The Investment Committee team presents its March 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 2.65% in ETH terms this month - from 71.4k to 69.6k ETH. Withdrawals through the RAMM, totaling 3.1k redemptions, had the largest impact. The month’s drop in ETH price created a positive FX impact from stablecoin holdings, while Cover Fees and Investment holdings also contributed positively.
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 rose from 0.02382 to 0.02429 - an annualized increase of 23.36% for the month. This growth was primarily driven by positive FX impact from stablecoin holdings and significant value added through RAMM.
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 March ‘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 March 12th, the Advisory Board repaid 419.2k USDC from the Aave loan, reducing the outstanding debt balance from 3.8m to 3.4m USDC.
stETH Divestment
On March 31st, the Advisory Board initiated the sale of 6,700 stETH for ETH as per the Divestment Framework. Of this amount, 1,602 stETH was filled on the same day, with the remaining 5,098 stETH filled on April 1st, bringing the total ETH in the Capital Pool to 11.5k.
State of the Investments
In the last month, the Mutual earned 136.4 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 57.968
stETH Monthly APY: 2.947%
rETH Monthly Return: 35.282
rETH Monthly APY: 2.841%
Enzyme Vault Monthly Return: 31.439
Enzyme Vault Monthly APY: 2.655%
Enzyme Vault includes Kiln, EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 11.555
aEthWETH APY: 2.163%
debtUSDC Return: 0.198
debtUSDC APY: -0.135%
Aave Net Return: 11.753
Aave Net APY: 2.2%
Total ETH Earned: 136.441
Total Monthly APY: 2.374%
Based on average Capital Pool amount over the monthly period
All returns after fees
The active staking investments yielded between 2.7% and 2.9% APY, demonstrating healthy ETH staking returns despite lower rates. The Aave USDC debt position, using ETH as collateral, produced a net APY of 2.2%. Based on the average Capital Pool value during the month, the overall return was 2.4% APY.
Investment Committee Highlights