Increase MCR increment to 12 hours

Governance Discussions Nexus Mutual Protocol Improvement Proposals
1

Hey everyone. wNXM has brought many new members to Nexus Mutual. But the latest MCR 4h increment hasn’t been kind to them. I propose a 12h MCR increment so stabilize NXM price. While scaling capital is imperative, first impression/marketing/new members retention are equally important.

We should have a trade-off between capital scaling and not hurting new members.

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I respect what you are trying to achieve and hope my comment does not come off as an attack - that is not the intention.

With that said, I oppose this proposal.

The recent sudden increase and subsequent decrease in price were caused by a few entities manipulating the price by injecting huge amounts of ETH into the mutual. There were multiple transations of 1000 ETH and subsequent selloffs.

This were done after the discussion and voting on the proposal to change the MCR% had begun. We discussed the risks and potential short term effects of the proposal quite in depth before it were made and voted on.

  • It takes about 7-10 days for the MCR% to stabilize in my forecasts.
  • The fastest we can vote on and implement a new proposal is 7 day.

This means that if we are going to see the NXM price decrease during the next couple of days, there are nothing we can do about it now.

The good news is that after the change we should see growth being driven by providing insurance. With a higher MCR (that is lower MCR%) we will see better returns from staking, since a larger percentage of the capital in the mutual are used for providing insurance.

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3

Agreed. The mutual can be expected to grow proportionally to DeFi growth.
Hence, to me :

  • If one joined NXM with a long term perspective, they should be happy with those latest decisions and will likely benefit from them in the long run.
  • If one joined NXM with a short-term perspective, all the information has been available for them to know when to take their profits.
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