Nexus Mutual Newsletter | 27 July 2022
This newsletter is brought together by the Nexus Communications team to bring you the latest news and updates from the Nexus Mutual community.
Week in Summary
Many exciting developments to share this week! Last week’s biggest cover purchase was made by StakeWise, who purchased the first ETH2 Staking Cover product that was announced this week. The mutual’s Active Cover Amount stands at $232,001,176 | 163,479 ETH as of 27 July and the Nexus V2 development work is on track, with the engineering team continuing their work on minor audit findings as well as the user interface.
Don’t forget to tune in to our community call in our Discord—join us every Tuesday at 10am EST / 2pm UTC.
Highlights
New Product Announcement: ETH2 Staking Cover
We are happy to announce the launch of ETH2 Staking Cover, the most comprehensive protection against missed rewards and penalties incurred by validators.
With more than 13m ETH ($20B+) staked on the Beacon Chain to power over 400,000 validators, there is growing demand for extensive coverage against ETH2 staking risks. After receiving significant inbound requests to develop ETH2 staking coverage, we worked with leading validator operators to create a policy that is tailored to provide the greatest hedge against penalties, slashing events, and missed rewards.
Last week, StakeWise purchased the first ETH2 Staking Cover policies totaling $8.3m to protect their validator network. We're happy to protect StakeWise against ETH2 staking risks ahead of the merge.
To learn more about ETH2 Staking Cover, head over to the following resources.
If you are interested in learning more about ETH2 Staking Cover and protecting your validators, reach out to us via email at staking@nexusmutual.io or contact us on Discord, Telegram, or Twitter.
StakeWise protecting their users with Nexus Mutual
StakeWise is a liquid Ethereum 2.0 staking service that allows anyone to benefit from the yields available on the Beacon Chain. The StakeWise team purchased ETH2 Staking Cover to protect their validator network.
Nexus Mutual’s ETH2 Staking Cover will protect against any penalties, downtime or slashing that could be experienced by StakeWise or its node operators as a result of infrastructure and setup failure. It will also cover for the loss of staking income from the slashed and exited validators, until 17 October 2022. This will ensure that stakers’ income will be minimally affected by the slashed and exited validators.
Our community is proud to work with the StakeWise team and protect their validators against slashing risk with coverage from Nexus Mutual. For more information, you can read the StakeWise announcement below:
Hugh joins EY FinTech Beyond Borders Podcast
Hugh Karp was on this week’s episode of the EY FinTech Beyond Borders Podcast, joining Hesus Inoma, Sharon Chen, and Pete Townsend.
This was a great discussion on how DeFi can solve real world problems and provide greater access to financial tooling. Hugh shared the role that Nexus Mutual plays in provider greater access to decentralized coverage.
You can listen to this episode on Apple Podcast or Spotify.
Mutant Meetup Call | 26 July 2022
Nexus Mutual Discord, Community Calls Voice Channel
During the call, our host Lee / BraveNewDeFi provided the highlights and updates from the last week. Members had an in-depth introduction to the new ETH2 Staking Cover product. As Hugh was on leave, BraveNewDeFi also shared the latest core team updates: the engineering team is nearing the end of the audit process and addressing some minor comments. The team has started with UI development for Nexus V2 as well. As will all other weekly community calls, we reviewed the cover sales within the last week and heard a summary of the latest governance proposals, which included a proposal to restructure the Hubs model to accommodate for the new set of abilities Nexus V2 will introduce.
If you couldn’t join us on the call this week, you can listen to this week’s call recording on the Nexus Mutual YouTube channel.
Governance Proposals
Withdraw the Community Fund capital from Bancor
In light of the recent deactivation of Impermanent Loss (IL) protection and Liquidity Mining (LM) rewards at Bancor, the Nexus Mutual Investment Team and Community Fund members proposed to withdraw the funds worth 51,523 bwNXM (50k wNXM originally deposited) from Bancor V3.
This proposal was posted on the forum on 20 July and it transitioned to a Snapshot vote, which was open for voting between Thursday, 21 July 2022, and closed on 24 July 2022. Members voted 100% in favor to withdraw from Bancor V3.
Reimburse Risk Assessors for Undue Loss from Claim 113
Robert M.C. Forster of Ease (formerly, ArmorFi) posted a proposal on the forum to seek reimbursement for Risk Assessors who had NXM burned to facilitate Claim 113: a 5,000,000 DAI claim payout. The member who filed Claim 113 provided proof of loss that demonstrated a $1.4m loss, but due to the technical limitations present in Nexus V1, partial payments cannot be made, so the full covered amount was paid out to the member who filed Claim 113.
The original proposal was posted on the forum on 30 May and an update was posted on 7 July. The Snapshot vote will remain open between Monday, July 25, 2022 and Saturday, July 30, 2022.
Members can review and cast their vote on Snapshot this week.
Allocating $ldo $cream $gal from community fund to buyback $wnxm
Vincentj posted this proposal on the forum on 24 July Currently, the proposal is open for review and discussion among members.
Nexus Hubs V2 Proposal
BraveNewDeFi posted the proposal prepared by Nexus Mutual DAO contributors Kayleigh, BraveNewDeFi, Dopeee, Rei, Claudio, Chris, and Yuba on the forum on 26 July.
This proposal outlines a restructuring of the Nexus Hubs model to expand the mandates of both Nexus Communications (formerly, Mutant Marketing) and Nexus Investment (formerly, Investment Hub) and provides a 6-month budget request.
This proposal is open for discussion among members and will transition to a Snapshot vote on 2 August.
Nexus Hubs: Proposed Teams, Priorities, and 6-month Budget Breakdown
In conjunction with the Nexus Hubs V2 Proposal summarized above, BraveNewDeFi posted a follow-up proposal on the forum underlining current priorities as well as each hub’s 6-month budget breakdown. This forum post is part of the broader proposal outlined above.
Nexus Treasury Multi-Sig: Replace Krugman as a Signer
One of the mutual’s current Nexus Treasury (formerly, Community Fund) multi-sig signers Krugman has requested to retire as a multi-sig signer, and Dopee has put himself forward as a potential replacement as a Nexus Treasury multi-sig signer.
This proposal was posted on 25 July and is open for review and discussion. The proposal will transition to a Snapshot vote on 1 August.
Nexus Covered Vaults (Discovery Phase)
The BootNode team has requested a grant to to design an ERC-4626 compliant vault that takes an existing ERC-4626 compliant vault (e.g. Yearn) and purchases Nexus Mutual coverage on behalf of all users, with coverage effectively being paid from the yield. A bundled yield-bearing plus covered vault.
This proposal was posted on the forum on 14 July and will proceed to a Snapshot vote on 1 August.
Nexus Mutual by the Numbers
Last Week in Cover Sales
In the last week, the mutual sold $12.7m USD worth of cover and earned $83k USD in premiums, as outlined below.
Active Cover as of 25 June 2022
Total active cover stands at $232.4m USD, with active coverage by cover type as follows.
Protocol Cover
Custody Cover
ETH2 Staking Cover
Yield Token Cover
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 10am EST / 2pm 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’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord as well as Telegram.