Nexus Mutual Newsletter | 21 March 2022
Nexus V2, Immunefi matching bounty review, Bancor deposit, new listings, Risk Assessment opportunities, and more...
We hope you had a great weekend, Nexus Mutants!
In the last week, we provided more information about Nexus V2, added productive assets to the Community Fund via Bancor staking, listed another protocol, and more.
Let’s get caught up on all things Nexus Mutual.
Nexus V2: The Syndicate Network and Delegated Staking
During this week’s Mutant Meetup call, I provided an overview of the syndicate network and delegated staking. If you recall, I reviewed cover policy improvements and the dynamic pricing model last week.
The most important concepts from this week’s review:
The mutual will become an infrastructure layer, where syndicates manage staked NXM, define the mutual’s distribution channels, and efficiently allocate capital where supply is needed to meet demand.
Delegated staking makes Risk Assessment more accessible, while socializing gas costs among members. Trusted subject matter experts and dynamic pricing will increase capacity offered, while capturing more revenue for the mutual.
Economic incentives for syndicate operators and platforms who integrate with the mutual are greatly improved. These incentives allow for wider distribution and more efficient capital management, which translates into more value for members.
For a synoposis of this week’s Nexus V2 review, see the Twitter thread below:
Immunefi Matching Bug Bounty Program Review
Just last week, Nexus Mutual announced our first matching bounty payout for the Yearn Finance critical vulnerability disclosure through Immunefi. The Matching Bug Bounty Program was launched with Immunefi in September 2021, after being passed via Snapshot governance.
Now that the mutual has matched a $200,000 bounty for a critical vulnerability disclosure, members need to review the program, determine if it should continue and receive additional funding, and if any adjustments should be made to the terms of the program.
I have provided a review of the program on the Nexus Mutual forum, and we have seen input from Hugh, as well as Mitchell from Immunefi. This Request for Comment (RFC) was posted last week and will soon transition to a full proposal.
We need members to discuss and determine:
If the program should continue
If the matching budget for the program should increase
If the matching ratio should be changed (e.g., from 1:1 to 0.5:1)
If the program should be expanded (i.e., cover more protocols above a certain liabilities threshold)
Members can review the discussion on the forum and review the Twitter thread below for more information:
Nexus Mutual’s First Productive Treasury Assets—Bancor Deposit
On Wednesday (16 March), Nexus Mutual deposited 50,000 wNXM from the Community Fund into Bancor’s single-sided staking pool, where wNXM is paired with BNT and receives protection against impermanent loss (IL).
Over time, Bancor will gradually increase space in the pool; members have approved the Community Fund to deposit up to 70,000 wNXM in total, so an additional 20,000 wNXM can be deposited in the future when space becomes available in the pool.
This is the first allocation of assets from the DAO treasury (a.k.a., the Community Fund) into a productive yield source. The assets in the DAO treasury are used to fund Nexus Hub operations, as well as community-driven grants and initiatives. The mutual has now increased the depth of wNXM liquidity on chain and added a source of non-operating revenue to the treasury, which will be generated from trading fees on Bancor over time.
This is another big step forward for the Nexus Mutual DAO!
Last Week in Cover Sales (7–13 March)
Recent Listings and Risk Assessment Opportunities
In the last month, we have listed several new protocols. As we noted in last week’s newsletter, the largest single cover buy on record was made by CelsiusX for an Enzyme v3 Protocol Cover policy. We have also seen significant cover buys since Angle Protocol was listed not even two weeks ago.
In the last week, we have listed Platypus—a single-side AMM (decentralized exchange) designed for exchanging stable cryptocurrencies (ERC20 tokens) on the Avalanche blockchain. Platypus has $1.2b in TVL and has been audited by Hacken and Omniscia (here and here).
We also recently listed Beefy Finance, a decentralized, multi-chain yield optimizer with $900m+ in TVL, which allows its users to earn compound interest on their crypto holdings. In the last week, we have seen more Risk Assessors stake against Beefy.
Risk Assessment Opportunities
The mutual needs additional staking to increase capacity on Angle Protocol, Beefy Finance, and Platypus Finance. There has also been significant demand for coverage on Anchor Protocol and Alpha Homora v2, as well.
Members can stake NXM against these protocols to earn a proportional share of 50% of premiums earned from cover sales when members buy cover for these protocols. Anyone can learn more about Risk Assessment by reviewing the section in the Nexus Mutual documentation here.
In-Demand Protocols
To date, we have seen significant demand for both Anchor Protocol and Alpha Homora v2. To create more open capacity and meet demand, the mutual needs more Risk Assessors to stake against Anchor Protocol and Alpha Homora v2.
Below is the amount of NXM that can still be staked against each protocol before reaching the Global Capacity Limit:
Anchor Protocol: 132,638 NXM can still be staked to create open capacity.
Alpha Homora v2: 369,014.7 NXM can still be staked to create open capacity.
New Listings
Below, members can find information for the three protocols listed above:
Platypus Finance
Beefy Finance
Angle Protocol
Review these protocols, determine if you would like to stake NXM against any or all of them, and create open capacity for members to purchase cover, while earning a share of premiums for every policy sold!
Nexus Mutual Documentation: Additions and Revisions
Mutant Meetup Calls Archive
We host our Mutant Meetup community calls every Tuesday at 10am EST / 2pm UTC, but we know not everyone can join us for our weekly calls. Each week, we share the recording for the call in the Nexus Discord and through the Nexus Twitter account.
Members can now find the Mutant Meetup archives in our documentation here.
Whether you join us on the call or listen to the recording every week, you can always find our archive in the docs with the latest recording added every week.
Annotated Protocol Cover Wording
Each of the mutual’s products have cover wording that is intended to be written plainly, but often times, we see questions across our social channels regarding what is and what is not covered for each product.
To increase transparency, we will be adding annotated cover wording for each offering in our documentation, so members can have greater insight on what evens are covered and what events are not cover, as well as the why behind why we cannot cover certain loss events.
Annotated Protocol Cover Wording (v1.0) is live in the Nexus documentation.
Claims History
The Claims History section of the documentation has been revised, as well, to provide greater insight into claim outcomes and past claim events. On the first page, there is a detailed account of the claim outcomes for all claims filed in 2021.
We will be adding claim outcomes for other years shortly, as well. While all claims can be audited on chain, this resource will give members or people interested in the mutual’s past decisions greater insight into the Claims Assessment process.
Transparency is important to members of the mutual and that is why we are striving to make it easier for members to review claims, analyze the outcome of past claim events, and understand how the mutual solves the principal-agent problem through our secure Claims Assessment design.
Mutant Meetup Call | 15 March 2022
If you missed the Mutant Meetup call from the last week, you can listen to the recording here.
Weekly Close
This week, we’ll be hosting:
Our Mutant Meetup call on Tuesday (22 March) at 10am EST / 2pm UTC on Discord in the Community Calls Voice channel.
You can follow the Nexus Mutual Twitter account for regular updates and communication from the mutual, and you can follow the Nexus Mutual Bot Twitter account to stay up to date on cover buys as they happen.
Have a great weekend and week ahead 🐢