Similar to regular insurance companies Nexus Mutual needs to invest its assets to earn yield on the float.
We’re currently working on some updates the will allow this to happen, so we’re after feedback and ideas on where we should invest the assets. This will be an ongoing topic of discussion as the mutual grows and will need adjusting over time, but to start off we’d like to gather ideas on potential assets to include.
We can then progress to discussions on allocations etc.
Some items to consider:
Assets must be ERC-20 with enough liquidity on Uniswap, we won’t be able to make smart contract calls at this stage.
Accumulation of risk is a very important aspect for the mutual. If we cover eg Compound and are at max capacity we probably don’t want to put more assets in Compound to earn yield, if there is an issue we pay claims and potentially lose assets.
As the mutual grows larger we should aim to match assets with liabilities more closely. eg if 30% of cover is in DAI, we should probably have close to 30% of assets denominated in USD.
|Asset||Ticker||Currency||Adequate Uniswap Volume||Rough Yield||Accumulation of Risk||Comment|
|Lido staking||bETH||ETH||No||3%-10%||No||Not live yet|
|RocketPool Staking||rETH||ETH||No||3%-10%||No||Not live yet|
|CHAI||CHAI||USD||??||0%||Mostly no||Unlikely to go above 0% for a while|
|Arcoin||??||USD||??||Low?||No||Tokenised US Treasuries so likely low yield for a while|
|Tinlake Assets||??||USD||??||??||No||Tokenised trade-finance|
|RealT Assets||??||USD||??||??||No||Tokenised real-estate|
|Yield Tokens||??||USD||Not yet||3-4%||Yes||Zero coupon DAI bonds|
|Notional.Finance||??||USD||Not yet||??||Yes (if cover offered)||Zero coupon bonds|
|Uniswap ETH:DAI LP||??||ETH:USD||??||??||Yes||Impermanent loss|
|Balancer Smart Pool||??||ETH:USD||Not yet||??||Yes||Create a tailored Balancer pool for part of the mutuals assets and then list the LP tokens on Uniswap|