Nexus Mutual was notified by M11 Credit and Maple Finance of issues with specific loans in the M11 Credit wETH lending pool.
Nexus Mutual took swift action to initiate the 10-day waiting period to withdraw all available funds from the M11 Credit pool on Maple, following a default by Orthogonal Trading and allegations that they misrepresented their financial position to M11 Credit.
This development does not impact Nexus Mutual’s day-to-day operations or the ability to pay claims. Expected losses represent an estimated 1.5% — 2.6% of the mutual’s assets.
Based on what we know currently, Nexus Mutual should expect to take a loss of around 2,461 ETH on the Orthogonal Trading loans. This represents 1.6% of our assets. The Auros situation is more fluid, but losses are expected to be less than to Orthogonal Trading.
Swift action was taken to start the withdrawal process for these funds. There is a 10-day waiting period before any capital can be withdrawn. This decision was made to maximize recovery for Nexus Mutual.
Members should now decide on the appropriate actions going forward, given that there is time to discuss, and direct action from the Foundation is no longer required.
You can read the full update for more information.
Members can discuss the appropriate actions to take in the governance thread.