Protocol Integrations + Growing Cover Demand

Big fan of Nexus here! One observation where i’d be keen on ideas and thoughts of feasibility.

A massive increase in cover sells to me seems to be mainly limited by the following factors:

  • kyc (which is gonna be solved with wartotle)

  • growing amounts and types of insurance/protocols (which is happening)

  • discoverability and ease of use (which armor explored with Smart Cover System, and protocols like anchor have demonstrated that displaying nexus insurance in their interface massively grows demand by increasing discoverability)

  • gas cost of usage

Focusing here on the last two ones! Think it would be extremely valuable to build very simple native integrations for protocols to enable one-click auto-insurance during duration of using the protocol, optimized for gas and duration.

Imagine depositing into aave or compound and having a button to get it insured during duration of usage.

This probably breaks down into two separate activities

  • main and simple one, are in-app links to nexus similar to anchor… basically reminding users that there exists a way to get insured, which should obviously drive discoverability and demand for cover. could probably be worthwhile to explore partner programs where these protocols could earn a part of the cover sell profits mid-term, as well as more sales efforts to get in touch with all these protocols etc.

  • second, much harder one where i’m not sure if its even feasible would be a simple integration for a protocol like anchor and its user to get one-click insurance while depositing into their app.

on current gas cost for usage and underwriting: are there ideas how to massively reduce transaction cost to get insured?

another one could be similar to armors proposal selling automatic insurance for a user, which is basically automatically buying insurance for all protocols used during the duration of usage that are covered by nexus

Think it’s worth exploring these. would be curious about input and thoughts?

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Thanks for your thoughts here!

I’ll make a few comments on your last two points, as Nexus V2 is being built specifically to address these.

Point of sale-integrations, either referrals or more embedded solutions like covered tokens.

Nexus V2 will enable partner sites to optionally collect commission on referrals they make. In addition the pricing mechanism will be shifted fully on-chain which makes integrations a lot easier. In combination we’re aiming to substantially increase distribution integrations over time because it will be 1) very easy to integrate and 2) financially a no-brainer.

In terms of bundled tokens, V2 will enable others to build a bundled token on top of the protocol which takes in one yield bearing token and outputs a new LP token which is both yield bearing and covered. This type of product gets you the one-click option and allows immediate entry/exit without having to think about the cover.

Gas Costs
We know gas costs are an issue, so we’re tackling it in three main ways:

  1. Optimising gas costs for cover buys, aiming for sub 200,000 gas.
  2. Socialising gas costs, eg through bundled tokens which effectively spreads gas among users via 1 cover for lots of users
  3. Layer 2

Nexus V2 will directly deliver 1) and it will enable 2). Layer 2 will come later after we’ve delivered V2.

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Thanks for the awesome answer, Hugh! Couldn’t be more excited to see it getting tackled! Anything were Nexus is still bottlenecked on speed of implementation, sending more devs your way?


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