Nexus mutual code#

Any member can be voted into the advisory board to replace a board member.Īs a member, you can suggest changes to the Nexus Mutual blockchain protocol by submitting a proposal through its governance platform. The advisory board is a group of five members that includes company founders alongside industry experts in smart contract security, insurance and mutuals, as well as legal and regulatory matters. Nexus Mutual is governed by its members and an advisory board through its DAO. Blockchain and Insurance: Governance on Nexus Mutual

Nexus mutual code#

The result is a dynamic marketplace of community stakeholders working toward perfect code and mitigating financial losses. Coverage can last from a day to years, and the insurance staked can range from 1 ETH to 50,000 DAI. Examples of smart contracts covered in 2020 include many leading decentralized finance (DeFi) platforms like Compound, Uniswap, Maker, Curve, and Aave. Risk Assessors are then rewarded with a percentage of the fee paid by the entity requesting coverage.Īll Ethereum smart contract addresses can be covered by Nexus Mutual - provided that there is enough NXM staked to cover claim liability. The final cost of the coverage is determined by a specific formula that uses inputs like the amount of coverage requested, the time period, and amount of NXM staked by Risk Assessors. Once staked, Risk Assessors’ tokens are locked up for 90 days. These stakes are used to pay for claims in the case of a breach, so Risk Assessors are incentivized to only stake on contracts that they trust.

Risk Assessors stake NXM towards the coverage pool. If Risk Assessors judge a smart contract to be safe, coverage can be initiated. The price of coverage is determined by Nexus Mutual members called Risk Assessors, who typically have expertise in smart contract auditing. Pay a new member fee of 0.002 ETH and undergo a Know-Your-Customer (KYC) and Anti-Money Laundering (AML) screening Purchase coverage by authorizing a transaction via your Metamask wallet and pay with NXM, ETH, or DAI Specify the amount, time period, and currency (ETH or DAI) for your coverage Specify the smart contract address for which you would like coverage To purchase Smart Contract Cover you must: The price of NXM increases when the mutual is sufficiently capitalized, and decreases when it requires more funds. The price of NXM changes in accordance with how much capital the mutual holds, compared to the amount of capital it needs to fulfill its existing liability across claims. Additionally, NXM tokens can only be transferred between Nexus Mutual members. NXM can only be purchased on the Nexus Mutual platform, and is not available on exchanges. NXM’s governance protocol includes the ability to assess the risks of covering particular smart contracts by voting on whether to accept claims, making NXM a multi-faceted utility token that fuels the NXM ecosystem. NXM can then be used to purchase insurance coverage and to participate in Nexus Mutual’s governance process. Nexus Mutual uses a system of democratized risk assessment and pooled claim staking to protect against financial loss.Īnyone can become a Nexus Mutual member, which allows them to purchase Nexus Mutual’s native token, NXM. Moreover, millions and sometimes billions of dollars in value is executed through smart contracts, so managing risk becomes an immense and urgent challenge. As smart contracts are an emerging technology often written in Solidity, a new coding language, ensuring watertight code without any errors or risk vectors is already difficult enough. Nexus Mutual initially launched with one type of coverage: Smart Contract Cover, which provides protection against smart contract bugs and hacks. Nexus Mutual calls on its community to assess and accept coverage proposals, and to fund the pools that ensure coverage - all with added rewards built in through the NXM token. The Nexus Mutual DAO holds members’ funds in a risk sharing pool, and uses those funds to pay out claims. Nexus Mutual is registered in the United Kingdom as a limited by guarantee business, which is a designation usually used by nonprofits, and is structured and governed as an Ethereum-based decentralized autonomous organization (DAO) wholly owned by its members. The Nexus Mutual blockchain is disrupting the traditional insurance model and rewiring stakeholder incentives to proactively assess risk while collectivizing financials. The $4.3-trillion USD insurance industry is dominated by complex conglomerates with highly entrenched models and processes driven by premiums, profit margins, and reinvestment. Nexus Mutual is a blockchain-based platform that offers decentralized insurance products.