Nexus Mutual (NXM) Proof of Loss on Blockchain and Towards Staking 3.0 They Know They Can Be ThereOctober 24, 2020
Reportedly, Nexus MutualSmart Contract Cover is changing from a CDS type approach to one where loss of funds must be proven. This will make the product much more sustainable and ultimately lead to lower prices in the long term. Members have approved and it’s going live this week.
Nexus Mutual have lot of other things coming over in their Roadmap. Looks like they are very clear about where they are heading to.
Hugh Karp stated in this own words:
Enabling Investment Earnings: Enabling the mutual to invest its assets (float) into any ERC-20. All additional yield will benefit members directly. Especially interesting with the upcoming proof-of-stake launch and tokenized staking positions.
Moving MCR fully on-chain: More of a technical item, but a key step forward in terms of decentralization. Includes smoothing of any MCR movements to prevent any large token price shocks.
Stacked Risk Cover (working title): New product that covers all risks of interacting with a tokenized protocol. Update will also include some architecture changes to enable new product lines to be added very easily.
Demand Based Pricing: Add dynamic factors to the pricing approach that will be responsive to current supply/demand, reducing the need for governance updates.
Staking 3.0 Review the current staking approach: Remove the 90 day lock-period; Stream rewards over a period; Allow tradable staking positions; Enable delegated staking; Improve scalability.
These changes are not retrospective and they will be only applied henceforth for New Covers.
With the Proof of Loss changes getting voted for by the members, claims must now be submitted with proof of individual material loss. Acceptable proof = verified addresses. Applies to cover #2992 and above.
Sydney Ifergan, the crypto expert opined: “Nexus Mutual (NXM) members have voted to accept proof of loss changes.”
Nexus Mutual Retweeted: “New DeFi tutorial on how to stake NXM on NexusMutual. Nexus provides Smart Contract Cover (aka DeFi insurance) thanks to those staking NXM against DeFi contracts. Learn how to earn a portion of the nearly $1.8M in premiums paid to Nexus since Sept 1st.”
Nexus Mutual (NXM) Road Map
The ever-growing MCR (Minimum Capital Requirement) of Nexus Mutual is proof of how crypto projects’ open governance is making possible meaningful discussions around every part of the business. The Pause Daily 1% MCR growth early this month was an ideal example.
The purpose of systematically growing MCR was to increase on the Cover Capacity. This was necessary due to the overwhelming mismatch between demand for cover and existing capacity.