This report summarises karpatkey’s activities and achievements in November 2024, with the focus on selling and diversification of NXM Token.
Financial Results
The treasury has increased from $6.68 million at the end of October to $9.28 million as of the end of November.
The revenue generated from protocol fees to the treasury amounted to $83.3k in November.
Treasury allocation to DeFi activities stands at 34.3%.
Detailed information about the treasury results is available in the November report, accessible via the dedicated Nexus Mutual dashboard on the Karpatkey website.
Treasury Operations
NXM Staking
As part of the mandate from the Nexus Mutual DAO treasury, 100% of the NXM earmarked for the staking program (35,803.80 NXM) has been allocated across five staking pools. The allocation strategically balanced exposure between high and low-claim-rate products to maximize returns while mitigating the risk of over-staking, thereby safeguarding the pool’s APY.
An additional 10,200 NXM was staked to improve capital efficiency in the context of prices below book value and slow redemption process, which limits the immediate usability of unwrapped NXM.
To encourage cover purchases, the overall staking period was extended by 91 days to 23rd April 2025.
NXM Selling
An amount of 2,000 NXM were swapped at spot price, staying within the aligned 1% of the redemption price.
Selling was paused in the last week of November to protect Nexus Mutual’s financial interests, as the spot price showed a significant deviation from the book value.
By not selling NXM well below book value, karpatkey ensures the treasury’s value is preserved, avoiding unnecessary devaluation of Nexus Mutual assets.
Moving forward, karpatkey will closely monitor the deviation and only resume selling in line with the 1% mandate, maintaining a responsible and professional approach to treasury management.
Liquidity provision
Two positions have been created in the WNXM/WETH V3 pool on Uniswap: one with a tighter range for improved capital efficiency and another with a broader range to better capture price volatility.
Both positions are currently out of range but have accrued significant swap fees (~$3,288). The broader range is designed to ensure liquidity availability during periods of high price deviation, while the tighter range optimizes earnings during periods of stability.
ETH Derivative
As a part of mandate, WETH resulting from wNXM diversification was allocated to wstETH to gain exposure to ETH staking yield. The Nexus Mutual treasury now holds ~30 wstETH, and we plan to increase our exposure to ETH derivatives as the price improves.
Next Steps
Explore WNXM/USD pools on CoWAMM.
Adding new Zodiac Permissions so that CoWAMMs can be incorporated, which is now insured by Nexus Mutual.
Actively monitor the NXM price to continue the diversification process.
This report summarises karpatkey’s activities and achievements in December 2024, with our focus on building a diversified and sustainable DAO treasury.
Financial Results:
Treasury Balance: $9.08M, down from $9.28M in November, mainly due to NXM price variation. This is depicted by the Price Var for Init Bal in the below Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operations results (also shown in the Treasury Variation chart below) increased to $122K from $83K in November.
DeFi Allocation: 43.7%, up from 34.3% in November, mostly driven by staking an additional 10,200 NXM for capital efficiency.
DeFi Revenue: $28.3K, up from $17.4K in November. This is depicted by the DeFi results entry in the below Treasury Variation chart.
Full treasury breakdown is available on the Nexus Mutual dashboard at the karpatkey website.
Treasury Operations:
140K USDC that had accrued from protocol fees was deposited into the Aave V3 core market.
NXM Tokenomics:
The total circulating supply of NXM currently stands at 3.23M, with 1.08 million held in wNXM and the remaining 2.14M in NXM.
Of the 2.14M NXM, 576K is actively staked within Nexus staking pools.
Out of the 1.08M wNXM in circulation, 17K are deployed across various DEX liquidity pools.
NXM Price:
The NXM spot price remained notably below its book value (“BV”) during the first half of December but showed signs of recovery in the latter half of the month.
Since the NXM spot price did not recover sufficiently in alignment with the 2% mandate, no WNXM sales were executed in December.
As the NXM spot price improved in the second half of December, both Uniswap concentrated liquidity positions are in range and generating swap fees.
Going forward, karpatkey will closely monitor the NXM spot price and execute WNXM sales whenever the NXM price is between BV and BV-2%, maintaining a responsible and professional approach to treasury management.
Next Steps:
Establish monitoring infrastructure to facilitate Ether.fi ETH re-staking within the curated set of strategies.
Conduct research and perform risk assessments for the Resolv and Ethena protocols to support a broader portfolio of stablecoin strategies, while defining the necessary monitoring infrastructure.
Implement new Zodiac permissions for the Sky Saving Rate (e.g., for staking USDS) and the Aave Prime market.
Actively monitor the NXM price to support the ongoing diversification process.
This report summarises karpatkey’s activities and achievements in January 2025, with our focus on selling and diversification of NXM Token.
Financial Results:
Treasury Balance: $8.47M, down from $9.08M in December, mainly due to NXM price variation. This is depicted by the Price Var for Init Bal in the below Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operations results (also shown in the Treasury Variation chart below) decreased to $74.1K from $122K in December.
Operating Expense: To fund the 2025 Q1 budget, $155K was withdrawn from the Nexus Avatar Safe in aEthUSDC and WNXM.
DeFi Allocation: 45.8%, up from 43.7% in December, mostly driven by additional positions in Aave v3 and Uniswap v3 as detailed below.
DeFi Revenue: $25.7K, down from $28.3K in December. This is depicted by the DeFi results entry in the below Treasury Variation chart.
Full treasury breakdown is available on the Nexus Mutual dashboard at the karpatkey website.
Treasury Operations:
Positioned two Limit orders one at 1.8% discount to Book Value and other at 1.2% discount to Book value to capture WNXM selling to WETH.
44.8K USDC that had accrued from protocol fees was deposited into the Aave V3 core market.
Strategically, exited one of the LP Position in Uniswap v3 that resulted in WNXM sold for WETH at 0.02263 after accruing trading fees, equivalent to 0.17% discount to Book Value and well within 2% mandate.
Asset
Invested
Withdrawn
Diffs
Total Fee
WNXM
1027.90
213.44
-814.46
17.66
WETH
2.50
20.39
17.89
0.44
As NXM Book Value seemed to increase in January, a new LP position was created with increased lower and upper bound to capture the fees while WNXM price remained in the range.
As a part of an expanded universe of strategies, new Zodiac permissions have been created and successfully tested on Spark, EtherFi, Aave v3, Uniswap v3, and CowSwap.
Inline with karpatkey’s risk management best practices, on-chain monitoring alerts have been configured for the EtherFi staking contract and major weETH liquidity pools.
NXM Tokenomics:
The current circulating supply of NXM stands at 3.07M, down by 5% compared to Dec '24.
Out of the total circulating NXM, NXM composition increased by 1.96%, while WNXM composition decreased in Jan '25.
The NXM Holders composition remained unchanged, while NXM in staking pools increased by 1.89% compared to Dec '24.
The WNXM Holders composition decreased by 3.02%, whereas WNXM in Liquidity Pools grew by 1.05% to nearly 3x compared to Dec '24.
NXM Price:
In January, the NXM spot price consistently traded below its Book Value (“BV”), reaching a maximum discount of 10.2% and a minimum discount of 0.179%. One limit order placed at a 0.18% discount to BV was partially filled.
Due to the significant divergence between the NXM spot price and BV, both Uniswap concentrated liquidity positions moved out of range, resulting in temporary impermanent loss. Given that these LP positions are strategically deployed for the long term, they are expected to return to active bins and resume generating trading fees once the NXM price converges closer to BV.
karpatkey team will continue to closely monitor the NXM spot price and execute WNXM sales when the price moves between BV and BV-2% through either:
Deploy the new permissions payload on Nexus Treasury Avatar Safe.
Swap the incoming cbBTC as a part of Protocol Fee Revenue and allocate to yield-generating strategies.
Once the new permissions are added, allocate the Treasury to additional venues such as Rocketpool (rETH), Etherfi (weETH), Spark (sDAI/sUSDS), Balancer (v2/v3 LP pools), Aura, and Aave v3 Prime Market.
Actively monitor the NXM price to continue the diversification process.
This report summarises karpatkey’s activities and achievements in February 2025, with our focus on selling and diversification of NXM Token.
Financial Results:
Treasury Balance: $5.99M, down from $8.47M in January, mainly due to NXM price variation. This is depicted by the Price Var for Init Bal in the below Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operational Income decreased to $62.9K from $74.1K in January.
DeFi Allocation: 46%, up from 45.8% in January, mostly driven by additional positions in sDAI as detailed below.
DeFi Revenue: $18.4K, down from $25.7K in January. This is depicted by the DeFi results entry in the below Treasury Variation chart.
Full treasury breakdown is available on the Nexus Mutual dashboard at the karpatkey website.
Treasury Operations:
30.7K USDC that had accrued from protocol fees was swapped to DAI and deposited into the Spark(DSR).
To encourage cover purchases, the overall staking period was extended from 24th April 2025 to 23rd October 2025.
During the last 10 days of February, ordinary transaction flows were paused on a precautionary basis following a security incident linked to Safe. Though karpatkey’s Permission, Transaction Building and Execution Layers were unaffected by the incident and able to continue ordinary operations throughout, our team concluded that the initial uncertainty around the cause of this issue warranted a temporary pause in activity. The cause of this incident has since been determined to be a compromised UI, which would not have impacted the treasury funds or accounts we manage. What’s more, karpatkey prevents attacks of this nature by defining narrow approvals for treasury activity using our in-house Permissions Layer, meaning malicious calldata cannot be injected into our authorised transaction flow without specific permissions for those actions. karpatkey also seeks to mitigate the risk of similar exploits by using internal tooling to avoid external dependencies (thereby reducing attack surface area), conducting thorough payload review and simulation measures, and protecting the identity of all signers. We are now working closely with all client treasury units to accelerate adoption of our tooling and Permissions Layer, helping to improve security standards across our DeFi Treasury Network.
NXM Tokenomics:
The current circulating supply of NXM stands at 2.94M, down by 4.7% compared to Jan '25.
Out of the total circulating NXM, NXM composition increased by 2.13%, while WNXM composition decreased in Feb '25.
The NXM Holders composition increased by 1.33% , while NXM in staking pools rose by 0.79% compared to Jan '25.
The WNXM Holders composition decreased by 1.93%, whereas WNXM in Liquidity Pools reduced by 0.19% compared to Jan '25.
NXM Price:
In February, the NXM spot price consistently traded below its Book Value (“BV”), reaching a maximum discount of 11.3% and a minimum discount of 6.5%.
Both Uniswap LP positions shifted out of range as NXM price diverged from BV, causing temporary Impermanent Loss. They should return to active bins and generate fees once NXM price moves closer to BV.
Next Steps:
With Safe resuming operations in its new phase, we plan to deploy the new permissions payload on Nexus Treasury Avatar Safe.
Swap the incoming cbBTC as a part of Protocol Fee Revenue and allocate to yield-generating strategies.
Once the new permissions are added, allocate the Treasury to additional venues such as Rocketpool (rETH), Etherfi (weETH), Spark (sUSDS), Balancer v2 and Aura.
Actively monitor the NXM price to continue the diversification process.
This report summarises kpk’s activities and achievements in March 2025, with our focus on selling and diversification of NXM Token.
Financial Results:
Treasury Balance: $5.1M, down from $6M in February, mainly due to NXM price variation. This is depicted by the change in market value in the below Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operational Income decreased to $41.8K from $62.6K in February.
DeFi Allocation: 44.8%, down from 46% in February, mostly due to withdrawing LP from the Uniswap pool to sell WNXM for WETH.
DeFi Revenue: $16.1K, down from $18.4K in February. This is depicted by the DeFi results entry in the below Treasury Variation chart.
This report summarises kpk’s activities and achievements in April 2025, with our focus on selling and diversification of NXM Token.
Financial Results:
Treasury Balance: $5.03M, relatively unchanged from $5.1M in March. This is illustrated by the change in market value shown in the Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operational income decreased to $39.4K in April, down from $41.8K in March.
DeFi Allocation: 43%, down from 44.8% in March, primarily due to changes in allocations, as detailed under Treasury Operations.
DeFi Revenue: $24.5K, a significant increase from $16.1K in March, primarily driven by ~$5.5K in revenue from the Uniswap V3 LP position, which was negligible in March. This is reflected in the DeFi results entry in the Treasury Variation chart.
Migrated ~31K sDAI to the Sky Saving Rate (sUSDS), as sUSDS offers a better yield at the same risk level as sDAI.
Deposited ~78K in incoming USDC from protocol fee revenue into sky saving rate(sUSDS).
Swapped the incoming cbBTC from Protocol Fee Revenue to WETH.
Staked ~10 ETH on the Etherfi(weETH).
Provided ~$78K of liquidity into a Balancer v2(weETH-rETH) pool. The resulting BPT tokens were subsequently staked on the Aura to maximize yield through boosted incentives.
Withdrawn liquidity from uniswap V3(wNXM-WETH) pool.
NXM Tokenomics:
The current circulating supply of NXM stands at 2.67M, reflecting a 4.41% decrease since Mar’25 and a 13.8% decline since Jan’25.
Within the total circulating supply, the NXM composition has increased by 0.58% since Mar’2025 and by 6.17% since Jan’25.
NXM Price:
In April, the NXM spot price improved but continued to trade below its Book Value (“BV”), with the discount ranging from a maximum of 11.7% to a minimum of 7.2%.
Next Steps:
Deploy a new Uniswap (wNXM-WETH) LP position once the spot price approaches a 2% discount to the book value (BV), in order to help sustain the wNXM price while executing wNXM sales through limit orders.
Explore Morpho Vaults for stablecoin and ETH-based yield strategies.
Deploy incoming USDC and ETH from protocol fee revenue into yield-generating strategies.
Actively monitor the NXM price to support the ongoing diversification process.
This report summarises kpk’s activities and achievements in May 2025, with our focus on selling and diversification of NXM Token.
Financial Results:
Treasury Balance: $7.25M, up from $5.03M in April, mainly due to NXM price variation. This is depicted by the change in market value in the below Treasury Variation chart.
Protocol Fee Revenue to Treasury: Operational income decreased to $28.3K in May, down from $39.4K in April.
DeFi Allocation: 48.9%, up from 43% in April, primarily due to changes in allocations, as detailed under Treasury Operations.
DeFi Revenue: $27.02K, an increase from $24.5K in April, primarily driven by revenue from the Uniswap V3 LP position and NXM staking pools. This is reflected in the DeFi results entry in the Treasury Variation chart.
Deposited ~25.5K in incoming USDC from protocol fee revenue into sky saving rate(sUSDS).
Deployed ~$478K in a WETH/WNXM Uniswap v3 LP position near BV - 2% to support the selling price of WNXM limit orders. The position is currently generating APR of ~10.5% in fees.
NXM Tokenomics:
The current circulating supply of NXM stands at 2.54M, reflecting a 4.97% decrease compared to Apr’25 and a 17.4% decline since Jan’25.
Within the total circulating supply, the NXM composition has decreased by 0.43% compared to Apr '25 but increased by 5.75% since Jan’25.
NXM Price:
In May, the NXM spot price improved but didn’t reach the BV - 2% range and continued to trade below its Book Value (“BV”), with the discount ranging from a maximum of 8.09% to a minimum of 2.44%.
Next Steps:
Explore and expand the allocation to efficient stable yield strategies to meet quarterly budget requirements.
Bi-weekly, deploy incoming USDC and ETH from protocol fee revenue into yield-generating strategies.
Actively monitor the NXM price to support the ongoing diversification process.
This report summarises kpk’s activities and achievements in June 2025, with a focus on the management and diversification of NXM token holdings.
Financial Results:
Treasury Balance: $7.13M (on June 30th), down slightly from $7.25M in May, due to market fluctuations. See the Treasury Variation chart below.
Protocol Fee Revenue to Treasury: Operational income increased to $57K in June, up from $28.3K in May, driven by increased protocol activity.
DeFi Allocation: 49.5%, up from 48.9% in May, primarily due to strategic changes in allocations, as detailed under Treasury Operations.
DeFi Revenue: $17.4K, a decrease from $27.0K in May, primarily driven by decreased yield in NXM staking pool positions. This is reflected in the DeFi results entry in the Treasury Variation chart.**
Migrated ~100.5K aEthUSDC from Aave v3 to sGHO, which offers a higher yield (~8.05% APR compared to 3.4% APR), with a similar risk profile.
Deposited ~60K in incoming USDC/ETH from protocol fee revenue into sGHO to enhance returns.
As a part of an expansion into new investment strategies to optimize treasury performance, new kpk permissions have been created and successfully tested on Balancer v3, Aura, Fluid, Morpho, Aave v3 and Cowswap.
NXM Tokenomics:
Within the total circulating supply, the NXM composition relative to wNXM has decreased by 2.73% compared to May '25.
Within the total circulating supply, the NXM composition relative to wNXM has decreased by 2.73% compared to May '25.
NXM Price:
In June, the NXM spot price remained closely below BV - 2% range and continued to trade below its Book Value (“BV”), with the discount ranging from a maximum of 4% to a minimum of 2.7%.
Next Steps:
Implementing a TWAP-based exit strategy to systematically convert ETH liquid staking tokens (LSTs) into stablecoins, capturing ETH price upside and stabilising treasury value.
Once new kpk permissions are live, migrate low-yield or idle USDC from protocol revenue into higher-yielding opportunities to meet budget requirements.
Stake idle NXM tokens across multiple Nexus Mutual staking pools to earn additional treasury income and diversify risk.
Actively monitor the wNXM price, and Uniswap LP position, to support the ongoing diversification process and financial objectives.
