Welcome! This special issue is dedicated to the full launch of the DeFi Pass Cover on Base. With new whirlwinds reshaping the DeFi landscape, the DeFi Pass arrived just in time to help us stay safe in DeFi. We congratulate our partner, OpenCover, on the successful launch!
Read on to hear Jeremiah’s (OpenCover CEO) thoughts on the launch, the product, and our partnership.
All About the Base DeFi Pass 🗳️
The Base DeFi Pass, developed in partnership with OpenCover, is a first-of-its-kind cover that protects users across the 8 major protocols and their sub-protocols on Base. With the Base DeFi Pass, users can purchase a single cover and enjoy the flexibility to move assets between different covered protocols while maintaining protection for their onchain assets.
Nexus Mutual’s partnership with OpenCover has enabled Mutual members to provide the underwriting capital needed for OpenCover to bring this product to retail users. With every Base DeFi Pass sale, members staking NXM in pools underwriting this listing earn NXM rewards, while the Capital Pool grows. OpenCover continues to be a valuable ecosystem partner for the Mutual.
Let’s hear it from Jeremiah. Jeremiah is OpenCover’s Founder & CEO and has been instrumental in establishing a strong partnership with the Mutual.
Sem Turan (Nexus Mutual DAO): Hello Jeremiah! Thank you for joining us. Let’s start with the basics. What is the Base DeFi Pass?
Jeremiah Smith (OpenCover): The Base DeFi Pass is the first all-in protection against protocol hacks on Aerodrome, Beefy, ExtraFi, Morpho, and five other leading protocols on Base, accounting for ~80% of Base TVL. It starts at $5 a month and is truly the easiest it’s ever been to participate in DeFi while protecting oneself from protocol risk.
ST: How did the idea to build a DeFi Pass come about? What pain points have you removed for users with the Base DeFi Pass?
JS: The OpenCover met with the Nexus Mutual team to discuss new potential products around February 2024, and one clear user demand experienced by OpenCover was for simpler cover products that could cover multiple protocols at once. After this initial brainstorm, formal work started around August 2024.
Before the Base DeFi Pass (and Bundled Protocol Cover), users had to purchase multiple covers if they held positions across multiple DeFi protocols, or even within a single position in a protocol that uses other protocols in its underlying yield strategy (e.g., Beefy + another protocol is very popular). They also had to constantly check whether they were covered across all protocols they used.
For the first time, the Base DeFi Pass brings peace of mind to onchain users by creating a ‘safe set of protocols’ across which they can freely rebalance their funds without having to think twice.
ST: How was the response during the beta testing phase, and what response have you seen from users since the Base DeFi Pass saw its full launch in the last several weeks?
JS: Extremely positive. The Base DeFi Pass has been the most-purchased cover product every week since launch and is in the top 5 by cover amount. We’re also in touch with Base ecosystem partners to help bring protection to more users.
ST: What do you think will drive growth within Base, and within DeFi as a whole? Where do you see Base and DeFi in another year?
JS: There is a strong case that Base will become the #1 Layer 2 EVM-compatible chain by TVL, thanks to the trust, distribution, and engineering power brought by Coinbase. Overall, DeFi should continue to grow across chains and ecosystems as more people discover and adopt self-custody. Exciting times ahead!
ST: How did you first start working with the Nexus Mutual team? How has it been partnering with Nexus Mutual? Where do you see OpenCover and Nexus Mutual next year?
JS: We started collaborating with Nexus Mutual on an onchain savings account alternative around 2021. As far as I know, we pioneered end-to-end contract cover back then, where we protected a chain of composed yield protocols against smart contract risk.
The onchain ecosystem is often driven by short-term thinking and a ‘move fast, break things’ mentality. The Nexus Mutual approach is quite different, which is fundamental when dealing with risk transfer, where trust and reliability are paramount. Overall, working together has always been a pleasure and an honor.
Next year, we hope to launch more products with Nexus Mutual and double down on the distribution wins we’ve seen this year. Our internal target [at OpenCover] is to increase the $20M in protocol cover sold by at least tenfold.
ST: How important is it to build partnerships within DeFi? What role do you see partnerships like this one playing in broader adoption?
JS: DeFi is highly composable, so partnerships are crucial for helping protocols, actors, and services work better together for the benefit of end-users and ultimately to drive adoption. Also, it’s fun!
ST: What advice would you give to other founders considering partnerships in DeFi, based on your experience with Nexus Mutual?
JS: Go for it!
For more information:
🎤 Listen to the latest episode of Covering DeFi with OpenCover
🛡️ Buy the Base DeFi Pass in the OpenCover UI
ℹ️ Base DeFi Pass covered risks and exclusions in the OpenCover Docs
✍️ Introducing the Base DeFi Pass from OpenCover, Powered by Nexus Mutual on the Nexus Mutual Blog
🌐 DeFi Cover Provider Nexus Mutual Backs New Crypto Insurance Broker Native on CoinDesk
Thanks for reading, and see you next issue! 🐢
If you have any questions, reach out to us on the Nexus Mutual Discord.
We look forward to seeing you at our next DeFi Pulse Bi-Weekly call on 26 November 2024 on X.
Take care and stay safe in DeFi!
Resources
If there’s a Protocol Cover or Bundled Protocol Cover listing you’d like to see added, reach out to us on Discord or send us a message through the Contact Form with your request for our Product & Risk Team to evaluate.
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