Safe mining
During September Nexus Mutual saw a surge in covers being purchased due to SAFE mining. During this time 1137 covers were purchased through the yInsure distributor contract totalling $1,623,094 (USD) in cover costs.
Active cover amount went from $84.9m on September 13th to $237m on September 14th. The minimum length for any cover is 30 days which meant that on October 14th active cover dropped back down to $74m.
Impact
After 30 days the active cover value dropped back down to $74m. During this time our systems were tested by the sudden high volumes of cover being sold. Subsequently we welcomed 942 new members between 1 September and 1 October.
This increase in demand on the Nexus systems has helped us to identify bottlenecks and opportunities for improvement; we have used these lessons to influence our roadmap. There were no claims on any of the covers purchased through the yinsure contract which means that all of the cover prices contributed to the mutual by directly increasing the capital pool thus benefitting all mutual members.
Roadmap
- ✔[implemented] Proof-of-Loss
- 🧪[testing] Enabling Investment Earnings
- 🛠[building] MCR smoothing and shifting on-chain
- 🛠[building]Stacked Risk Cover
- ✍[designing] Demand based Pricing
- ✍[designing] Staking 3.0
- ✍[designing] Enabling investment earnings
Long term Nexus
Ultimately insurance is a game of incentive alignment. In the short term there are clear conflicts of interest but long term the incentives converge. Initially, when building Nexus, we need to be adaptable and responsive to the wider ecosystem but we need to do this through the lens of focussing on the long term goals. Much like getting a flywheel into motion, there is no single defining action but many actions aligned to the same long term goals that contribute to the first revolution of the flywheel, and then the momentum slowly builds.
We’re building a protocol for the long term. Risk manifests itself over time and Nexus needs to be stable and reliable so that we can be there for our members in times of need. One way Nexus encourages long term capital is the 2.5% sell spread on withdrawals which has collectively benefited long term members by leaving an additional 10,251.77 ETH in the capital pool over the past 6 months.
The traditional insurance industry isn’t fast paced and doesn’t focus on the short term, but we know that DeFi is different. At Nexus we’re somewhere in the middle. Building and shipping products efficiently is always our goal but we also have to be able to pivot to meet the evolving demands of our members and the wider DeFi ecosystem. As one example, we’ve seen staking evolve from the original staking system when we first launched to the current pooled staking system and we’re still working on tweaking it to meet the needs of our members for the long term. Staking 3.0 will be the next step towards getting the staking system right which is a top priority because it’s a critical part of the system.
Our roadmap is constantly evolving based on our members’ needs and we’re always happy to hear feedback; if something isn’t right let us know.
For detailed and technical discussions on our roadmap use our forum.
For community conversations on all topics related to Nexus join our Discord.
For Telegram updates join the announcements channel and discussion group.
For all stats and data visit the Nexus tracker built by Richard Chen.
