The Investment Committee team presents its May 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 6.60% in ETH terms this month - from 66.9k to 62.5k ETH. Withdrawals through the RAMM, totaling 2.9k redemptions, remained the primary factor. While ETH price saw a substantial 41% gain over the last month, this generated a negative FX impact from stablecoin holdings. However, Cover Fees and Investment holdings contributed positively 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 decreased from 0.02453 to 0.02403 - representing a 2.02% annualized drop for the month. This decline stemmed primarily from negative FX impact on stablecoin holdings, offset partially 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 May ‘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 prepared for the Aave loan repayment by creating a limit order to convert 229,750 DAI to USDC before initiating the repayment.
State of the Investments
In the last month, the Mutual earned 112.1 ETH on its investments, overall, as broken down below.
stETH Monthly Return: 41.859
stETH Monthly APY: 2.938%
rETH Monthly Return: 33.073
rETH Monthly APY: 2.649%
Enzyme Vault Monthly Return: 31.933
Enzyme Vault Monthly APY: 2.687%
Enzyme Vault includes EtherFi and Chorus One/Stakewise V3 investments
aEthWETH Return: 10.14
aEthWETH APY: 1.889%
debtUSDC Return: -4.875
debtUSDC APY: 3.606%
Aave Net Return: 5.265
Aave Net APY: 0.977%
Total ETH Earned: 112.131
Total Monthly APY: 2.099%
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 0.9%. Based on the average Capital Pool value during the month, the overall return was 2.1% APY.
Investment Committee Priorities
- Execute Aave loan repayment after completing the DAI to USDC limit order swap
- After completing the stETH to ETH limit order swap, we will execute an additional swap from rETH to ETH as per the Divestment Framework