Hi Guys, Apologies if this a has already been covered somewhere.
I figured here might be the best place for meaningful discussion rather than getting lost in the noise of Twitter and discord.
The details on this apparent partnership seem to be very unclear at present. I appreciate there is so much happening and a lot of the details may not yet be crystallised.
Still, I’d love to get a bit of an understanding of what’s being worked on, and potentially how it could affect both protocols.
This feels like it could be a tremendous inflection point in the life cycle of both protocols and the broader DeFi space.
So if I understand this correctly, Andre has started a facilities for people to deposit a supported token into a insured vault that is somehow underwritten by Nexus Mutual.
Is that correct?
How exactly will yearn fund the cover, will they have a KYCed account which automatically purchases NXM?
What will the cover go against a specific SC or the general Yearn one we have listed?
Will yearn earn then stake thereir own tokens to ensure availability of cover?
Can we the users also stake on this SC?
I presume yearn are getting a cut rate deal on cover somehow? Should that decision be done as a governance vote?
While I’m very bullish on this development, what does Nexus Mutual get out of it?
Are there shield mining incentives? Does a % of the yield generated come back to the mutual?
Can Andre create our own secure vault to generate yield on our reserves, and would that cause a conflict of interest or a negative feedback loop on event of failure.
Some many questions, I’m sure others have some too.