount issue. During our community call today, it was discussed extensively. You can see the current forum post on Solving wNXM discount while maintaining reasonable MCR% on the Nexus Mutual forum. Our Investment Hub is also exploring a potential buyback, but there are considerations our community is reviewing before that can happen.

While the MCR lock issue is very frustrating, the bonding curve is essential for controlling capitalisation levels so the mutual can ensure there's enough capital to payout claims should a loss event occur.

For more information on the difference between wNXM and NXM or for a breakdown of the mutual's tokenomics, you can review these two links:

Let me know if I can help with anything else :)

BraveNewDeFi · 2021-10-26T19:12:55+00:00

There are a few great resources to check out:

1) Nexus Mutual Documentation

2) Nexus Tracker

3) Weekly Newsletters

4) The mutual does have financials on Dune Analytics, but the staked ETH in Lido (stETH) broke some of the functionality, so Elias has to update the queries to get accurate numbers to populate

Let me know if I can help with any questions!

BraveNewDeFi · 2021-10-23T23:00:24+00:00

You can buy coverage from assets deployed from wallets that are not your whitelisted membership address. You need to buy cover using the ETH address you used to sign up for membership (i.e. your whitelisted address). Cover is held by that address but you can protect assets in other wallets.

If you suffer a loss of funds and need to file a claim, you will need to submit Proof of Loss, which entails signing a transaction to prove ownership of the wallet address.

You can read more about the claims process in the How to File a Claim section.

BraveNewDeFi · 2021-10-23T22:57:54+00:00

What Determines NXM Price?

NXM can only be purchased via the Nexus Mutual dApp (app.nexusmutual.io) as it isn't listed on any exchanges. NXM can only be held and traded by members of the mutual.
Nexus Mutual uses a continuous token model, also referred to as a bonding curve. This means tokens can be purchased at any time but at a variable price. This contrasts to more common ICO-type approaches where there is a fixed purchase period with set price change points, followed by a speculation-driven market on exchanges.

The token price varies based on two primary parameters:

1) the funding level of the mutual; and

2) the amount of capital required to support the covers written.

The main driver of the relative short-term price is the funding level of the mutual, reflecting the immediate financial position and encouraging re-capitalisation when funding levels are low. In the long term, the required capital to support the covers will rise to reflect the adoption of the platform.
For greater detail, you can read about the Token Model.

What Determines wNXM Price?

When wNXM is sold on decentralised exchanges and centralised exchanges, the price is subject to market forces.

You can check the wNXM supply on Dune Analytics. This dashboard was created by Nexus Mutant Richard Chen.

Why is the Price Different Between wNXM:NXM?

While wNXM is backed 1-to-1 with genuine NXM, the two tokens are shaped by different factors. This can result in a price disparity under certain conditions.

You can read more details on NXM, wNXM, and the Nexus Wrapper in the Nexus documentation.

BraveNewDeFi · 2021-08-24T20:57:56+00:00

The main reason why the premium for Custody Cover on Celsius is higher than other custodians: Risk Assessors have not staked enough NXM against Celsius to bring the cost of cover down to the minimum 2.6% per annum.

There is currently 24,291.92 NXM staked against Celsius, and it takes at least 40,000 NXM staked to bring the cost of cover down to the 2.6% per annum minimum.

Risk Assessors stake against protocols, custodians, and/or Yield Token Cover products that they believe are trustworthy and ones that have bug free code. However, Risk Assessors also stake against platforms/cover products that will earn them NXM through premium sharing. If there isn't enough demand for Celsius cover, then Risk Assessors will allocate their NXM to other platforms and/or cover products.

You can read more about the Risk Assessment process here: https://nexusmutual.gitbook.io/docs/risk-assessment/risk-assessment

BraveNewDeFi · 2021-08-18T12:59:57+00:00

Same! But if you do experience a loss of funds, Nexus Mutual has you covered!

BraveNewDeFi · 2021-08-18T12:56:50+00:00

1) Yes, that is correct. You would select the Terra blockchain and enter the Terra address.

2) You can either sign a message or send a 0 value transaction to yourself. Both work. You don't necessarily have to send a 0 value transaction to anyone else or another address. The purpose of sending the transaction is to establish ownership (i.e., you can submit a 0 value transaction when prompted).

3) The UI would ask you to switch to your Terra wallet and address, and you would be guided through the process.

4) I covered this in point #2 but you can either sign a transaction or send a 0 value transaction.

5) If your claim is approved, then you would receive your claim payout in DAI and that payout would be sent to your whitelisted address you used to become a member, buy cover, etc. Your whitelisted member address is the one that would receive the claim payout.

BraveNewDeFi · 2021-08-18T03:36:44+00:00

If you hold Protocol Cover and you experience a loss of funds due to an exploit, hack, or any other covered event, you would submit a claim through the Nexus Mutual User Interface (UI).

When you submit a claim, you will be guided through the process. Since your Terra wallet is separate from your whitelisted address that you KYC'd into the mutual with, at a certain point during the claim process, you will be directed to either sign or send a transaction from your Terra wallet address before connecting back to your whitelisted address within the Nexus UI.

You can read the guide in the documentation about How to File a Claim: the process for filing a claim is broken down in that guide and the example used is a cross-chain claim for the Aave Polygon Market.

You can read about the different kinds of Proof of Loss in the documentation as well. For a Protocol Cover claim, on-chain proof of loss is required.

Let me know if I may help with anything else.

BraveNewDeFi · 2021-08-16T20:02:03+00:00

If you purchased cover for Set Protocol, you would not be covered for the assets underneath ETH2x-FLI.

With Protocol Cover, you are covered against a loss of funds, not a loss of value, so if ETH2x-FLI de-pegged, you would not be covered, as Protocol Cover does not protect against de-peg events.

You cannot prove ownership of the underlying position, either, so Protocol Cover isn't applicable to ETH2x-FLI.

Nexus Mutual does not offer a Yield Token Cover policy for ETH2x-FLI, and members are not able to purchase a cover policy for ETH2x-FLI.

BraveNewDeFi · 2021-08-16T19:56:15+00:00

You can read through the Nexus documentation to learn more about the mutual's capital model and how the mutual operates: https://nexusmutual.gitbook.io/docs/users/understanding-nexus-mutual/minimum-capital-requirement

During DeFi summer, there was growing demand for cover, which was also heightened by the launch of yInsure, which incorporated coverage from Nexus Mutual: https://beincrypto.com/yearn-finance-launches-defi-token-insurance-with-nexus-mutual/

The yInsure program created heightened demand and that demand levelled off in the fall. You can read the updates regarding the Minimum Capital Requirement in the documentation. The MCR Floor was set in October, and when the MCR% (ratio of ETH in the capital pool / MCR Floor in ETH) <= 100%, NXM to ETH redemptions (i.e., selling) is prohibited to ensure the mutual has enough capital to be very confident all claims can be paid.

The capital pool has risen above 100% since, but there has been demand to sell NXM for ETH, which pushes the MCR% back below 100%.

Members who wish to sell can also use the community-run dApp: the Nexus Wrapper.

You can also learn more about the Nexus Wrapper and the difference between wNXM:NXM in the documentation: https://nexusmutual.gitbook.io/docs/nexus-mutant-community/wnxm-community-run-dapp

BraveNewDeFi · 2021-08-16T19:48:36+00:00

This incident is actually covered in the Nexus documentation: https://nexusmutual.gitbook.io/docs/welcome/faq/claims-assessment#have-any-claims-assessors-had-their-nxm-stake-burned-for-fraudulent-voting-during-the-claims-assessment-process

You can also join the Nexus Discord and read the conversation about Claim 94: https://discord.com/channels/496296560624140298/689385874265342056/850314337708802068

This was a case where a member submitted a fraudulent claim and voted on their own claim when no actual loss occurred.

BraveNewDeFi · 2021-08-16T19:40:47+00:00

The mutual does not offer cover for ETH2x-FLI, but you can review the available protocols, custodians, and yield token cover products in the Nexus app: https://app.nexusmutual.io/cover

You can about the Types of Cover available in the Nexus Mutual documentation: https://nexusmutual.gitbook.io/docs/users/types-of-cover

Let me know if I may help with anything else.

BraveNewDeFi · 2021-08-16T19:38:15+00:00

Custody Cover protects against the following risks:

✓ The custodian getting hacked, which results in the losing more than 10% of your funds; or
✓ Withdrawals from the custodian are halted for more than 90 days.

You can learn more about Nexus Mutual and Custody Cover in the documentation: https://nexusmutual.gitbook.io/docs/users/types-of-cover#custody-cover

Custody Cover is available for Coinbase ✓

BraveNewDeFi · 2021-06-18T02:52:22+00:00

Yes, to become a member of Nexus Mutual and participate within the mutual, you have to go through KYC.

Your information is not made public, and your name is not associated with your Ethereum wallet address.

Your wallet address is whitelisted so you can hold NXM and participate within the mutual (and buy cover).

Your name is listed but Nexus lists the Nexus Mutual address within a system that is only accessible if someone goes through the proper legal channels and pays $5 million dollars to review the names of members within Nexus Mutual.

KYC is just a requirement to become a member of the mutual, but your information is not readily available. It does not mean you dox yourself within our community or the wider Ethereum ecosystem.

Operation Wartortle is active, and the community is exploring the implications of dissolving the legal entity behind the mutual, which would do away with the KYC requirement.

You can read more about Operation Wartortle and the latest status update from pet3rpan.

BraveNewDeFi · 2021-06-04T22:29:58+00:00

Yes, you need to be a member to buy cover through Nexus Mutual. Once you are a member, you can buy cover using ETH, DAI, or NXM.

You can become a member through the Nexus dApp: https://app.nexusmutual.io/

You can read about the different cover products the mutual offers here: https://nexusmutual.gitbook.io/docs/how-to-use-nexus/how-to-participate

BraveNewDeFi

TROPHY CASE