NMPIP-193: Deprecate Yield Token Cover product (Part II)

NMPIP: Deprecate Yield Token Cover product


Since Yield Token Cover first launched in July 2021, Nexus Mutual members have sold $96.9m in cover and earned $500k in cover fees, with no loss events occurring that led to a payout.

While none of the cover product offerings for Yield Token Cover have resulted in claim payouts, we’ve seen a general lack of demand for Yield Token Cover.

Nexus Mutual members should take action to deprecate (i.e., delist and no longer offer) the Yield Token Cover product, which will effectively be replaced in the future when the Covered Vaults product launches.


Below, you can find a high level overview of the historical cover sold and fees earned for Yield Token Cover products since launch.

Source: Covers Dune Dashboard

The two main reasons for deprecating this cover product are:

  • Lack of adoption. Members have sold $96,968,551.72 (2.21% of total cover sales) and earned $500,219.57 (2.09% of total cover fees), but the current active Yield Token Cover stands at $61,140 at the time of writing. It has been a difficult cover product for users to understand.
  • Soon to be replaced in favor of Covered Vaults. Covered Vaults will serve as a true embedded cover product, which can appeal to a larger market.

For more detailed information, you can refer to the [RFC]: Deprecate Yield Token Cover product post on the forum, which includes members’ comments.


If members support sunsetting Yield Token Cover, Yield Token Cover will be deprecated by:

  • Setting the isDeprecate flag to true on all existing listings under Yield Token Cover

  • Removing “Yield Token Cover” references and associated listings from the Nexus Mutual UI

Proposal status

This proposal will be on the forum for review and comment until Monday (12 June), at which time it be put to an on-chain vote. Previously, this proposal was posted as an RFC on the forum for 12 days, afterwhich time it was moved to a formal NMPIP.

  • Open for comment until 12 June

On-chain vote (12 June)

Members can now review and vote on this NMPIP in the Nexus Mutual UI. Both the Custody Cover and Yield Token Cover proposals have been combined since feedback was minimal.

Outcome of vote

After the three-day voting period ended, members unanimously voted to deprecate Custody Cover and Yield Token Cover, with 448,026 NXM worth of votes cast to accept the proposal.

This proposal has been executed, which means Custody Cover and Yield Token Cover have both been deprecated–members can no longer purchase coverage across these two cover types and any staking pool managers can re-allocate any NXM staked against these two product types.

Source: Nexus Mutual UI in Governance tab