Nexus <> Enzyme Update

Hey all, this is @Moss and @elisafly, from Enzyme / Avantgarde Treasury.

It’s been 18 months since Nexus started using Enzyme to manage a portion of its assets on-chain in a completely non-custodial way. We’ve really enjoyed working with Nexus so far and thanks to the productive feedback we recently received, we would like to share a few minor changes moving forward.

As a refresher, here are some of the services and infrastructure we’ve brought to the table since inception:

  • Enzyme platform usage for Nexus through dedicated vault
  • 2 completed DeFi integrations and audits (Maple, Kiln)
  • Oracle work in connection with Chainlink (incl. audit)
  • Support with executing transactions

Also as a reminder, in July 2023 we restructured the agreement with Nexus and reduced overall fees in order to avoid charges on the idle assets. Since July 2023 the annual fees amount to 15bps (0.15%) in aggregate on Assets Under Technology. The protocol fee owed to Enzyme before the reduction in July 2023 has now been claimed by Enzyme. Importantly, half of this fee was reimbursed/returned to the Nexus vault resulting in an effective protocol fee of 25 bps (0.25%) for that period.

Moving forward, we’ve agreed to:

  • Maintaining an aggregate fee of 15bps on all Assets Under Technology
  • Charging a minimum fee of $5k/ month, evaluated at the end of each Quarter at the prevailing ETH/USD rate and settled - if necessary - annually on May 1 2025.
  • Ethereum gas fees to be absorbed by the vault.
  • Enzyme bearing the contract with Chainlink which was previously priced at $2k/month but has now been successfully reduced to $1k/month.

The services and infrastructure that will be provided by Enzyme (or its subcontractors) are as follows:

  • Access to Enzyme infrastructure “as is” (protocol and application)
  • Up to 2 audited smart contract integrations per year to be delivered by Enzyme (as long as feasible)
  • Execution: farming and compounding of rewards.
  • Working closely with Chainlink to make improvements to the vault oracle (in particular, it does not currently track unclaimed ETH rewards)
  • Customer support

Thank you again all for your continued support and collaboration. It’s great to see the progress we’ve made together over the past 18 months and look forward to further strengthening our partnership with Nexus.

If you have any questions or feedback, please don’t hesitate to reach out. :muscle: :wave: