Nexus Mutual Newsletter | 10 November 2022
This newsletter is brought to you by the Nexus Communications team. Stay up-to-date on the latest news and updates from the Nexus Mutual community.
Week in Summary
In the last week, we have seen one of the largest centralized exchanges halt withdrawals, report billions in losses, shift the market lower, and create a great deal of fear within crypto on a whole.
Meanwhile, Nexus Mutual members have been filing Hodlnaut claims and members have been reviewing and voting on these claims. Below, we summarize Hodlnaut claims filing and payouts to date and provide guidance for members who held active FTX Custody Cover when withdrawals were first halted.
As a reminder—anyone can review active cover, capital pool holdings, NXM staking, etc. in the Nexus Tracker. The Nexus Mutual protocol provides open access and transparency for everyone.
Hodlnaut Claims Filing and Payouts to Date
On Monday, members began filing Holdnaut Custody Cover claims. So far, there have been 17 claims filed. Anyone who held an active Hodlnaut Custody Cover can still file a claim. Below is a review of Hodnaut claims status to date:
Hodlnaut Claim Outcomes to Date
Out of the 17 claims that have been filed so far, nine have been approved and members have paid 161 ETH + 155,700 DAI. Claims 126, 127, and 128 were all related to the same account. The loss amount was ~48 ETH and Claims 127 and 128 most closely matched that actual loss with a 50 ETH payout. Claim 126 was denied to avoid paying more than the actual loss.
Review the Hodlnaut Claims Tracker for more information.
Claims Open for Assessment
There are still Hodlnaut claims that haven’t met quorum and are open for assessment. You can review the Hodlnaut Claims Tracker to see individual Hodlnaut claim’s status. Any claim noted as Pending is open for review and voting.
You can talk about any open claims in the Claims Discussions channel in the Nexus Mutual Discord.
To review and vote on open claims, you can head to the Claims tab in the Nexus Mutual user interface.
Filing a Claim
More claims can still be filed, and I expect that more will as the week goes on. Anyone who had an active cover when Hodlnaut first halted withdrawals on 8 August 2022 can read through this guide to prepare for claims filing.
All of the Hodlnaut Custody Covers that were active when withdrawals were halted are included in this list. If you experienced a loss and held an active cover, you can still file your claim.
Hodlnaut Claims Questions
Reach out in the Nexus Mutual Discord with any questions related to claims filing.
FTX Halted Withdrawals, Active Cover, and Next Steps
While members have been submitting and voting on claims for one custodian that halted withdrawals, another major custodian suddently collapsed and halted withdrawals. The situation with FTX is ongoing and it’s unclear their path forward.
Some clarity for FTX Custody Cover holders:
The halted withdrawals timer started on 8 November 2022 at 10:54pm UTC.
If withdrawals are still halted on 6 February 2023 at 10:54pm UTC, members who held active FTX Custody Cover when withdrawals were first halted can begin filing claims.
Like always, I’ll make an announcement on Discord and Twitter at that time should withdrawals still be halted.
FTX Custody Cover Active When Withdrawals Were Halted
When withdrawals were first halted, there were 35 FTX Custody Covers that were active. These covers total 1611 ETH and 6,853,539 DAI. At the time of writing, this cover is valued at ~$8.79m USD.
Over the last several days, members have asked how these liabilities impact the Nexus Mutual capital pool. The capital pool is fully on-chain, and you can verify the balance at any time in the Nexus Tracker or by reviewing the Nexus Mutual Financials section in the documentation.
The FTX Custody Cover liabilities represent 4.33% of the capital pool holdings. The protocol has enough capital to pay all claims if withdrawals are still halted after 90 days passes and members submit claims with proof of loss.
Preparing for Future Claims Filing
When you file a claim, you need to provide off-chain proof of loss. Claims Assessors review proof of loss to determine if a loss occurred, and this plays a crucial role in determining the validity of a claim.
Anyone with an FTX Custody Cover should:
Download their account statements from FTX International
Take screenshots of their current account balances
Get the read-only API keys from their account and keep them on file
In February, this can be used to provide proof of loss. Just keep this information on file in the event the FTX International website goes down again.
If you have any questions about FTX Custody Cover or preparing for claims filing, reach out in the Nexus Mutual Discord.
I understand that this has been an incredibly stressful week and you are worried about your funds stuck on FTX. If we can answer any questions related to FTX Custody Cover, please let us know on Discord.
Community Call on 8 November
Nexus Mutual Discord, Community Calls Voice Channel
On this week’s community call, I reviewed the community highlights and Rei shared the latest progress from the Tokenomics Working Group.
Members interested in a detailed overview of the latest progress notes may review this post by Rei on the Nexus Discord’s #tokenomics-revamp channel. Rei as well as the working group are happy to receive any feedback and to further engage in debates to refine their thinking. A few headlines from Rei’s are as follows:
The project is trying to strike a balance in dealing with the following main questions:
How much value is backing NXM?
How much capital can the mutual capture?
How much exit liquidity are we giving members that is close to book value?
The group is exploring mechanisms to encourage capital to the mutual and drive cover growth, while ensuring there’s enough capital to pay claims for active cover.
The implementation phase for the project will not start before Nexus Mutual V2 launches.
I shared the latest updates from the Nexus Foundation. Hugh and Ricky were in Lisbon at a staking reward summit, where participants are discussing ways to increase quality in ETH 2.0 staking services for accelerated mass adoption.
Nexus Mutual V2 work is progressing nicely with a final audit of the code base, minor edge cases and UI updates.
Unfortunately, the tool we use to record our community call malfunctioned and the recording was lost. Sorry for this inconvenience!
The Last Week in Review | 31 October - 6 November 2022
Active Cover as of 7 November 2022
Total active cover stands at $173.1m | 109,118.76 ETH with active coverage by cover type as follows.
To meet the word count limit, we’ve omitted the breakdown by cover product. You can review total active cover and active cover by cover product on Nexus Tracker.
Up Next
Join us on Tuesday, 22 November, for our next community call at 9am EST / 1pm UTC to stay up-to-date on all things Nexus Mutual.
Don’t forget to follow the Nexus Mutual Twitter account for regular updates and communication from the mutual. You can follow the Nexus Mutual Bot Twitter account to stay up to date on cover buys as they happen.
We know it’s been a difficult week for many. Members will continue to review and vote on Hodlnaut claims, get members paid for their losses, and answer questions related to FTX Custody Cover.
We hope everyone is well during this trying 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’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.