Welcome to the twelfth issue of The Hedge.
This week, we bring you the latest updates on Euler Finance, FTX, and Sherlock claims; Hugh’s recent discussion with Tommy Shaughnessy and Robert Forster; changes to the Nexus Mutual V2 documentation; recent governance discussions; and an update from the Foundation team, where Hugh shares the major milestones ahead for the mutual.
Let’s dive in.
Updates on Euler Finance, FTX, and Sherlock claims
In recent weeks, there has been new information about FTX, Euler Finance, and Sherlock claims.
Euler Finance announced a reimbursement plan
Sherlock paid a $50,000 for Sentiment and they filed an Excess Cover claim with the mutual
Kroll has sent FTX users information regarding their account balances
In the sections below, we provide information about each of these updates. Before we do, let’s recap the approved claims and payments for these events.
Overview of Claims and Payouts
💸 $2.39m was paid out for Euler Finance Protocol Cover claims
💸 16,425.26 was paid out for Sherlock Excess Cover for the Senitment exploit
💸 $4.92m was paid out for FTX claims
Euler Finance Reimbursement
The Euler Foundation worked with their community to determine a reimbursement plan. On 11 April, Euler announced that the final reimbursement plan was on the forum and affected users could claim their reimbursement.
Members who filed a Euler Finance claim and redeemed a payout agreed to the following terms:
By making a successful claim and receiving a payout (i.e., reimbursement) from Nexus Mutual, you agree to send your eToken and dToken balances to the Nexus Mutual DAO Treasury (0x586b9b2F8010b284A0197f392156f1A7Eb5e86e9) on Ethereum mainnet. In doing so, you give rights to any potential reimbursements from Euler Finance—including any reimbursement tokens that the Euler team may decide to distribute in the future—to Nexus Mutual once your claim has been approved.
The DAO Community team provided the Euler team with language that has been included in the Euler reimbursement UI, a sample of which is included below.
The Community team has worked with the Foundation to notify all members who redeemed a Euler Finance claim payment that they can return their claim payment to the DAO treasury. To date, six Euler Finance claimants have returned 1,720,206.83 DAI and 119.721842 ETH ($1,959,773.82) to the Nexus Mutual DAO treasury, per the above agreement. This represents an 81% recovery rate for Euler Finance claim payments.
Three Euler Finance claimants have yet to return their claim payments. Of the three, only one has claimed their reimbursement from Euler Finance.
The member who redeemed a Euler Finance claim payment for Claim V2 4 has also redeemed their reimbursement from Euler Finance.
Members have discussed this on Discord, and after various members asked Hugh for potential avenues to pursue the return of these funds, Hugh shared:
If any members want to discuss this further, they can create a discussion on the Nexus Mutual governance forum and follow the governance process outlined in the documentation.
The Community team will continue to reach out to those who have not yet returned their claim payments and work to achieve the highest recovery rate for Nexus Mutual members.
Sherlock Pays $50,000 for Sentiment Hack, Files Claim for $16,425.26
Recently, Sentiment was exploited for $1.1m due to a vulnerability in Balancer LP prices. With the help of the Sherlock team, Euler team, and others, Sentiment was able to recover 90% of the funds from the exploit.
Sherlock provided coverage to Sentiment for $65,000, which they provided an initial payment of $50,000. The Sherlock team then filed an Excess Cover claim for $16,425.26, which was approved. Once redeemed, these funds will be sent to the Sentiment team to make their users 100% whole.
Forwarding Kroll’s Responses for FTX Claims Filing
Kroll Restructing, the firm handling the FTX bankruptcy, has sent official emails confirming FTX users’ loss amounts at the time withdrawals were halted.
Any members who were waiting on proof of loss information from Kroll can now complete the account verification process. Once those members verify their account ownership, they can proceed to file their claim.
You'll need to verify your account by sending an email to the claims@nexusmutual.io with the following:
Full name
Membership address
Cover ID
Unique Customer code
Copy of Kroll email
This information will only be used to verify your account ownership and will not be shared publicly.
Once your account has been verified, you will be able to file a claim in the Nexus Mutual UI.
For more information on FTX claim payments to date, see the entry in the Nexus Mutual documentation.
FTX Bankruptcy and Reimbursement
Members who filed a claim and received a payout agreed to the following terms:
By making a successful claim and receiving a payout (i.e., reimbursement) from Nexus Mutual, you agree to give rights to any future reimbursements from the FTX bankruptcy proceedings — including any future reimbursement tokens distributed as part of the FTX bankruptcy settlement — to Nexus Mutual, per the recoveries provision in Section 3 in the Custody Cover wording: https://nexusmutual.io/pages/CustodyCoverWordingv1.0.pdf.
The Community team is in the process of working with members who received claim payouts to transfer the bankruptcy claims to the mutual, so any future reimbursement can be returned to the capital pool.
Updates to Nexus Mutual V2 Documentation
With Nexus Mutual V2, members can enjoy exciting features and greater flexibility. There’s no place better to grasp the multi-faceted advantages than the Nexus Mutual V2 Documentation. For a great start, head here.
The following Nexus Mutual V2 Documentation pages were updated:
Protocol Cover, Custody Cover and Excess Cover
✅ Total claims paid amounts per product are updated.
🔃 The overview of the claims filing process will be improved soon.
✅ Total claims paid to date figures are updated.
The above updates were made to reflect the following claims filing processes:
🛡️ As part of claims filing for FTX, $4.92m was approved and paid to members.
🛡️ As part of claims filing for BlockFi, $30,574 was approved and paid to members.
🛡️ As part of claims filing for FTX, $2.39m was approved and paid to members.
Hugh Karp talks Nexus Mutual V2 on the Delphi Podcast
Hugh joined Robert Forster of Ease and Tommy Shaughnessy of Delphi Digital for a discussion about:
The future of crypto insurance
How Nexus Mutual V2 changes the decentralized insurance landscape
The current state of DeFi coverage
How coverage can scale in the future
Hugh spoke about Nexus Mutual V2, how the protocol can scale to protect more people, and where the mutual is heading in the coming years.
Tune in here 🎧
An update from Hugh & the Nexus Foundation Team
From the Community Call on 11 April at the Nexus Mutual Discord, Community Calls Voice Channel
Nexus Mutual V2 continues to be part of the Foundation Team’s agenda. Following the launch few weeks back, the team has been busy incorporating the first feedback from our community and fixing bugs. We’ll continue to improve some user journeys in the coming months, such as staking. Also, some big features like cover edits will be released soon.
With the capacity freed from Nexus Mutual V2 work, the mutual’s engineering team started deep diving into the Tokenomics details. Once they come up with a technical implementation concept and the overall architecture, we will have it easier to see whether the model needs any tweaking or fine-tuning, especially in parameter setting. Members interested can take a look at Rei’s latest forum post to learn more.
The team has seen a lot of inbound demand from people and teams interested in ETH Staking Cover and launching new staking pools. With a major part of Nexus Mutual V2 development done, the team has the bandwidth to focus on building traction, not only for the mutual itself, but also for all parties building on top of the mutual.
Exciting times ahead!
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
Members continue to actively discuss several proposals. You can review and get involved in the following active discussions on the governance forum.
Members are continuing to discuss Tokenomics Design Details, with further discussion about the potential impacts on capital efficiency.
Moss from Avantgarde Treasury proposed to restart the Enzyme vault with a diversified ETH staking strategy. They have requested feedback and comments from members.
Chris from the Ease Protocol team has elaborated on their claim filing experience recently and shared the Ease team’s feedback for the Claims Assessment process.
Jeremiah, one of the co-founders at OpenCover, requested feedback on the Blue Chip Protocol Staking Pool they have launched in partnership with DeFiSafety.
Review, comment, and get involved in the Nexus Mutual governance process!
The Last Week in Review | 3–9 April 2023
In the last week, the mutual sold $4.4m USD worth of cover and earned $5.8k USD in fees, as outlined below.
Active Cover as of 10 April 2023
Total active cover stands at $88.7m with active coverage by cover type as follows.
Up Next
Don’t forget to follow the Nexus Mutual Twitter account and Nexus Mutual Lens account for regular updates and communication from the mutual.
Have a great 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 Dune Dashboard for Capital Pool and Ownership, created by Nexus Mutual R&D and Marketing teams
Nexus Mutual Dune Dashboard, created by Richard Chen
The analytics dashboards that work with Nexus Mutual V2 haven’t been finalized yet. For a limited time, members are not able to track cover buys in real-time. We apologize for any inconvenience.
Nexus Mutual’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.