The Hedge | 23 March 2023
The Hedge | 23 March 2023
Brought to you by the Nexus Mutual DAO
Welcome to the ninth issue of The Hedge.
In the last week, Euler Finance had a series of flash loan attacks. Directly following the launch of the Nexus Mutual V2’s UI, members started filing claims. The first payouts are already made.
Overall, it has been an active week for the mutual, showcasing the mutual’s growth and ability to protect its members from DeFi risk.
Below, we summarize the claims filed to date and provide guidance for members who held active Euler Finance Protocol Cover when withdrawals were first halted.
Let’s dive in.
Update and Notes from Euler Finance Claims Filing
On Monday (13 March), Euler Finance was exploited for a loss of $197M. At the time of the attack, there was ~$5.2m in cover that was active at the time the loss occurred.
Since the cool-down period’s end on 16 March, claims filing is open for anyone who held active cover at the time of the loss and was impacted by the exploit.
The Nexus Mutual team has been in contact with the Euler Finance team; we’ll work together in case there are any reimbursements to users in the future.
Claims Filed to Date
📊 Anyone can see an overview of the eligible Euler Finance Protocol Covers as well as the list of filed claims in the Euler Finance Claims Tracker.
🛡️ As of Wednesday GMT EOD, 8 claims have been filed for a total of nearly $2.3m.
💸 The first payouts are already made: Two claims totaling $138,750 have been redeemed by the users. When a claim is approved, members need to use the Nexus Mutual UI and press the redeem button.
Resources for Members Acting as Claims Assessors
🗒️ Members who plan to participate as claims assessors to earn rewards can read the V2 documentation and review the analysis and discussion in the Nexus Mutual Discord.
🗒️ As of Thursday GMT morning, 6 of the 8 claims have been accepted.
Resources for Members Filing Claims
📁 For more information, you can read the Euler Finance claims filing guide.
📁 Anyone who needs assistance with filing their claim can reach out in the Euler Finance Claims Support channel on Discord.
Changes to the Nexus Mutual V2 UI
With the new user interface live, the team is keen to receive some community feedback. Within the last week, the following updates were made to the UI following community’s feedback:
Prices and capacity can be accessed without having to connect your wallet.
Claim assessors can clearly see if an affected address has been verified by the claimant using on-chain signatures.
Staking pool rewards are displayed for both managers and delegators.
Numerous smaller UI improvements for better understandability.
What do you like and dislike about the new UI? 💭
Let us know on Discord in the User Interface Feedback channel in the DAO Forum!
Nexus Mutual V2 Feature Highlight: Cover and Staking NFTs
Two of the critical features entering our lives after the Nexus Mutual V2 update are Cover NFTs and Staking NFTs. Let’s review the novel ways of flexibility these offer.
Cover NFTs
In Nexus Mutual V2, cover purchased by members are tokenized and represented as an NFTs (ERC-721) that is held in the member's address. Cover NFTs allow for features that were previously unavailable, including:
Flexible coverage: Members can now easily renew their cover, update the period length or the cover amount without buying additional cover.
Multi-event protection: If a member suffers a loss less than the cover amount, they can now file partial claims while the remaining cover amount continues to stay active for the cover period.
Transferability: Members can now switch membership before an existing cover expires.
Members can review all Nexus Mutual V2 Cover NFTs on OpenSea. Members with existing cover from Nexus V1 will soon be able to migrate their cover to V2 cover NFTs from the Nexus Mutual V2 UI. To learn more on covers in Nexus Mutual V2, please check out our documentation.
Staking NFTs
Similar with Cover NFTs, Staking NFTs offers members greater flexibility in managing their staked NXM.
Once a member chooses their preferred staking period and stakes their NXM in one or multiple pools, their staking positions are tokenized as an NFT (ERC-721).
Staked NXM cannot be withdrawn before the staking period ends, but members can always choose to sell their staking position and access liquidity before a staking period ends.
Members can review all Nexus Mutual V2 Staking NFTs on OpenSea. To learn more on staking in Nexus Mutual V2, please check out our documentation.
Nexus Mutual is now integrated with CoW Protocol
In 2022, the BootNode team applied for a grant to build a CoW Protocol integration for the SwapOperator contract, which handles any capital pool asset trades.
Members approved the grant, and thanks to the BootNode team's hard work, we're happy to announce that the Cow Protocol integration went live with the Nexus Mutual V2 launch!
Learn more about our CoW Protocol integration, the benefits it brings to any future trades, and how the BootNode team is working as an important part of the Nexus Mutual ecosystem in our blog post.
Governance forum discussions
Members continue to actively discuss several proposals. You can review and get involved in the following active discussions on the governance forum.
Request for comments on tokenomics design details. Following the Snapshot vote where members signaled support for the ratcheting AMM design, Rei’s post on the forum comes with a list of suggestions and discussion points for wider discussion among members. Rei has asked for any comments before 31 March.
wNXM buyback discussion. With the M11 Credit wETH pool withdrawal complete, Dopeee shared that members could begin discussing the technical requirements necessary to move the wNXM buyback discussion forward. If there is broad consensus on the direction and technical details, this can transition to a formal protocol improvement proposal.
The Investment team members have one request for comment (RFC) discussion point this week: Proposal - Investing the Capital Pool in Uniswap v3 ETH/DAI, posted by oSaaT
Review, comment, and get involved in the Nexus Mutual governance process!
The Last Week in Review | 13 - 19 March 2023
In the last week, the mutual sold 12.9m USD worth of cover and earned $49.8k USD in fees, as outlined below.
Between the 13th and the 16th of March, the protocol was in a scheduled downtime for the Nexus Mutual V2 upgrade and members weren’t able to purchase cover during this time frame. The data below reflects the covers purchased between the 16th and 19th of March.
We’ll continue our reporting of active covers as soon as our analytics dashboard work as part of the Nexus Mutual V2 upgrade is complete.
Up Next
Don’t forget to follow the Nexus Mutual Twitter account and Nexus Mutual Lens account for regular updates and communication from the mutual.
Have a great week!
Resources
Nexus Mutual is fully transparent. You can verify the information within this newsletter and learn more about the mutual through the resources below.
The analytics dashboards that work with Nexus Mutual V2 haven’t been finalized yet. For a limited time, members are not able to track cover buys in real-time. We apologize for any inconvenience.
Nexus Mutual’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.