Nexus Mutual Newsletter | 17 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
This week, I provide an overview of Hodlnaut claims and payouts, the Slashing Coverage Program announced with Liquid Collective, claims filing information about FTX and BlockFi, and more.
Nexus Mutual Pays $1.04m in Claims After Hodlnaut Halts Withdrawals
In the last week, 21 Hodlnaut claims have been filed. Claims Assessors reviewed, discussed, and voted to approve 18 claims and deny three (3).
To date, members have approved and paid out 221 ETH + 764,008 DAI — more than $1.04m — to people affected by halted withdrawals on Hodlnaut.
The Hodlnaut claim event marks the first DeFi-native, on-chain cover payouts that protected people against a custodial failure off-chain.
To learn more about the Hodlnaut claim event, read our summary here.
Just a reminder: members with Hodlnaut cover that have not yet filed a claim can still do so. See the How Hodlnaut Custody Cover holders can prepare for claims filing guide for more information.
Liquid Collective and Nexus Mutual Collaborate to Launch Comprehensive Slashing Coverage Program
Liquid Collective has announced the launch of the Slashing Coverage Program in collaboration with Nexus Mutual. Through this unique collaboration, Liquid Collective—the liquid staking protocol built and run by a collective of web3 teams like Coinbase, Kraken, Figment, and Kiln—is providing institutional participants with comprehensive slashing coverage: a multi-tiered program focused on protecting against slashing events.
Nexus Mutual provides Liquid Collective with dynamic umbrella coverage up to 2.0 ETH per validator.
“Nexus Mutual's coverage dynamically adjusts the cover amount as more ETH is staked to reflect the change in risk. More validators mean more diversified risk, so we lower the cover per validator as Liquid Collective grows to provide the perfect balance between cost and coverage.” — Hugh Karp, Founder of Nexus Mutual
Through this collaboration, Nexus Mutual and Liquid Collective are driving institutional growth and working to secure the Ethereum network.
To learn more, read the announcement: Liquid Collective and Nexus Mutual Collaborate to Launch Comprehensive Slashing Coverage Program
StakeWise ETH Staking Cover Renewal
StakeWise has renewed their ETH Staking Cover to protect their validator pool against penalties, slashing events, and missed rewards. In July, Nexus Mutual and StakeWise announced the launch of ETH Staking Cover.
The StakeWise cover protects validators up to 3.0 ETH per validator. To learn more about our partnership and the launch of ETH Staking Cover, read our previous announcement.
Transparency around Custody Cover Liabilities
Following the recent developments with major custodians, we would like to take the opportunity to share some key insights regarding the mutual’s Custody Cover liabilities.
Withdrawal Halt Announcement Timings
The following custodians made announcements about withdrawals in the last week:
FTX International halted withdrawals on Tuesday, 8 November at 10:54pm UTC
BlockFi halted withdrawals on Friday, 11 November at 1:16am UTC
FTX US halted withdrawals on Friday, 11 November at 5:00pm UTC
Gemini Earn halted withdrawals on Wednesday, 16 November at 1:32pm UTC
Below is a summary of each custodian and associated Custody Cover listing. If you held cover and were affected, please read further.
Liabilities Across Relevent Custody Cover Products
FTX Custody Cover
1611 ETH + 6,853,539 DAI
Hodlnaut Custody Cover
282 ETH + 627,240 DAI
Exlcudes claims that have already been paid. These liabilities represent the remaining covers that could still be filed.
BlockFi Custody Cover
19 ETH + 579,686 DAI
Gemini Custody Cover
40 ETH + 180,400 DAI
Due to halted withdrawals in the Gemini Earn program
Claims Filing for FTX, BlockFi, and Gemini Earn start in February
Anyone who held a Custody Cover that was active at the time withdrawals were first halted will be able to file a claim if withdrawals are still halted after the 90-day period passes.
Claims should not be filed before the 90-day period passes per Section 1.2 of the Custody Cover wording.
If withdrawals are still halted for the following custodians once the 90-day period passes, then claims can be filed for halted withdrawals on:
FTX International starting on Monday, 6 February 2023 at at 10:54pm UTC
BlockFi starting on Thursday, 9 February 2023 at 1:16am UTC
FTX US starting on Thursday, 9 February 2023 at 5:00pm UTC
Gemini Earn* starting on Tuesday, 14 February 2023 at1:32pm UTC
Only Gemini’s Earn program was impacted by halted withdrawals. The Gemini exchange is operating as usual per their recent announcement.
Preparing for Future Claim Events
If you have been impacted by any of the above events, please take screenshots of your account balances, download your account statements, keep your read-only API keys on file, and collect any other supporting evidence for future claims filing.
This will be required when you provide proof of loss in February 2023 if withdrawals are still halted.
In the coming weeks and months, we’ll continue to provide regular updates on these custodians to help those with active cover and to keep members up-to-date on the mutual’s liabilities.
Anyone can review active cover by cover product on the Nexus Tracker.
If you have questions about the above, please direct them to the ❔ask-me-anything channel on the Nexus Discord.
The Last Week in Review | 7–13 November 2022
Last Week in Cover Sales
In the last week, the mutual sold $30m USD worth of cover and earned $155k USD in fees, as outlined below.
Active Cover as of 14 November 2022
Total active cover stands at $153.6m | 129,948.07 ETH with active coverage by cover type as follows.
You can review total active cover and active cover by cover product on the 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.
Have a great weekend everyone 🐢
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.