The Investment Committee team presents its April 2025 newsletter, where we share insights surrounding the Capital Pool and Nexus Mutual’s investments. The goal is to make key data transparent and easily accessible to everyone.
State of the Capital Pool
Monthly Change - ETH value
The Capital Pool decreased by 3.95% in ETH terms this month - from 69.6k to 66.8k ETH. Withdrawals through the RAMM, totaling 3.1k redemptions, were again the largest factor. A slight drop in ETH price generated a positive FX impact from stablecoin holdings, while Cover Fees and Investment holdings also added positive value.
The various impacts on the capital pool are summarised in the waterfall chart below.
The cover fee income is net of distribution commissions and excludes covers paid for in NXM. In such a case, the cover fee gets burned and there is no change in the Capital Pool.
Monthly Change in NXM Book Value
The Capital Pool’s ETH/NXM value increased from 0.02431 to 0.02451 - representing a 9.82% annualized rise for the month. This growth came primarily from value added through RAMM, along with positive FX impact from stablecoin holdings.
The various impacts on the capital pool are summarised in the waterfall chart below.
→ Members can track protocol’s revenue on the Financials Dune Dashboard.
→ Members can track in/outflows on the Ratcheting AMM Dune Dashboard.
→ Members can track the cover income on the Covers Dune Dashboard.
End of Month Pool Split
The split of the Capital Pool at the end of April ‘25 in ETH terms is as follows.
→ Members can find the updated split at any time on the Capital Pool and Ownership Dune Dashboard.
Aave USDC Loan
The Advisory Board made two repayments on the Aave loan: 283.3k USDC on April 10th and 203.4k USDC on April 25th. These payments reduced the outstanding debt balance from 3.4m to 2.9m USDC.
State of the Investments
In the last month, the Mutual earned 91.4 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 42.845
stETH Monthly APY: 2.986%
rETH Monthly Return: 33.701
rETH Monthly APY: 2.706%
Enzyme Vault Monthly Return: 31.873
Enzyme Vault Monthly APY: 2.688%
Enzyme Vault includes Kiln, EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 11.551
aEthWETH APY: 2.158%
debtUSDC Return: -28.565
debtUSDC APY: 19.734%
Aave Net Return: -17.014
Aave Net APY: -3.103%
Total ETH Earned: 91.406
Total Monthly APY: 1.619%
Based on average Capital Pool amount over the monthly period
All returns after fees
The active staking investments yielded between 2.7% and 3.0% APY, demonstrating healthy ETH staking returns despite lower rates. The Aave USDC debt position, using ETH as collateral, produced a net APY of -3.1% and the main driver behind it was ETH/USD price drop, which caused the debt to increase in ETH terms. Based on the average Capital Pool value during the month, the overall return was 1.6% APY.
Investment Committee Highlights
- NMPIP 249: The proposal to stake Kiln ETH in Enzyme Vault through ether.fi has been implemented and the funds have been reallocated.