Welcome to the twenty-first edition of The Hedge!
In this edition, we have curated a comprehensive summary of the recent developments unfolding within the mutual's governance. We kick off by providing a recap of the mutual's key priorities, as well as an outline of the roadmap for the upcoming months. Additionally, we dive into the pivotal product decisions and funding requests that are essential for translating the roadmap into reality. Lastly, we invite you to participate by sharing your comments on the Investment Committee's request for our next investment executions.
Let’s dive in.
Nexus Mutual’s 6-Month Roadmap
Following the successful launch of V2, Nexus Mutual has now set its priorities for the next six months, despite the challenges posed by predicting timelines for technical advancements and the differing timeframes of insurance and DeFi.
The mutual’s main focuses are Growth, Tokenomics, and Progressive Decentralization. You can find more information about these priorities in the Nexus Mutual Roadmap post on the forum and by listening to Kayleigh’s Operations team update.
Each DAO or Foundation team, such as Products and Risk, Engineering, Business Development, Marketing, Community, Research and Development, Operations, and Legal, has specific contributions aligned with the priorities.
The roadmap is scheduled for review in October '23, while funding requests from DAO-funded teams will undergo review in the coming month. Nexus Mutual welcomes members to engage by asking any remaining questions and providing valuable feedback during this process.
Product Strategy
Nexus Mutual teams are dedicated to expanding the mutual and advancing its mission through the implementation of new and innovative risk-sharing products. In line with this goal, Hugh has recently initiated a crucial discussion surrounding the evaluation and listing of new cover product types.
The challenge lies in finding a balance between being permissionless to foster protocol growth and ensuring protection against unwanted risks. While complete permissionlessness is not feasible, there is a desire to keep permissions as light as possible while still safeguarding the mutual from potential attacks.
This discussion aims to gather valuable insights and feedback from members, fostering alignment on the mutual's strategic approach moving forward. Members are encouraged to provide input on strategic approaches, considering dimensions such as broad business line categories, product types, and product listings.
Product Deprecation Decisions
In order to drive further growth, some members of the mutual are advocating for the deprecation of underperforming products with low adoption or excessive risk. Recent discussions among mutual members have focused on the potential deprecation of two products: Custody Cover and Yield Token Cover.
Custody Cover, established in December 2020, has raised concerns regarding transparency and the high correlation among custodians. As a result, BraveNewDeFi proposed discontinuing Custody Cover, which has prompted valuable member feedback.
Similarly, Yield Token Cover, launched in July 2021, has faced limited demand. In response, BraveNewDeFi proposed deprecating this product and intends to introduce the Covered Vaults product as a replacement in the future.
The Nexus Mutual Governance Forum has seen the presentation of BraveNewDeFi's proposals, and now members can participate in the decision-making process by voting on the Nexus Mutual Protocol Improvement Proposal (NMPIP) 193 on-chain. Today, June 12th, marks the final day for voting.
We urge all members to carefully review the proposals and exercise their right to vote, as your input and participation are of utmost importance.
DAO Team Funding Request
It's time to submit another funding request for Nexus Mutual's DAO Teams in Community, Marketing, and R&D. These teams have made and continue to make significant contributions to Nexus Mutual's 6-Month Roadmap, which is detailed both at a high-level and in-depth on the Nexus Mutual Forum.
Over the past two quarters, the existing DAO teams, including Community, Marketing, Operations, R&D, and the Investment Committee, have diligently worked to address members' needs and focused on the priorities outlined in the Q1 & Q2 2023 | Proposed Teams, Priorities, and 6-month Budget Breakdown forum post.
As the current six-month funding period is nearing its end, the DAO team leads have provided a comprehensive overview of the proposed teams, their ongoing priorities, and the breakdown of each team's budget for the next six months. Further details can be found in the Q3 & Q4 2023 | Proposed Teams, Priorities, and 6-month Budget Breakdown, which accompanies this proposal.
We encourage you to review this discussion and share your questions or insights on the Nexus Mutual governance forum.
Investment Request for Comments
There are a number of active RFCs on the Investment section of the forum:
Over the next week, these will be transitioned to a formal comment process ahead of a series of Snapshot signaling votes to indicate…
whether or not, and
how much
…members want to invest in these opportunities.
If any are successful, the Investment Committee will work with the original proposers to set up on-chain member-votes for approval.
Make sure to participate in the signaling votes.
Governance forum discussions
We are excited to share the latest developments in the Nexus Mutual governance forum. Your feedback and engagement throughout this process are highly valued.
Cover product discussions
[RFC]: Update Protocol Cover wording: Since the initial release of Protocol Cover, the Nexus Mutual community, as well as the Foundation and DAO teams, have identified areas that require revision and improvement in the existing version of the Protocol Cover wording. Nexus Mutual members are invited to participate in the review of proposed changes to Protocol Cover and collaborate on the revision of Protocol Cover wording version 1.0 to an updated version 2.0. This request for comments (RFC) will remain open for a minimum of twelve (12) days.
Once the twelve-day period has concluded or members' comments have been addressed, a formal Nexus Mutual Protocol Improvement Proposal (NMPIP) will be proposed to officially update the Protocol Cover wording.
Don’t forget to review and comment on the RFC on the Nexus Mutual Forum!
The new cover products category on the forum serves as a platform for members to discuss current and prospective product types, enabling members to explore each others’ opinions and engage in strategic discussions to boost cover sales while controlling correlation among products. Additionally, it will provide updates on new listings and facilitate discussions regarding potential additions to the listings.
Tokenomics
Rei provided an update on the Tokenomics project last week, sharing important progress details: Rei and the engineering team had a successful week finalizing design details, including the ratchet and liquidity mechanisms. They are satisfied with the system behavior and will now focus on fully testing it through economic and technical assessments, audits, and simulations. Next steps involve finalizing technical specifications and moving towards implementation. Visit Rei’s update for more information!
Staking pools
The Open Cover team has recently unveiled the Nexus Bridge on Optimism, which can be accessed through this announcement. This launch introduces a range of nine (9) cover products, with further expansion in the pipeline.
The Last Week in Review | 5–11 June 2023
In the last week, the mutual sold $6.8m USD worth of cover and earned $7.8k USD in fees, as outlined below.
The weighted average expiry period is 64 days.
Active Cover as of 15 June 2023
Total active cover stands at $59.6m with active coverage by cover type and by staking pool as follows.
For more detailed information about active cover, see the DAO-created Covers dashboard on Dune.
Up Next
Don’t forget to follow the Nexus Mutual Twitter account and Nexus Mutual Lens account for regular updates and announcements from the mutual.
Join us for our next community call on Tuesday (20 June) in the Nexus Mutual Discord! We’ll share the latest updates and provide an open forum for members.
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’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.