Nayms and Mountain Protocol Collaborate to Introduce Innovative Industry Loss Warranty (ILW) Utilizing USDM as Collateral

Nayms, the world’s first regulated digital asset insurance marketplace, is thrilled to announce a groundbreaking collaboration with Mountain Protocol, the first prudentially regulated yield-bearing stablecoin issuer. Combining both products, they have created a cutting-edge Industry Loss Warranty (ILW) that addresses critical capacity needs in the insurance market.

The new ILW, backed by USDM issued by Mountain Protocol, provides a unique opportunity for investors and capital providers. Here are the key highlights:

• Industry Loss Warranty (ILW): Nayms and Mountain Protocol have collaborated to develop an innovative ILW. This financial instrument bridges the gap between traditional insurance and the digital asset ecosystem, offering much-needed capacity to Prospero Re, a leading player in the traditional insurance industry.
• Additional Yield for Capital Providers: With the creation of this new ILW, capital providers will receive dual yield: a portion from the premiums of the policy, and a portion from the USDM rewards. This makes USDM-backed policies more attractive to capital allocators.
• Collateralization with USDM: The ILW is collateralized using USDM, a stablecoin issued by Mountain Protocol. By utilizing USDM, investors gain exposure to real-world asset (RWA)-backed yields while maintaining stability through the stablecoin’s peg to the US dollar.
• Mountain Protocol’s Unique Offering: Mountain Protocol, as Bermuda’s first fully regulated stablecoin issuer, gives rewards to USDM holders simply for holding USDM. In recent months, this rate has been 5% APY, combining the programmability and safety of stablecoins with USDM rewards.
• Transparency and Smart Contract Integration: As more investors seek on-chain solutions, Nayms and Mountain Protocol are committed to providing transparency of capital on the blockchain. The tokenized and liquid trading markets, coupled with seamless smart contract integration, create a robust ecosystem for digital asset insurance.

“Nayms’ product offerings are a natural fit to Mountain Protocol’s USDM. In traditional insurance, collateral is deployed on US Treasury products to complement the returns from premiums; why would the blockchain-enabled equivalent be different? Now that we have a full stack of insurance infrastructure, with all the transparency, composability, and auditability of blockchains, it is a matter of time for the $100’s of billions in reinsurance capital to flow on-chain,” said Martin Carrica, CEO and Founder of Mountain Protocol.

If you want to learn how USDM differentiates itself from other stablecoins, or are looking for ways to earn yield on your capital, check out an episode of The Missing Link with Martin Carrica for more information:

About Nayms
Nayms SAC Ltd. is the world’s leading crypto-native insurance marketplace. The company is registered and regulated in Bermuda with licences for both insurance (IIGB) and digital asset (DABA Class F) business. It operates as a bridge between alternative capital and a wide variety of property and casualty risks. It provides the technical and legal infrastructure over which relevant stakeholders, including insureds, insurers, brokers, and underwriters, can come together to capitalise and transfer risk on-chain. Building on Ethereum and Base, Nayms’ diverse team uses smart contracts to enable on-chain insurance placement and crypto-native transactions for collateral, commissions, premiums, and claims.

For more information on Nayms and investment opportunities, contact lachlan@nayms.com or visit the website directly.

About Mountain Protocol
Mountain Protocol is the first prudentially regulated yield-bearing stablecoin issuer, regulated by the Bermuda Monetary Authority. Their yield-bearing stablecoin, USDM, provides permissionless composability, regulatory compliance, and an enterprise-grade setup with a seamless user experience. Its commitment to regulatory compliance ensures a secure and transparent experience for users seeking safe and fair stablecoin.