Hello @vincentj, thank you for providing feedback on our proposal.
We actually discussed this topic with armor’s team, they even provided very relevant insights that we used during the discovery phase to create the best design possible. The discussion is here: Proposal: Nexus Covered Vaults (Discovery Phase) - #4 by robert
Robert mentioned that the only reason they stopped their work on coverage-wrapped tokens is because they migrated to a completely different model of Uninsurance.
Unfortunately we couldn’t use arShield’s code because we are targeting Nexus v2 and all previous implementations work with v1, but their ideas were taken into account.
As for demand, we envision a near future where mass adoption of DeFi requires better UX and security provided by default to newcomers who don’t know (and probably don’t care) about the intricacies of Yearn, Nexus or ERC-4626 compatible vaults. Once this protocol is integrated with enough vaults, users will have the option to purchase insured or uninsured vault shares, they will compare the expected returns and the risk profiles and will choose the one that fits them best. History and experience showed us that there’s people in the whole spectrum of risk/profit, and that the next wave after the early adopters needs better usability and lower risk.