Wartortle legal analysis

“Wartortle legal analysis is back and we’re looking to see the communities response and react accordingly. :turtle: :turtle:

Edit: there is a summary here: Proposal: Operation Wartortle - #18 by Hugh

Are there any actions being taken in response to the advice? Is there a governance vote planning to move to a Stateless DAO?

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Expect some comms on this very soon. In short, action is being taken and progress is being made. We plan to return to members to confirm direction and next steps.


Thank you for the response.

May I ask why paragraphs 1.14 and 1.15 of the advice (headed Key Legal and Regulatory Considerations) have been censored?

If possible, could somebody publish here a summary of the key points of this advice if the original cannot be disclosed verbatim?

For context, I am part of a DAO which produces analysis of the major DeFi protocols for prospective investors. There are many interesting and positive nuances of Nexus Mutual to cover, and I don’t plan on giving much focus to the legal wrapper, especially as you have indicated that there will be forthcoming changes.

However, it would be helpful to know the innocuous reason - which from my dealings with lawyers in the financial sector I’d guess is the liability concerns of your professional advisors - why the publication of the advice was withdrawn.

I may have a few other questions and I wonder if it would be helpful to consolidate them in one thread, we would be expecting to publish our report on NXM in the next few weeks.

Thanks for your attention. It would have been helpful to have had more time to join the discord and community forums to engage in discussions prior to writing this report, however a poll of our subscribers revealed a particular interest in Nexus Mutual so we are keen to prioritise!

It was taken down in line with the original announcement. Copied below. Basically because NRF requested the advice only be available to members and keeping it up indefinitely increases the risk that it would be shared more widely.

@Nexus Mutant Wartortle advice has been added to Mintgate.

It can be accessed here: https://mgate.io/go/YyWXKg7rOwv1/ and will be removed in 1 week.

You need to log in with an address that holds at least 1 NXM, and sign a message. You will then be able to view the advice. Please keep it confidential, this is a requirement of the lawyers, Norton Rose Fulbright. If we expect to work with them again members need to be respectful of their wishes.

We’ve listed a TL;DR of the advice on the forum previously https://forum.nexusmutual.io/t/proposal-operation-wartortle/485/18?u=hugh

Special thanks to the Mintgate team who have been extremely helpful getting this set-up for us :pray:

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Innocuous as expected. Nexus seems to have done an excellent job respecting professional advisors and the traditional legal/regulatory system while growing, probably due to your leadership. Thank you for the response, if you have time I had one other post…are investment earnings under corp tax @ 19% and does this need to be added back to the financial statements in Dune?

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The investment earnings line item in Dune is probably the weakest one, as it’s a balancing item and therefore reflects some exchange rate movements. Also, it doesn’t include the corporate tax.

You can track the actual assets of the mutual here: 0xcafe...d12b - Zapper.fi

Investment earnings are currently anything over 15,000 stETH, which was the initial deposited amount.

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Thank you very much for your helpful and prompt responses.
Nexus Mutual will be valued in the next instalment of the DeFi Education Substack (defieducation.substack.com)

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Expect some comms on this very soon. In short, action is being taken and progress is being made. We plan to return to members to confirm direction and next steps.

If there is a significant change decided by the membership after we publish, we will likely make an update as Nexus is an important protocol.

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