This is a suggested template to follow when proposing investments from the Nexus Mutual Capital Pool at the “RFC” stage.
As many of the below topics as possible should be covered by the proposer. The list below is not exhaustive and it falls on the poster to add any additional information that may be relevant.
Note that the majority of the Capital Pool is currently held in ETH, with members expressing a preference for being overweight ETH compared to stables. Any immediate investment suggestions are more likely to be successful if they are ETH-denominated.
Introduction
- Describe what the suggested asset is at a high level and provide url links to information.
- Describe how your post fits into the Nexus Mutual governance process
- For any market figures in the post, provide a date when they were last updated.
Rationale
- High level description of why Nexus Mutual should invest in the asset in question?
- Why this asset over available alternatives? What differentiates it from other similar options?
- How/where does the asset fit into our Investment Philosophy? High level description of risk category.
Proposal
- Amount and duration of investment
- Rationale in the context of existing investment assets and other obligations of the capital pool
- Suggested monitoring processes & how they should be implemented
- Technical implementation details
- What asset is held in the capital pool & how does value accrue to it?
- Can we use our CoW Swap integration? If not, what are the details of implementation?
- Who is responsible for the work?
- Oracle details - how do the Nexus Mutual smart contracts know the exact value of the investment in real time?
Rewards
- Current rewards (annual and daily if continuously emitted)
- Expected annual rewards under a variety of different scenarios, if applicable
- Expected
- Pessimistic
- Optimistic
Fees & Ongoing Expenses
- Management fees & how they scale by AUM level
- Set-up and ongoing fees related to execution of strategy
Risks
- Description, analysis & mitigations of risks related directly to the investment
- Smart contract security, including any linked/underlying protocols
- Governance risks & points of failure in underlying organization
- Asset price risk
- Any other risks
- Description, analysis & mitigations of risks specific to Nexus Mutual investing in the proposed asset
- Technical risks associated with making the investment
- Market risks associated with making the investment
- Ongoing liquidity risks
- Reputation risks
- Size of Nexus Mutual’s investment relative to overall TVL of proposed investment
- Overview of proposed investment in context of Risk Assessment categories in the Investment Philosophy