BraveNewDeFi’s Pool (Pool 22) Updates | Week of 9 September 2024
Overview
On 3 February 2024, I created and launched Pool 22. As a long-time member and risk researcher, I wanted to create and manage my own staking pool to create a skin-in-the-game factor for myself as I took on more responsibility within the Product & Risk team.
Since I launched my staking pool, I’ve approached cover product development and new listings with a completely different perspective. Managing my own pool has firmly aligned my incentives with the broader Mutual. It’s rare that I advocate for a listing that I would not underwrite myself, as most other pool managers are unwilling to underwrite risks if I’m unwilling to. As the Nexus Mutual ecosystem grows, I expect that trend to change but for now, I know that if I’m unwilling to risk capital staking on a new listings, it’s unlikely others will either.
Since my pool launched, members who have staked and delegated to my pool (including myself, as I have 2750 NXM staked in my own pool) have earned anywhere from 14% to 30% APY, with the median APY around 17-19% since inception.
Exposure
I stake against a variety of listings to diversify Pool 22’s exposure to risk as much as possible, while creating open capacity for numerous listings. My goal is to ensure members can buy cover for many of the Mutual’s listings, though I won’t stake against listings where there has been a lack of historical demand or where I believe the risk doesn’t justify the reward.
As of this week, Pool 22 is underwriting $6,766,369.31 worth of active cover across the listings outlined below.
Data sourced from the Nexus Mutual Covers Dune dashboard
The top six (6) listings by exposure are as follows:
- Aave v3 Protocol Cover: $1,053,323.78
- ExtraFi Protocol Cover: $716,300.01
- Dialectic Moonphase Fund Portfolio Cover: $607,592.67
- EigenLayer + Etherfi Bundled Protocol Cover: $583,293.55
- Arcadia Protocol Cover: $495,152.69
- Dialectic Chronograph Fund Portfolio Cover: $476,984.70
NXM Rewards
Currently, Pool 22’s active cover has netted the pool $31,225.69 in premiums, which are streaming as 469.52 NXM rewards over the covers’ duration.
There’s a total of 20,545.96 NXM staked and delegated to Pool 22, with NXM stakers earning 17.08% APY. At the time of writing, this is the highest APY available for any (public) pool that accepts delegations in the Nexus Mutual UI.
Source: Nexus Mutual Staking UI
The leading six (6) listings that have generated the most premium for Pool 22 are as follows:
- Hyperliquid Protocol Cover: $4,239.86 | 56.16 NXM
- Dialectic Moonphase Fund Portfolio Cover: $3,424.43 | 60.47 NXM
- Dialectic Chronograph Fund Portfolio Cover: $2,822.07 | 49.83 NXM
- GMX v2 Protocol Cover: $2,697.90 | 34.39 NXM
- ExtraFi Protocol Cover: $2,615.75 | 35.53 NXM
- Arcadia Protocol Cover: $2,009.37 | 31.54 NXM
Upcoming Updates
Pool 22 is underwriting the new Base DeFi Pass Cover listings as part of the DeFi Pass product beta testings we’re working with OpenCover on.
Over the next month or so, OpenCover will be granting beta access to participate in testing for the Base DeFi Pass, all-in-one protection across eight leading protocols in the Base ecosystem in just one Cover NFT.
If you’re interested in testing the Base DeFi Pass, you can fill out this form and participate in the beta testing phase of this new product.
Questions
If you have any questions about this update, please comment below or send me a message here on the forum or on Discord (bravenewdefi).
