Nexus Mutual Overview

What is Nexus Mutual?

Nexus Mutual is an Ethereum-based alternative to insurance allowing members to buy coverage against material losses when transferring funds into smart contracts or keeping them with a custodian. Members hold NXM tokens representing proportional ownership of the mutual, and are responsible for governance, capital provision, and risk and claims assessment.

Main Features
Industry leading on-chain protection
Comprehensive Cover
Superior protection for a range of risks
Protocol Cover
ETH Slashing Cover
Blockchains
Ethereum

Related Apps

  • A decentralized insurance protocol that uses peer-to-pool lending to provide the best rates for cover buyers and reserve providers. It offers protection for possible failure of a protocol or asset and...

    Decentralized Finance ·
  • A DeFi Dapp that provides decentralized insurance coverage for over 60 protocols on 8 different blockchains with optimized pricing that can reduce costs up to 60% compared to other protocols, and lowe...

    Decentralized Finance ·
  • Bumper is a decentralized insurance DeFi protocol on Ethereum, where liquidity providers transfer asset price risk to those willing to pay a premium. The stablecoin reserve of Bumper ensures that pric...

    Decentralized Finance ·

Frequently asked questions

Nexus Mutual covers a range of risks including failures in individual protocols, penalties and missed rewards for ETH validators, depegging events for interest-bearing tokens, losses on centralized exchanges, and more.

On Nexus Mutual, risk sharing works through the participation of members who can buy cover products to protect against supported risks. The cover capacity is sourced from staking pools, which are individual pools where members with risk and pricing expertise can create and manage staked NXM, underwrite risk, and earn a fee. In addition, members can delegate their staked NXM to provide underwriting liquidity to risk experts and earn rewards when other members buy cover. The security of the Nexus Mutual protocol is ensured through code reviews by industry-leading auditors and a bug bounty program. When the minimum capital requirement (MCR%) is met, members cannot sell their NXM, as the capital is needed to back risks and distribute them among members, eliminating the need for a centralized entity.

Yes, you can buy cover for multiple loss events with one policy on Nexus Mutual. The platform offers multi-event coverage, which means that if you suffer a loss, you can file a partial claim and receive a payout, while the remaining cover amount still protects your assets. This provides comprehensive and adaptable protection to meet your changing needs.

In Nexus Mutual, the money is owned by the members. Only members can hold NXM, which represents proportional ownership of the mutual, including the capital pool. The capital pool is the money used to pay claims.

Yes, Nexus Mutual has already paid over $17M+ to members who suffered a loss due to exploits and technical failures.

Claims on Nexus Mutual are assessed and paid through a voting process by members who have staked NXM tokens. The cover wording document for each cover product outlines what is included and excluded in the coverage. Members can vote on claims and take into account the specifics of each event. Voting is rewarded, and members are incentivized to vote honestly. If a legitimate claim is denied, the staked NXM of the claims assessors could be burned. Nexus Mutual has already paid over $17 million in claims. The money in Nexus Mutual is owned by the members, who hold NXM tokens representing proportional ownership of the mutual and its capital pool. Members can launch staking pool businesses on top of Nexus Mutual and assess risks in specific areas. NXM cannot be withdrawn when the minimum capital requirement (MCR%) is less than or equal to 100%. Nexus Mutual is a member-powered insurance alternative that allows members to share risks. Risk is managed in individual staking pools, and members can buy cover products from these pools.

Yes, Nexus Mutual has already paid over $17M+ in claims to members who suffered a loss due to exploits and technical failures.

Last updated: