Nexus Mutual Newsletter | 5 October 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
The mutual’s total active cover stands at $185,370,784 | 136,697 ETH. Members can review two active proposals on the forum and the outcome of the two recent Snapshot votes. Execution of Proposal 180 in motion, with some new developments outlined below.
Highlights
Community Call on 4 October
Nexus Mutual Discord, Community Calls Voice Channel
On this week’s community call, BraveNewDeFi went over the highlights and governance proposals, followed by Hugh’s team update.
The engineering team continues to work on the remaining components for Nexus v2, which include the staking module and the v2 frontend. For the latter to be finalized, the staking contract work needs to be completed. Nexus v2 development is still the team’s first priority.
The Tokenomics Working Group, led by Rei, is continuing to progress toward a polished model that will be presented on the forum in the coming weeks. This week, Rei and the group are working to structure the documentation on the progress and the findings to later present to community. Hugh touched upon the two theoretical subsections the group has been working to refine—the locked capital needed for underwriting and the excess liquidity that will enable members to exit their NXM positions. Make sure to peek into the #tokenomics-revamp channel on the Nexus Mutual Discord to learn more. Anyone interested in reviewing the current model can message Rei on Discord for more information.
Hugh shared that he has recently presented to the Bank of Canada, and they were knowledgeable and direct with their questions. They’ve been meeting with other DeFi protocols to better understand the ecosystem. Hugh has also talked to a variety of traditional reinsurers who have expressed interest in operating syndicates (i.e., businesses build on top of the mutual) after Nexus V2 launches. During those conversations, many noted the parallels between Nexus V2 and Lloyd’s of London. In addition to these conversations, the team has reached out to other DeFi teams who have also expressed interest and enthusiasm for building on top of Nexus Mutual once V2 launches.
From Hugh’s update, it is clear that there’s growing interest from traditional market participants in both DeFi and Nexus Mutual.
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 Proposals
Forum proposal: 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
Pease note that SAFE is currently non-transferable and that Vincent’s goal is to discuss how the mutual will use our SAFE holdings and to acheive soft consensus on what to do with the SAFE once it does become transferable.
Vincent will transition this discussion to Snapshot vote after a review and discussion period.
Forum proposal: Safe Guardians | BraveNewDeFi acting a SAFE delegate, representative for Nexus Mutual in SAFE governance
BraveNewDeFi has nominated himself to represent the mutual in SafeDAO governance using the mutual’s SAFE holdings, which have yet to be claimed. The mutual has a total of 141,994.66 SAFE that is claimable across two multi-sigs. Half of this SAFE will vest over 4 years, while the other half will can be claimed.
BraveNewDeFi highlights the alignment between SafeDAO and Nexus Mutual:
Both Safe and Nexus Mutual provide critical infrastructure for web3 users. SafeDAO is driving smart contract accounts as a standard for owning assets, data and identity, and Nexus Mutual is setting the standard for decentralized protection with our comprehensive cover and continued innovation.
The desired outcome for Safe and Nexus Mutual is the same–to onboard the next wave of web3 users, while ensuring their assets are safe and secure.
This proposal is open for review and discussion. BraveNewDeFi will transition this proposal to a Snapshot vote on Thursday (6 October).
Snapshot vote approved: Buyback $wNXM with $LDO and $GAL
Long-time Nexus Mutual member Vincent Weisser transitioned his discussion about using LDO and GAL for wNXM buybacks to a Snapshot vote that was open for voting from 26 September until 2 October.
Members unanimously approved this proposal with 7.1k NXM voting to use LDO and GAL to fund wNXM buybacks below book value. Execution plans will be announced soon.
Vote approved: Should we give BootNode a grant to begin development on the ERC-4626 compliant covered vault project?
Leo Lower had previously posted more on the second phase of the grant proposal to develop an ERC-4626 compliant vault that would enable a vault to purchase Nexus Mutual coverage on behalf of all users.
Leo outlined the deliverables, timeline, and requested budget for the development phases of this project:
Deliverables: Open Source repository with all the code, scripts and documentation needed for deployment and configuration of new Nexus Covered Vaults; AND test code.
Timeline: This project should take between 8 and 11 weeks of work.
Budget request: 50,000 USDC paid in two installments; AND 1450 wNXM upon completion.
The Snapshot vote was open for voting from 26 September until 1 October. Members unanimously approved this grant proposal with 3.9k NXM voting to approve.
ETHW Update
Members had previously approved Proposal 180: sell the mutual’s ETH PoW assets via on-chain governance. The team is currently planning the execution of the ETHW sale.
Whitehat disclosure, rescue | ETHW funds secure
In the last week, the team received a vulnerability report from a whitehat through Immunefi that was specific to the PoW chain. After receiving this report, the engineering team and whitehat worked together to rescue the funds from the ETH PoW capital pool contract. There will be a blog post outlining the vulnerabilty disclosure and whitehat rescue within the next week.
The mutual’s ETHW assets are now held in this address on the PoW chain.
Additional ETHW sent by Maven 11
The mutual invested 15,348 ETH in the Maven 11 wETH lending pool on Maple Finance in August 2022. When the merge happened and the ETH PoW hardfork occurred, the ETHW for those funds were distributed to the lenders who borrowed wETH from the Maple lending pool.
The Maven 11 team was able to send the mutual 13,857 ETHW. The remaining ETH wasn’t held by a borrower at the time of the hardfork, so the Maven 11 team wasn’t able to retrieve those funds.
The mutual now holds a total of 114,135.75 ETHW.
The Last Week in Review | 26 September–2 October 2022
In the last week, the mutual sold $3.9m USD worth of cover and earned $22k USD in premiums, as outlined below.
Active Cover as of 2 September 2022
Total active cover stands at $191m | 147,953.01 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.