Nexus Mutual

Staking pool managers in the Nexus Mutual ecosystem are offering 7.5m $DAI worth of capacity for Spark Protocol Cover. Staking pool 3 managed by Ease underwrites Spark at a yearly cost of 1.25%, while other pool managers charge between 2-5% yearly. Check out the Spark Protocol Cover listing in the Nexus Mutual UI.

The AMA with GMX_IO and NexusMutual is scheduled for Wed. Feb 21 at 1 pm EST. The discussion will focus on #DeFi security in the #GMX ecosystem with participants from GMX, Nexus Mutual, and OpenCover.

OpenCover enables GMX v2 liquidity providers to purchase Protocol Cover, protecting their crypto assets. Users can get their first cover for free, with coverage available on Layer 2 networks. It provides on-chain protection accessible to all, with the option to safeguard GM tokens on GMX v2 and save on L1 fees.

dHEDGE, a decentralized non-custodial asset management protocol on Optimism & Polygon, introduces Protocol Cover for users to purchase. Users can earn high APYs on Toros using dHEDGE. Learn more about dHEDGE and Toros to understand the protections provided by Protocol Cover.

Maverick Protocol Cover offers protection against risks in DeFi on any EVM-compatible network. It covers hacks/exploits, oracle failure/manipulation, severe liquidation failures, and governance takeovers. Teams building on Maverick can collaborate with the Nexus Mutual community to enhance user protection.

Nexus Mutual had a successful year in 2023 despite the bear market. They sold $358.76m in cover, earned $1.34m in fees, and paid out $8.88m for claims. The Mutual also earned $4.04m from investments, $116k in DAO commissions, and $5.4m+ in value through RAMM buybacks. Additionally, $2.2m has been recovered from claim reimbursements. Overall, the net earnings for 2023 were $4.14m, showing positive growth. Looking ahead, the focus is on cover sale growth in 2024.

Nexus Mutual has partnered with OpenCover to offer deposit protection on any EVM compatible chain. This means that if users buy cover on one chain, their deposits on other chains will also be protected. This partnership ensures comprehensive coverage for users' funds regardless of where they are invested.

Reentrancy attacks involve looping deposit and withdrawal requests in a smart contract to steal funds. An example is withdrawing from an ATM without the account balance being updated. The Fei/Rari attack resulted in $80m in losses and led to payouts for Rari Protocol Cover holders. Reentrancy vulnerabilities have caused several DeFi hacks, such as those in Curve, Vyper, Conic, Sturdy, and Sentiment. Nexus Mutual aims to educate more people about common attack types in DeFi.

EigenLayer will unpause restaking on 5 Feb and remove caps for any LST. They will allow $sfrxETH, $mETH, and $LsETH for restaking. EigenLayer Protocol Cover protects against risks in DeFi and includes protection against hacks/exploits, oracle failure/manipulation, severe liquidation failures, and governance takeovers. Anyone building on EigenLayer can work with the Nexus Mutual community to better protect users against hacks/exploits.

OpenCover is a platform that offers cover for crypto assets on various Layer 2 solutions such as Optimism, Arbitrum, and Base. They are currently offering to pay for the first cover and provide lower gas fees. The cover is underwritten by Nexus Mutual and over $18m in claims have been paid to date. OpenCoverDeFi is now providing cover on Layer 2 solutions.