Newsletter - 28th May 2021

Official News

  1. The Lido stETH investment is now complete, following a successful community vote. 15,000 ETH was invested from the mutuals capital pool. The engineering required to make this investment happen will also allow us to pursue other investment opportunities in the future with less development required.

This is the mutuals very first investment from the capital pool. It’s a huge step for the mutual. Congratulations to the engineering team and to our Investment Hub.

  1. Yield token cover has been listed and is now open for staking. This includes yDAI v2, yUSDC v2, ycrvstETH, 3pool and sETH. Yield Token Cover protects members against their yield bearing tokens de-pegging.

If your yield-bearing token de-pegs in value by more than 10%, you may claim up to 90% of your loss by swapping your yield-bearing token for a claim payment.

  • De-peg happens for more than four continuous hours.

  • Claims go through group claims assessment process where a full-member governance vote is held to determine if de-peg is valid.

  • Members who had cover live at the time of the de-peg can swap their yDAI tokens at a 90% return rate for the same underlying covered currency (in this example, USD/DAI).

  • Swap ratio is determined by the value of the token right before the de-pegging.

  • Members can choose to swap some or all of their yDAI for a 90% return rate.

  • After claim payout, cover period ends

More info on the types of cover can be found here: Types of cover - Nexus Mutual

  1. MCR calculations are now fully on chain. MCR, which used to be updated daily, will now take the existing MCR value and move it towards the target each time someone:
  • Buys NXM
  • Sells NXM
  • A claim is paid

Community Discussions

Nexus Mutual Sponsorship: ETH Global’s Hack Money Hackathon

This proposal is for Nexus Mutual to participate at the pillar sponsor level for ETHGlobal’s Hack Money ( 1) coming up June 18th-July 9th, 2001. The cost would be $28,000 for the mutual and would result in thousands of developers seeing and engaging with the mutual.

Creating More Capacity

One of the issues that the mutual is facing right now is a lack of capacity on the most popular projects, including Aave v2 and Curve. This discussion proposes increasing the capacity factor for these, allowing for a given amount of staking to open up more capacity.

Capital Pool and/or Risk Assessment Model Bounty

BraveNewDeFi discusses whether it would be beneficial to create a bounty for a developer to create an educational model. It would be a “set bonding curve with various formulas built into the model that members can play with (i.e. change the amount of ETH in the capital pool) to see the impact of MCR% and price.”

This idea should allow new members to more easily understand and visualize how changes in different factors could impact the growth of the mutual. Some members believe this complexity makes it harder to attract new capital.

Community Corner

“On March 24th, the Nexus Mutual Community Fund was born! Since our inception we’ve been busy bringing value to our community by way of grants and bounties.

So far, we have paid out a total of 300 wNXM for retroactive services that benefit the mutual. Another 8 wNXM are to be paid as bounties to our Protocol Cover contest winners.

300 wNXM is also allocate in bounties, to be paid for research analysis papers on BSC’s Pancake, Bunny Finance and Terra’s Anchor Protocol.


Looking for an opportunity to have your voice heard and ask questions on the direction of the mutual? Don’t forget to engage on our Nexus Mutual Forum. We have new discussions posted for your feedback and ideas that require consideration before heading to Snapshot for voting.

Once these posts have been in consideration on the forum for seven (7) days, they will then head over to Snapshot for off chain voting which means no gas fees!

Upcoming Opportunities

  1. We are searching for a video producer to create a 45-second piece for the upcoming Hack Money event in June. We’re looking for a fast moving and highly creative piece to showcase Nexus and the prizes we will be offering at the event.

  2. We are still looking for a Discord Bot aficionado. We want to create an automatic integration from our other social platforms to our Discord, to generate more community engagement.

  3. The Fund is open for business and we’d love to hear from you if you have any ideas, potential projects and collaborations. The process is fairly simple and starts out with you filling in our application form here: Application for Nexus Mutual Community Fund grants

If you are interested or know anyone for these two opportunities, have them DM Kendrea on Discord!

And should you have any questions, just schedule some time to chat with us here: Calendly - Kendrea Camacho

Please remember, there is no community without you!”

Kendrea, Head of Community

Other Updates

Investment Hub

Our investment hub is being lead by our Board Member, Rei. This hub is still being fully established but has already successfully led the investment of 15,000 ETH into Lido stETH this week following Rei’s proposal to the forum. The investment hub is currently creating a detailed investment strategy that is expected to be released in the coming weeks.

There remains an RfP for those who are interested in actively investing some of the mutuals assets: Request for Proposal: Capital Pool Investment Manager

Marketing and Communications Hub

Our Marketing Hub is close to being setup. BraveNewDeFi and Jer979 will be co-leading this hub. With multiple decades of marketing and communications experience between them, they will help to drive more cover and capital growth for the mutual. A proposal and more information for this hub will be released soon.

Our Community Engagement Hub (supported by the community fund) is looking for community members who want to get involved with upgrading our Discord, or who have other relevant skills to promote community engagement. If this sounds like you, get in contact with Kendrea on Discord!

Core Team

Internally, the core team is focussing on distribution and the engineering team has been busy with upgrading Nexus Mutual to allow for stETH investments and to put MCR on-chain. The engineering team are now planning their next priorities and we will share more details in our next newsletter.

Spotlight On: BraveNewDeFi

We want to draw attention to the value that our members provide to Nexus Mutual.

@BraveNewDeFi is one of our valued Discord Moderators, community fund recipients and loyal Nexus Mutants. He’s thoughtfully given hundreds of hours of his time to answer thousands of questions on Discord and the forum, from new and experienced members alike.

BraveNewDeFi is currently working on upgrading all of our documentation to make it easier for new members to understand NXM, which will grow our capital pool. He came up with our new Hub model, which will be the basis for the growth of NXM as a decentralised entity. He’ll also be leading the Marketing Hub himself.

Thank you, BraveNewDeFi, for everything you do to support Nexus Mutual and our incredible community!


Absolutely LOVING your newsletters! Really informative! Thank you!

1 Like

Great job is listing out the weekly updates. It is very comprehensive and useful to keep up to date with the progress. Thanks for putting this up.