The Investment Committee team presents its February 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 1.38% in ETH terms this month - from 72.4k to 71.4k ETH. Withdrawals through the RAMM, totaling 2.8k redemptions, had the largest impact. However, there was a significant positive FX impact from stablecoin holdings due to February’s drop in ETH price, along with an above-average result from Cover Fees.
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 0.02318 to 0.02380, representing an annualized 31.99% rise this month. This growth was primarily driven by the large positive FX impact from stablecoin holdings, investment returns of 2.89%, and substantial value added from RAMM of 4.05%.
The various impacts on the capital pool are summarised in the waterfall chart below.
→ 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 February ‘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
On February 14th, the Advisory Board repaid 387.8k USDC from the Aave loan, reducing the outstanding debt balance from 4.2m to 3.8m USDC.
State of the Investments
In the last month, the Mutual earned 175.1 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 59.813
stETH Monthly APY: 3.05%
rETH Monthly Return: 32.884
rETH Monthly APY: 2.652%
Enzyme Vault Monthly Return: 48.736
Enzyme Vault Monthly APY: 4.244%
Enzyme Vault includes Kiln, EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 9.773
aEthWETH APY: 1.829%
debtUSDC Return: 23.921
debtUSDC APY: -20.361%
Aave Net Return: 33.694
Aave Net APY: 6.437%
Total ETH Earned: 175.127
Total Monthly APY: 2.961%
Based on average Capital Pool amount over the monthly period
All returns after fees
The active staking investments generated yields between 2.7% and 4.2% APY, demonstrating healthy ETH staking returns. Using ETH as collateral, the Aave USDC debt position delivered a net APY of 6.4%. Overall, the Capital Pool earned 2.9% APY, based on the average Capital Pool value during 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.
- Ether.fi RFC is up on the forum regarding allocating the Kiln ETH funds into ether.fi. Members are encouraged to review and provide feedback on this proposal.