Nexus Mutual DAO Treasury Community Update – May 2026
Introduction
This is the May 2026 Community Update to the broader Nexus Mutual Community, aimed at increasing transparency and awareness around treasury activities.
NXM Token Update
wNXM Token Performance
May was a broadly negative month for digital assets, and wNXM was not immune. wNXM opened the period strongly, gaining roughly 8% in the first week to a month-high around 6 May before retracing alongside the wider market through the back half of the month. Indexed from 100 at the start of the period, wNXM ended May at 91.1, BTC at 94.6 and ETH at 87.7. Over the full month wNXM declined approximately 8.9%, outperforming ETH (-12.3%) while underperforming BTC (-5.5%). Bitcoin was the most resilient of the three, peaking near +5% mid-month before giving back most of those gains; Ether was the weakest, extending the relative softness in ETH-correlated assets seen in prior months.
wNXM Trading Volume
Trading volume for wNXM during May 2026 totalled approximately $4.14M across 31 trading days, with an average daily volume of approximately $133.4k. Activity remained consistent with the relatively thin liquidity profile of wNXM, with no unusual concentration or volume spikes during the period.
DAO Financial Update
Treasury Update
Asset allocation:
- Treasury balance of $6.99M as of the end of May 2026 (snapshot 1 June 2026, 00:00 UTC).
- Capital utilisation of ~85.4%, with $5.97M deployed across DeFi protocols and ~$1.02M held in liquid token balances. Utilisation was lower than in recent months due to an elevated idle USDC balance (~$0.79M) held at period-end pending redeployment.
- Yield generation: the treasury generated approximately $10,954 in strategy (DeFi) yield for the month, equivalent to an approximate annualised return of ~1.7% on NXM staking, ~3.3% on stablecoin strategies and ~2.4% on ETH / liquid-staking strategies.
- Marked-to-market valuation: decreased by approximately -$252,274, driven by NXM and ETH price depreciation over the month. Combined with yield, the treasury recorded a net change of approximately -$241,320 for May.
The decline in headline treasury value over May was almost entirely a function of price: the largest single driver was the mark-to-market move on the staked-NXM book as NXM fell roughly 9% on the month, compounded by a ~12% decline in ETH that weighed on the liquid-staking positions. Strategy yield remained positive across every protocol and partially offset the price drawdown. The stablecoin and ETH-yield books continued to perform in line with prevailing market rates.
Protocol Distribution
The treasury’s DeFi allocation is distributed across 7 protocols, maintaining a diversified deployment across NXM staking, stablecoin and ETH yield strategies. The largest position is Nexus Mutual (Staked NXM) at 65.6% of total DeFi funds ($3,917,726). Other positions include: Sky (11.7%), Aave (8.3%), Morpho (5.7%), EtherFi (3.4%), StakeWise (2.7%) and Gearbox (2.5%). Separately, the treasury held approximately $1.02M in liquid balances at period-end, predominantly USDC (~$0.79M) alongside unstaked NXM (~$0.20M).
| Protocol | Allocation % | USD Value | Strategy |
|---|---|---|---|
| Nexus Mutual (Staked NXM) | 65.6% | $3,917,726 | Staked NXM across 4 active staking pools (Hugh #2, Unity Cover #5, BraveNewDeFi #22, Open Cover #8) |
| Sky | 11.7% | $700,886 | USDS deposited in the Sky Savings Rate / sUSDS (stablecoin yield) |
| Aave | 8.3% | $495,598 | GHO, USDC and USDT supplied via Aave (stablecoin yield) |
| Morpho | 5.7% | $341,151 | kpk USDC Prime V2 vault (stablecoin lending) |
| EtherFi | 3.4% | $203,760 | eETH (liquid restaking) |
| StakeWise | 2.7% | $162,179 | osETH (liquid staking) |
| Gearbox | 2.5% | $149,955 | wstETH v3 Earn pool (ETH lending) |
Allocation percentages are expressed as a share of total DeFi funds ($5.97M), consistent with prior reports. Figures reflect period-end (1 June 2026, 00:00 UTC) valuations.
Other
During May the treasury closed its Staked NXM – Sherlock #11 position (approximately $0.42M at the time of closure). Allocation changes over the month included the introduction of the Sky Savings Rate (USDS) and a Gearbox wstETH Earn-pool position, and the exit of the previous Aura stablecoin LP position. These movements left a temporarily elevated idle USDC balance at period-end, which is expected to be redeployed in the following period.
Community Updates
Permissions Update Request (PUR) #6. This is currently under review and is a routine extension of the manager’s permissions. Once approved, it would enable:
- Approve / Deposit / Withdraw access to a new Nexus Mutual RWI Vault;
- Approve / Deposit / Withdraw access to Morpho’s USDT Prime vaults (v1 and v2); and,
- withdrawal permissions for the treasury’s existing Aave positions (waETHLidoGHO, waETHUSDC and waETHUSDT).