Nexus Mutual Enables Cover for Vesper Deposits
Part of what Vespernauts like about Vesper is the hassle-free nature of the platform. For those looking to further ensure security of their funds, deposit cover via Nexus Mutual is here.
Nexus Mutual’s Cover Solution
Nexus Mutual is a smart contract cover platform that enables token holders to stake their NXM token on accepted DeFi protocols, sharing the revenue for subscriptions and shouldering the burden if funds are ever lost.
Currently, there is roughly $700 million in deposited assets to various DeFi protocols that are protected by Nexus Mutual. The platform has successfully reimbursed claimants that were affected by the recent yDAI exploit as well as an exploit on bZx over a year ago.
Nexus is designed to properly incentivize those shouldering the risk. The result is meaningful yield for miners taking on that risk, and affordable coverage for those looking for additional safety on their deposits.
Using Nexus to Secure Vesper Deposits
Today, NXM holders can cover Vesper through the staking interface and earn 13% APY. (In return for the yield, they may see their deposits slashed or burned should a claim on Vesper take place.) This yield is provided through a VSP mining campaign — 5,000 VSP over the next couple of weeks — known as Shield Mining.
Vesper users and depositors will be able to take out cover on their assets at rates as low as 2.6% per year on Nexus Mutual. If funds are ever jeopardized by contract failure or similar event, the user can place a claim and receive a refund from the Nexus Mutual cover fund. (More information on cover terms.)
For now, this cover enrollment exists on a per-user basis. Individuals interested can optionally opt-in and pay the rate offered. As Vesper continues to adopt additional DeFi integrations, this offering could act as a precursor to platform-wide offerings in the future.