What is the project
We are building an all-encompassing framework and toolkit which will enable financial advisors to offer Decentralized Finance advice and guidance to their clients in a compliant and safe manner. The toolkit will include:
- Education requirements for DeFi, and for the tech stack we choose
- Compliance and regulatory documentation for the advisor to file with the regulators, and have prepared in the event of an audit.
- Sample agreements to use with clients
- Tech stack including social recovery wallet, accepted protocols, smart contract cover
- Error and Omissions insurance covering the DeFi advice and funds
How will it bring value to the mutual?
Every client of an advisor utilizing the toolkit would have to purchase Nexus Mutual smart contract cover for the wallet, and for any protocols being utilized. We would, therefore, be adding distribution and education, and setting up for the possibility of adding commissions and brokerage.
In addition, we would look to add Nexus Mutual as somewhat of re-insurance, and as a protocol for our Errors and Omissions coverage.
Overall, while we realize this isn’t the typical project seeking treasury funds, we are looking to build a long-term partnership that will onboard so many financial advisors and investors into DeFi with the requirement to use Nexus Mutual smart contract cover.
What problem are you solving?
Currently investors who use a financial advisor are not able to utilize DeFi and have it be a part of their financial plan. This is because financial advisors assume they cannot offer DeFi to their clients for compliance purposes. We are going to create a compliant framework, including tech, education, and insurance, allowing advisors to go straight to DeFi for clients.
Which of the three elements does this project seek to develop and what score from the impact matrix would you give it (eg, Impact 3, Effort 3)? Details:
We hit 2 of the matrix elements.
- Awareness/education - Impact 4, Effort 4 - we are educating financial advisors, who will educate their clients. The effort is partly in getting attorneys to help draft letters, agreements, and guidance for advisors, for us to create the entire education and process, and to build the E&O insurance product the advisors need.
- Distribution/sales - Impact 5, Effort 4 - we are forcing advisors to purchase Nexus smart contract cover if they want to be covered by the E&O insurance we create. Again, the effort is in creating the education as to how it works, how to purchase, and why they need it.
**What support would you need from the Nexus team? Please include any resources you would require (except for financial). ***
We would need the team to provide some of the education you have or are currently building, as well as some guidance as to the cover we will need based on the protocol stack chosen.
We will also require help from the Nexus Mutual team in building the E&O protocol and reinsurance pool.
How much time will it take you to complete the project? Please include how many hours/days you will work on the project and your expected delivery timeframe
We look to complete this project within 90 days. We are somewhat at the mercy of attorneys to complete much of the legal work. However, since most of the work on our end is not coding, but in building educational material and frameworks, we can do much of the work in parallel.
What’s the budget in USD?
The budget for the project is $125,000. We’re asking Nexus Mutual for 1,000 NXM tokens payable in 3 installments.
The first installment of 250 NXM will be to get the attorneys started on their work of legal opinion on allowable custodial solutions and investment options. We will require some of their initial thoughts to work through tech stack, insurance and education, and the attorneys require a retainer to start work.
Upon completion of the technology stack and protocol outline, based on the attorney recommendations and opinions, we will submit to Nexus Mutual, and request installment 2 of 350 NXM. This installment will again be for attorneys to draft recommended language to amend SEC and State disclosures and client agreements. At this time we can also start on Errors & Omissions insurance design.
Upon completion of the entire project, we will submit to Nexus Mutual, and request the remaining balance of 400 NXM.
Please tell us about yourself. Include name, contact information, how you heard about and got involved with Nexus.
Steve Larsen, CPA, CFP®
Steve is a financial planner and digital asset consultant to Registered Investment Advisers. As a Certified Public Accountant, Certified Financial Planner, and owner of a 200-million-dollar wealth management firm, he has deep experience in all areas of RIA operations.
Steve also teaches financial planning and cryptocurrency classes at Gonzaga University, is a co-founder of the Certified Digital Asset Advisor (CDAA) designation, and is the Founder of PlannerDAO, a decentralized community of financial advisors.
Adam Blumberg, CFP®
Adam has been in Financial Services for over 12 years operating his own Registered Investment Adviser and providing financial planning services to small business owners. He developed the Certified Digital Asset Advisor (CDAA) designation and curriculum and is the Co-Founder of PlannerDAO.
Adam is also the Founder of Interaxis, a company dedicated to educating financial professionals about digital assets, cryptocurrency, blockchain, and other alternative assets. The Interaxis YouTube channel has over 5,800 subscribers, and he has produced video lessons for several of the top cryptocurrency exchanges.
We’ve both been NXM holders and users for over a year. Adam was fortunate enough to participate in one of the very first (if not the first) community vote.