Welcome to the thirteenth issue of The Hedge.
We're back again this week to share some of the recent discussions on the Nexus Mutual governance forum, including updates on the Tokenomics Redesign Project. Additionally, we're excited to announce the launch of a new Dune dashboard.
Let’s look at the details.
Nexus Mutual Claims Dashboard is Live on Dune
Nexus Mutual has established itself as a leading provider of on-chain protection—our members’ commitment to reliably paying claims is a key factor behind this success. To date, members have received over $17 million in claim payouts.
To further improve transparency around the claims process, the R&D and Marketing teams have launched a new Dune Dashboard. You can now review the mutual's claims history in detail and enjoy greater insights into the mutual’s his.
Check out the newly launched Claims dashboard here!
In the Claims dashboard, you can find:
✅ Total claims paid broken down by ETH and DAI
✅ Information on open claims in V2
✅ Historical information on closed V2 and V1 claims
✅ Claims Assessment rewards history
And more!
Link to tweet
This is the second dashboard launched by the DAO teams, with the first being the Capital pool and ownership dashboard. DAO team members are working to launch a Covers and Staking dashboard in the coming weeks, as well. We'll announce each new dashboard as it goes live.
You can review both dashboards on the Nexus Mutual page on Dune.
Roadmap for New Tokenomics
Over the last week, members have asked for an update on the tokenomics project. The tokenomics discussion has taken place across the forum and on Discord, so the Community team has updated the documentation to provide a broad overview of the background, timeline of the progress made to date, and breakdown of the remaining phases that need to be completed.
Finalizing the Ratcheting AMM Mechanics
In early March, Rei shared the RFC - Tokenomics Design Detail post on the forum, where he asked members for feedback on the following mechanics for the new tokenomics:
Currency of redemptions
Buying / selling availability
TWAP for establishing system price
NXM price shock upon transition from bonding curve
Oracle safety buffer
Potential soft launch
Members have provided some initial comments, but if you haven't shared your thoughts, you still can. Rei has shared the comments to date with the Engineering team. They are reviewing the proposed solutions and providing feedback on the suggested mechanics.
Roadmap of Final Phases
You can find a detailed description of the remaining phases in the documentation; below you can find a list of the four final phases.
Developing the system
Setting system parameters
On-chain governance vote
Implementation
You can participate in the discussion on the forum and in the tokenomics revamp channel on Discord.
Update on Euler Finance Recovery
In last week's issue of The Hedge, we shared an update on the Euler Finance claims reimbursement process.
Link to tweet
Since this update, two more claimants have responded and indicated they would return their claim payment to the Nexus Mutual DAO treasury since they will experience no material loss after claiming their reimbursement from Euler Finance.
The member who redeemed a payout for Claim V2 #5 sent back 0.84 ETH to the DAO treasury, and the member who redeemed a payout for Claim V2 #11 indicated they will return their claim payment but need certain documentation from the mutual before redeeming their reimbursement from Euler Finance and returning the 60 ETH to the DAO treasury.
Recovery Rate
Seven of the nine claimants have returned a total of 12.99184203 WETH, 107.57 ETH, and 1,720,207 DAI to the DAO treasury. The recovery rates are currently as follows:
99.05% for DAI-denominated Euler Finance claims
32.39% for ETH-denominated Euler Finance claims
Once the 60 ETH from Claim V2 #11 is returned, the ETH recovery rate will reach 48.52%.
You can find a detailed summary of the Euler Finance reimbursement and recovery process in the documentation.
Claim V2 #4
The member who redeemed 199.6 ETH for Claim V2 #4 emailed the mutual and indicated they would not return their claim payment.
Members have discussed taking action to pursue the return of the 199.6 ETH given the claimant has redeemed their reimbursement from Euler Finance. Before any direction can be determined for the potential return of funds, members need to start a discussion on the Nexus Mutual governance forum–learn about the Request for Comment (RFC) process if you're interested in starting a discussion.
[RFC]: Restart Enzyme vault & diversify ETH across staking providers
Over the past few weeks, Nexus Mutual members have been discussing a proposal from the Avantgarde Treasury team to redeploy funds from the Enzyme vault. The Enzyme team had previously created a custom integration with Chainlink's Proof of Reserve oracle to track the price of the Maple Finance deposit, which took the burden of technical work off of the Engineering team’s plate.
However, there are concerns among some members regarding the risk management of the proposed investment strategy. Specifically, there have been requests for more detailed descriptions of active position monitoring and management, as well as best practices for mitigating risk exposure and concentration risk.
Some members have requested information about potential required support from the Nexus Mutual Engineering team in the proposed investment strategy. While the previous use of the Enzyme vault reduced the Engineering team's involvement, there are questions about the potential engineering resources required for any increased allocation of funds in the Enzyme vault.
Please review the forum post, share your thoughts or ask questions, and get involved in this discussion!
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.
Members are continuing to discuss Tokenomics Design Details, with further discussion about the potential impacts on capital efficiency.
Jeremiah, one of the co-founders at OpenCover, requested feedback on the Blue Chip Protocol Staking Pool they have launched in partnership with DeFiSafety.
Review, comment, and get involved in the Nexus Mutual governance process!
The Last Week in Review | 10–16 April 2023
In the last week, the mutual sold $15.1m USD worth of cover and earned $29.1k USD in fees, as outlined below.
Active Cover as of 17 April 2023
Total active cover stands at $83.0m with active coverage by cover type as follows.
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.
Nexus Mutual Dune Dashboard for Capital Pool and Ownership, created by Nexus Mutual R&D and Marketing teams
Nexus Mutual Dune Dashboard for Claims, created by Nexus Mutual R&D and Marketing teams
Nexus Mutual Dune Dashboard, created by Richard Chen
Nexus Mutual’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.