MakerDAO DSR (sDAI) & Spark Protocol now listed in the Nexus Mutual UI

Cover Products New Listing Announcements
1

MakerDAO DSR (sDAI) & Spark Protocol now listed in the Nexus Mutual UI

If you’re active within the MakerDAO ecosystem, we have two Protocol Cover listing announcements and a listing update to share with you!

With Protocol Cover, you can protect against:

  • Smart contract code being used in an unintended way (e.g., exploits, hacks)
  • Sudden and severe economic events, such as:
    • Oracle manipulation/failure
    • Severe liquidation failures
    • Governance attacks

MakerDAO DSR (sDAI) Protocol Cover is live!

Since MakerDAO increased the Dai Savings Rate (DSR) to 5%, members have requested Protocol Cover to protect deposits in the DSR contract through the sDAI wrapper. Since the MakerDAO DSR (sDAI) listing is separate from MakerDAO CDP Protocol Cover, staking pool managers can provide members with a lower cost of coverage.

Now that MakerDAO DSR (sDAI) is listed, members can purchase Protocol Cover to protect their deposits in the Dai Savings Rate contract, which can be accessed through multiple user interfaces (UIs).

:point_right: Get a quote for MakerDAO DSR (sDAI) Protocol Cover

MakerDAO DSR
MakerDAO DSR2410×1354 112 KB

Spark Protocol Cover is live!

The Spark SubDAO within MakerDAO’s ecosystem deployed Spark Protocol, an Aave v3 fork, in late spring. Since then, Spark Protocol’s TVL has grown to $400m+ and members have asked for Spark to be listed on Nexus Mutual.

Now that Spark Protocol is listed, members can purchase Protocol Cover to protect their deposits in Spark’s lending markets.

:point_right: Get a quote for Spark Protocol Cover

Spark Protocol
Spark Protocol2410×1354 112 KB

MakerDAO MCD has been updated to MakerDAO CDP Protocol Cover

As the above cover products were listed, we wanted to be sure no one would be confused about what was covered if someone purchased MakerDAO MCD Protocol Cover, so we’ve updated the OG MakerDAO listing from MakerDAO Multi-Collateral Dai (MCD) to MakerDAO Collateralised Debt Position (CDP), which protects deposits in MakerDAO vaults for people who are borrowing DAI against their collateral.

  • If you’re depositing into MakerDAO to borrow DAI, MakerDAO CDP Protocol Cover will protect your crypto assets
  • If you’re depositing into MakerDAO’s DSR contract to earn on your DAI, MakerDAO DSR (sDAI) Protocol Cover will protect your crypto assets
  • If you’re depositing collateral into Spark Protocol’s lending market, which is outside the MakerDAO smart contract system, Spark Protocol Cover will protect your crypto assets
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Hi @BraveNewDeFi ,

Wouldn’t adding sDAI go against NMPIP-193?

Unless Maker is lying here, sDAI is a yield token product: https://twitter.com/MakerDAO/status/1655575104388997121

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Hey @toddy92,
The protections offered here are for the Dai Savings Rate (DSR) contract and the sDAI wrapper contract, which is a designed to offer an ERC-4626 compatible vault that people can deposit DAI into and earn through the DSR. The MakerDAO DSR (sDAI) Protocol Cover protects against exploits & hacks that cause a loss of funds if either of these two smart contracts are affected.
As it highlights in Protocol Cover (in clause 3.6), this cover DOES NOT offer protect against depegs.

4

thanks, but sDAI is still a yield token product. So why was an exception made to add cover?

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Savings Dai (sDAI) is a tokenized wrapper around the DSR that adheres to the ERC-4626 token standard, which means Savings Dai acts as a yield-bearing vault similar to a Yearn vault or any other ERC-4626 vault. People can deposit into the sDAI vault and access DSR yield.

This vault is subject to smart contract risk, which MakerDAO DSR (sDAI) Protocol Cover protects against. As I shared above, this Protocol Cover protects against smart contract risk in the DSR and Savings Dai (sDAI) contracts.

It is not a Yield Token Cover product and does not offer those protections. You can see the Protocol Cover wording here.

No exception has been made to cover this risk, as it’s a Protocol Cover product offering.