The Investment Committee team presents its December 2024 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
The Capital Pool has reduced by 3.11% in ETH terms this month. The largest impact was once again from withdrawals via the RAMM within 3.0k total redemptions. There has been a positive FX impact as a result of the stablecoin holdings due to the drop in ETH price, as well as very good results from Cover Fees and Investment holdings.
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.
→ 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 December ‘24 in ETH terms is as follows.
The largest largest portion of cover buys in December were again denominated in USDC and substantial increase of cover buys denominated in cbBTC (5.4k in ETH terms).
→ Members can find the updated split at any time on the Capital Pool and Ownership Dune Dashboard.
Aave USDC Loan
On December 4th, the Advisory Board repaid 297.7k USDC from the Aave loan, bringing the outstanding debt balance at the time down from 5.11m to 4.82m USDC.
Aave WETH Collateral
On December 13th, the Advisory Board withdrawn 3k WETH from the Aave collateral and redeposited this amount back to the Capital Pool, bringing the outstanding collateral balance at the time down from 9.45k to 6.45k WETH.
State of the Investments
In the last month, the Mutual earned 144.7 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 73.787
stETH Monthly APY: 3.132%
rETH Monthly Return: 34.726
rETH Monthly APY: 2.815%
Enzyme Vault Monthly Return: 31.788
Enzyme Vault Monthly APY: 2.709%
Enzyme Vault includes Kiln, EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 14.607
aEthWETH APY: 1.873%
debtUSDC Return: -10.176
debtUSDC APY: 9.144%
Aave Net Return: 4.431
Aave Net APY: 0.565%
Total ETH Earned: 144.731
Total Monthly APY: 2.293%
Based on average Capital Pool amount over the monthly period
All returns after fees
The active staking investments yielded between 2.7% and 3.1% APY, reflecting the lower but healthy ETH staking yields…
The Aave USDC debt position, collateralised by ETH, produced a net APY of 0.57%.
The Capital Pool overall earned 2.29% APY based on the average Capital Pool value over the course of the month.
Investment Committee Priorities
- We are working with Enzyme and Chainlink to incorporate the unclaimed Kiln rewards into the NXMTY oracle; this update is still pending, as per the last update.