New Listings
The Product & Risk team is working hard to add new Protocol Cover listings. We know members like you are always looking for a variety of protocols to farm incentives and earn yield, which is why we’re expanding our listings to ensure you can cover your crypto assets no matter where you’re earning yield in DeFi.
In the last several weeks, we’ve added eight (8) new Protocol Cover listings, which include:
Gearbox v3 Protocol Cover. With Gearbox v3, you can deposit ETH or USDC into their Passive Earn lending market to earn double digit yields on Etherum or Arbitrum, or you can farm points and yield using their one-click leverage strategies. Right now, Gearbox has EigenLayer and Etherfi points farming strategies and USDe points farming strategies live, which are driving demand ETH and USDC lenders.
fx Protocol Cover. With fx Protocol, you can deposit ETH and create ETH derivative assets, one with stablecoin-like low volatility and the second a leveraged long ETH perpetual token.
Camelot Protocol Cover. Camelot is a highly efficient and customizable protocol, allowing both builders and users to leverage our custom infrastructure for deep, sustainable, and adaptable liquidity. Camelot moves beyond the traditional design of DEXs to focus on offering a tailored approach that prioritises composability.
Arrakis Protocol Cover. Arrakis is a liquidity management protocol built on top of Uniswap V3, where LPs can utilize Arrakis Vaults to have their liquidity be managed in an automated, capital efficient, non-custodial and transparent manner.
We’ve also listed other popular protocols and some firsts for the Mutual.
Prisma Protocol Cover. Prisma is a decentralized borrowing protocol that allows users to mint a stablecoin, mkUSD, that is fully collateralized by liquid staking tokens.
pxETH Protocol Cover. Pirex ETH is an Ethereum liquid staking solution that forms the foundation of the Dinero protocol. It is a two-token system, consisting of pxETH and apxETH, tailored for different user preferences. This design gives users a choice: pxETH for liquidity + yield opportunities and DeFi yields or apxETH for boosted ETH staking yield.
NFTperp Protocol Cover. nftperp is an open-source DeFi platform enabling users to trade on the price of NFT collections like BAYC and CryptoPunks using perpetual futures contracts, with all transactions in ETH. Currently in Private Alpha release.
Beethoven X Protocol Cover. Beethoven X is a next generation decentralized investment platform built for the future of finance, which is based on the Balancer v2 smart contracts. Beethoven X is a friendly Balancer v2 fork on Optimism.
NMPIP-213: Update PRICE_CHANGE_PER_DAY from 0.5% to 2.0%
The Proposal
On behalf of the Foundation, Hugh Karp is proposing that members increase the PRICE_CHANGE_PER_DAY parameter from 0.5% to 2.0%.
This parameter determines how fast the cover prices drops over time after someone buys cover. Dynamic pricing plays an important role in controlling the Mutual’s exposure to risk by ensuring cover products with high demand capture more value for members if there’s a rush to buy cover. As cover pricing increases in response to an increase in demand, cover buys are also spread about various staking pools underwriting the risk. Now that the market has turned bullish, we’re seeing more demand for cover but longer wait times because it takes too long for cover to drop in price.
The downside of a slow price change means potential cover buyers have to wait, sometimes 1-2 weeks for the price to decay back down to a price they are willing to pay for cover. This means the staking pool manager is willing to sell cover and the cover buyer is willing to buy at a certain price but the system won’t allow them to match the “trade”.
Theoretically, keeping a slower decay speed allows the Mutual to capture more value on a single cover buy, as the price someone pays might be slightly higher on average.
In the bear market with relatively infrequent cover buys, users only occasionally noticed the downside. However, in recent weeks there have been several instances where there was demand for popular Protocol Cover products, like Pendle, but the price at which cover buys were willing to pay wasn’t reached for a week. These members were willing to purchase Protocol Cover but the slow price decay delayed their cover buy. In some cases, we could be missing cover buys because of this poor UX. This is important to note as yields continue to rise as we approach what could be a faster moving bull market.
If members vote to approve NMPIP-213, the PRICE_CHANGE_PER_DAY parameter in the StakingProducts smart contract will be updated from 50 to 200 programmatically after the 24-hour cool-down period passes once the vote closes.
NMPIP-213 will be open for voting between 14 and 16 March.
👉 Vote now in the Nexus Mutual UI!
Learn More
Hugh briefly presented his proposal at the Nexus Mutual Community Call on 5 March 2024. For more information about this proposal, see the NMPIP-213 proposal on the forum. To learn more about the Mutual’s pricing model, you can review the Pricing section in the Nexus Mutual documentation.
From the Ecosystem: OpenCover Updates
OpenCover, a coverage platform built on top of Nexus Mutual, continues to expand access to Protocol Cover on L2s like Base, Arbitrum and Optimism. You can buy the same comprehensive Protocol Cover on L2s through OpenCover with lower gas fees and no KYC.
dHedge Partnership
Earlier this month, OpenCover partnered with dHedge and offered users up to $150,000 in free dHEDGE Protocol cover with a limit of $10,000 per user. dHedge features OpenCover in their UI, so users can buy cover at the point of deposit. With popular vaults like the Perpetual Delta Neutral Yield strategy, dHedge users can earn 60%+ APY on stablecoins and cover their deposits for an annual cost of 3.51%.
Pendle Partnership
On Wednesday, OpenCover listed Pendle—the permissionless yield-trading protocol where you can earned fixed rate APYs by selling your yield and points, or where you can buy and farm yield and points. Pendle’s TVL has soared to an all time high of $2.53b as DeFi users deposit liquid restaking tokens (LRTs), as well as other DeFi assets, and sell their yield and points. Currently, Pendle offers double digit fixed APYs on LRTs and triple digit yields on USDe. Now users can buy Pendle Protocol cover on L2s, while earning eye-popping yields.
All Protocol Cover Listings Coming to OpenCover Soon!
The OpenCover team is in the process of adding every Protocol Cover product offered on mainnet, so people can buy cover for any product on L2s to safe on gas costs and reach new users. By reaching users where they’re transacting and depositing on L2s, OpenCover can help grow the Mutual’s cover sales and tap into an entirely new audience. Follow OpenCover on Twitter and keep an eye out for updates!
Introducing the Covering DeFi Interview Series
The DAO Community team will be hosting interviews on Twitter / X with DeFi builders, security experts, and protocol teams on a two-week cadence over the next quarter. Our goal is to create a long-term interview series, where we can talk with everyone active in DeFi—including users and up-and-coming protocols.
We want to cover topics that our members find engaging and valuable, so we can build a more active community within the Mutual. This is the motivation behind Covering DeFi.
On Wednesday (20 March) at 3pm UTC, BraveNewDeFi will be interviewing Justin Leroux from GridPlus, a company that develops cutting edge secure hardware for cryptocurrency and other digital assets. During our interview, we'll talk about wallet security, blind signing attacks, malicious transactions, and more.
We’ll also be giving away one (1) GridPlus Lattice1 to a lucky attendee!
Be sure to set yourself a reminder and join us on Wednesday for a great conversation.
Nexus Mutual Community Calls are now on X!
The DAO Community team is working to reach our members where they are most active and provide members with regular updates about the Mutual and how to become more active within the community. To reach the most members and users, we have moved our community calls to X and are now hosting Spaces events with team members and ecosystem partners every two weeks through the Nexus Mutual X account.
For those unable to attend live, past recordings are available on the Nexus Mutual YouTube channel.
We hope you’ll join us on our next community call. For our regular attendees, we look forward to seeing you on our next Community Call on X on 19 March 2024!
FTX Reimbursement Update from The Foundation
Since FTX claims were paid in early 2023, the Foundation has been working through the bankruptcy and reimbursement proceedings. The majority of FTX bankruptcy claims have been assigned to Nexus Mutual, and we’re seeing reimbursements starting to flow back to the Mutual.
To date, the Mutual has received $1.68m in USDC as reimbursement from FTX. The majority of these funds are held in a multisig controlled by the Advisory Board members 2. As part of the Cover Re deal execution, the Capital Pool will track the value of assets held in this multisig, which will include the USDC received as part of the recovery process.
Per the mandate established in NMPIP-205 3, the Foundation has been purusing reimbursement for FTX claims.
The Foundation estimates that the Mutual will be able to recover at least $2.48m, which represents 50% of the total claims paid to members affected by the FTX collapse.
As the Foundation receives more information, updates will be shared on the governance forum.
Join Governance Reading Group’s Discussions
Progressive decentralization is one of our core objectives for Nexus Mutual. To deepen our team discussions around this objective, we've handpicked a series of pivotal texts that blend insights from both the digital realm and conventional governance structures. We’re reading them in the schedule available in the forum post, and we're open to engaging in further dialogues with anyone else intrigued by our explorations.
By the end of Q2 2024, we're looking forward to presenting some key insights and actionable steps to our community.
Resources
You can find the March updates from the Nexus Mutual community below:
Nexus Mutual is fully transparent. You can verify the information within this newsletter and learn more about the mutual through the resources below:
Thanks for reading!
If you have any questions, reach out to us on the Nexus Mutual Discord.