Nexus Mutual Newsletter | 12 October 2022
This newsletter is brought to you by BraveNewDeFi and Sem Turan on the Nexus Communications team. Stay up-to-date on the latest news and updates from the Nexus Mutual community.
Nexus Treasury Highlights
ETHW Sale and wNXM Buyback | Completed!
Members had previously approved Proposal 180: sell the mutual’s ETH PoW assets via on-chain governance, with weekly progress made and reported on the newsletter’s previous issues. The team has finished executing the ETHW sale, and the proceeds were used to buyback wNXM below book value.
💸 Total ETHW sold: 114,135.76
💰 Total wNXM acquired: 55,802.23
📚 Book value of acquired wNXM: 1,265.91 ETH
The wNXM has been sent to the Nexus Treasury, per the terms in Proposal 180. You can read a summary of the initiative that long-time member Gauthier started to make Proposal 180 a reality.
State of the Nexus Treasury
1. Members voted to allocate wNXM acquired through buyback in Dec 2021 and January 2022 in the following Snapshot vote.
2. LDO assets will be used to conduct a wNXM buyback according to the outcome of the following Snapshot vote.
3. Funding that is currently earmarked for programs, grants.
Reviewing treasury expenditures | Immunefi matching bug bounty program
The Immunefi matching bug bounty program has been active for over a year: it’s now time for members to review and evaluate whether or not the mutual should continue funding this program.
In this forum post, I review the cost of the Immunefi matching bug bounty program to date, the projected costs, and the impact on Nexus Treasury holdings.
Members should review, discuss, and decide if we should continue funding this matching program or if we should reduce or discontinue funding for the program.
Cost to date: 8,834 wNXM
Projected cost: $550,000 (32,797 wNXM at current wNXM price)
This proposal will be open for discussion and review for the next ten (10) days. Members can share their thoughts, analysis, and comments on the forum.
Reviewing treasury expenditures | Dedaub smart contract monitoring service
The dedaub smart contract monitoring service has been active for over a year: it’s now time for members to review and evaluate whether or not the mutual should continue to provide funding for this service.
In this forum post, I review the cost of the dedaub smart contract monitoring service to date, the projected costs, and the impact on Nexus Treasury holdings.
Members should review, discuss, and decide if we should continue funding this smart contract monitoring service or if we should discontinue funding for this service.
Cost to date: 10,102.79 wNXM
Current cost: $20,000 per month (1,192.60 wNXM per month at current wNXM price)
This proposal will be open for discussion and review for the next ten (10) days. Members can share their thoughts, analysis, and comments on the forum.
Community Highlights
Delisting Custodian Yield Products
In recent months, members have expressed concern regarding the risk associated with custodians that offer yield products. The team has determined that there may currently be a significant mismatch between risk and pricing on custodian yield products, given the Nexus V1 pricing model’s limitations.
Out of an abundance of caution, the team has delisted BlockFi, Celsius, Hodlnaut, inLock, Ledn, Nexo, and Yield App Custody Cover products.
If you hold active cover for any of these custodians, you will still be able to file claims should you experience a loss as outlined in the Custody Cover wording. Going forward, you won’t be able to buy Custody Cover for these platforms.
Once Nexus V2 launches, the team can look to relist these platforms. Nexus V2 will have a dynamic pricing model that will be able to adjust pricing to reflect perceived increases in risk.
Community Call on 11 October
Nexus Mutual Discord, Community Calls Voice Channel
On this week’s community call, BraveNewDeFi went over community highlights and governance proposals, followed by Hugh’s team update. Hugh shared an update on the mutual’s work with BootNode and the ETHW sale.
He also shared that the engineering team is hyper-focused on Nexus v2, and they are currently working through minor edge cases. They have been focused on hiring engineers to grow the size of the egineering team and increase the mutual’s development resources.
If you couldn’t join us on the call this week, you can listen to this week’s community call recording on the Nexus Mutual YouTube channel.
Governance forum discussions and proposals
Snapshot vote: Allocate $SAFE to buyback $wNXM
Vincent proposed using SAFE holdings to buyback wNXM below book value.
If SAFE is worth above 0.7$, propose to sell 50% for wNXM
If SAFE is worth above 1$, propose to sell the other 50% for wNXM
With this vote, Vincent’s goal is to achieve soft consensus on how the mutual will use our SAFE holdings once it does become transferable.
After an open comment and review period, the choices presented on Snapshot are:
Yes, buyback wxnm
No
This proposal will open for voting on 12 October at 1:02am EST / 5:02am UTC and it will be closed for voting on 20 October at 1:00pm EST / 5:00pm UTC.
Be sure to review and vote on this Snapshot proposal:
Update: BootNode Team to support remaining Nexus V2 work
At the beginning of October, members had unanimously approved the grant proposal for the development of a ERC-4626 compliant vault by the BootNode team.
With Nexus V2 developments as first priority within the team and because the BootNode team is very knowledgeable with Nexus’ smart contracts landscape, the core team has decided to work on the supporting work for V2 with the BootNode team. They will start the development of the vault once their support for V2 is finished.
The Last Week in Review | 3-9 October 2022
Last Week in Cover Sales
In the last week, the mutual sold $22.5m USD worth of cover and earned $66.8k USD in fees, as outlined below.
Active Cover as of 10 October 2022
Total active cover stands at $179m | 137,150.49 ETH with active coverage by cover type as follows.
You can review total active cover and active cover by platform on the Nexus Tracker platform.
Up Next
Join us on next week’s Mutant Meetup call in Discord 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.
Have a great rest of the 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.