The Investment Committee team presents its July 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 7.78% in ETH terms this month, dropping from 59.9k to 55.3k ETH. Withdrawals through the RAMM, which totaled 3.3k redemptions, remained the primary factor. ETH price surged by 51% over the last month, creating a negative FX impact on our stablecoin holdings. Nevertheless, Cover Fees and Investment holdings made positive contributions to the pool’s 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 fell from 0.02419 to 0.02373, representing a 1.93% annualized decrease for the month. This decline primarily resulted from the negative FX impact on stablecoin holdings, though it was partially offset by value added through RAMM and investment returns.
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 July ‘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: 288.4k USDC on July 1st and 233.5k USDC on July 24th. These payments reduced the outstanding debt balance from 2.5m to 2.0m USDC.
Divestment
On July 31st, the Advisory Board initiated asset reallocation as per the Divestment Framework:
- 2000 ETH withdrawal from Aave collateral
- Limit order sale of 3,750 rETH to a minimum of 4,275 ETH
Once completed, these actions will increase the total ETH in the Capital Pool to 12.1k ETH.
State of the Investments
In the last month, the Mutual earned 40.7 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 31.1
stETH Monthly APY: 2.814%
rETH Monthly Return: 27.072
rETH Monthly APY: 2.615%
Enzyme Vault Monthly Return: 14.491
Enzyme Vault Monthly APY: 1.122%
Enzyme Vault includes EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 14.751
aEthWETH APY: 2.75%
debtUSDC Return: -46.686
debtUSDC APY: 70.875%
Aave Net Return: -31.935
Aave Net APY: -5.724%
Total ETH Earned: 40.728
Total Monthly APY: 0.852%
Based on average Capital Pool amount over the monthly period
All returns after fees
Active staking investments yielded between 1.1% and 2.8% APY, showing healthy ETH staking returns despite market conditions. The Aave USDC debt position (which uses ETH as collateral) produced a net APY of -5.7%, again due to the negative FX impact on the USDC position. Overall, based on the average Capital Pool value for the month, investments returned 0.9% APY.
Investment Committee Priorities
- Transfer 2k ETH withdrawn from Aave back to the Capital Pool
- Execute rETH to ETH limit order via CoW Swap
- Working with Enzyme to manage ongoing risks related to investments in NXMTY vault