The Hedge | 23 February 2023

Brought to you by the Nexus Mutual DAO

BraveNewDeFi

Feb 23, 2023

Welcome to the fifth issue of The Hedge 🛡️

In this issue, we bring you the latest on Nexus Mutual V2, the tokenomics signaling vote results, and more.

Let’s dive in.

Timeline for remaining Nexus Mutual V2 upgrades

The Nexus Mutual V2 launch is right around the corner!

Over the next two weeks, the final Nexus Mutual V2 upgrades will take place. Ahead of these upgrades, we wanted to provide members with a timeline.

Nexus Mutual V2 smart contract deployment | 27 February 2023 through 5 March 2023
Nexus Mutual UI updated and contracts migrated from V1 to V2 | 6 March 2023 through 10 March 2023

For more information, read the announcement on the Nexus Mutual blog.

Pausing claims filing during Nexus Mutual V2 upgrades

When the engineering team starts deploying the V2 contracts on Monday (27 February), members will not be able to file claims. To complete the upgrade from V1 to V2, claims filing will need to be paused.

If you haven’t yet filed your claim, you can do so until Monday (27 February). Anyone who plans to file a claim but cannot file before Monday will be able to file their claim once Nexus Mutual V2 is live.

If you have any questions about claims being paused, please contact the Community team in the Nexus Mutual Discord.

Blockworks covers Nexus Mutual’s FTX & BlockFi claim payouts

On Friday (17 February), Blockworks published an article titled Nexus Mutual Pays Out Over $5M to FTX, BlockFi Users, which highlighted the recent claims that members reviewed and approved.

Hugh shared his belief that the crypto industry cannot rely on government agencies to protect users.

“Instead we must build our own solutions,” Karp said. “Nexus Mutual paying FTX and BlockFi claims demonstrates that not only can it be done, but community-built solutions are much more effective.”

Hugh Karp 🐢 @HughKarp

We can't rely on traditional government agencies to protect us. Crypto must build it's own solutions. Proud to see @NexusMutual paying out FTX and BlockFi claims.

blockworks.coNexus Mutual Pays Out Over $5M to FTX, BlockFi UsersNexus Mutual is issuing payouts to FTX and BlockFi users who filed claims several months after the now-bankrupt companies halted customer withdrawals.

Tokenomics Snapshot signaling vote results

Over the last month, members have reviewed and discussed two proposals that recommended changes to Nexus Mutual's bonding curve and tokenomics.

To gauge members' support for either proposal, a non-binding signaling vote was created. Voting ended on Wednesday (22 February) at 9am EST / 2pm UTC. Members voted 98.49% in support of Option A: Ratcheting AMM design.

Now that the vote has concluded, Rei shared the immediate next steps on the forum following the signaling vote.

…[W]e need to complete two parallel strands:
Technical development. The Engineering team would develop the smart contracts necessary to implement the chosen proposal. This would include writing the smart contracts, testing, and audits of the design.
Determine parameters of the chosen design. Members will discuss and select the initial parameters for the chosen design and approve the implementation through an on-chain vote for the final protocol improvement proposal.
The next milestone will be to create a specification document that can be handed to the engineering team - hoping to do this within a month.

For more information, read Rei’s post on the forum.

Nexus Mutual at ETH Denver

Nexus Mutual is coming to ETH Denver! BraveNewDeFi will attend ETH Denver between 2–5 March.

Any members or teams planning to attend that would like to connect can reach out to BraveNewDeFi on Discord or Twitter.

Community member’s article in HackerNoon on the earthquake response in Turkey

Our community manager Sem, who is based in Turkey, wrote an article in the aftermath of two devistating earthquakes. Before We Forget Again: What We Learned from the Turkey Earthquake Response was published on HackerNoon on Tuesday (21 February).

Nexus Mutual members come together to share risk and protect each other. Sem’s account is a reminder that our community is truly global. I wanted to highlight this article and recommend it to other members.

Thank you, Sem, for sharing your experience with us 🙏

Governance forum discussions

Members continue to actively discuss proposals on the forum. There are several important discussions happening now, including the WNXM buyback discussion. Once there is broad consensus on the direction, this can transition to a formal protocol improvement proposal.

The Investment team members have several request for comment (RFC) discussions posted on the forum. You can find a link to each discussion below:

Review, comment, and get involved!

Community Call on 22 February

Nexus Mutual Discord, Community Calls Voice Channel

On this week’s community call, I reviewed the community highlights and Hugh shared the Foundation update for the week:

Hugh highlighted Claim 164, which expired the day before the halted withdrawals announcement went out. As a discretionary mutual, members can use discretion when assessing and approving claims. In this case, the member suffered a loss and was unable to withdraw. By using discretion, Claims Assessors voted to reimburse this user and $50,000 was paid out.
In the next week, the Advisory Board (AB) will be putting various proposals on chain that are necessary to launch the V2 contracts/components. Members previously granted the AB power to launch V2 in stages, so the AB will whitelist and vote on these proposals in the coming week. You will be able to see these proposals in the Nexus Mutual user interface.
The Foundation has been working to onboard more staking pool managers, who will launch staking pools after Nexus Mutual V2 is live.
The Foundation has received inquiries from traditional insurers, who are interested in working with the mutual to underwrite a portion of their risk and explore the potential to launch a staking pool and offer new products.

The Foundation teams are busy preparing for Nexus Mutual V2 and working to onboard more risk experts ahead of launch.

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.

The Last Week in Review | 13–19 February 2023

In the last week, the mutual sold 19.7m USD worth of cover and earned $63.7k USD in fees, as outlined below.

Active Cover as of 20 February 2023

Total active cover stands at $147.6m with active coverage by cover type as follows.

You can review total active cover and active cover by cover product on the Nexus Mutual Dune Dashboard created by Richard Chen.

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. You can follow the Nexus Mutual Bot Twitter account to stay up to date on cover buys as they happen.

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.