Today, we are excited to announce the launch of Nexus Mutual V2, the infrastructure layer where anyone can share risk and build the future of on-chain protection.
As members of the mutual, we believe anyone should be able to share risk and protect themselves. When Nexus Mutual first launched in 2019, we were the first insurance alternative to offer crypto-native protection that allowed people to secure their assets with smart contract cover.
To date, Nexus Mutual members have sold more than $4.3b in cover, paid over $14m in claims, launched five cover products, and set the standard for on-chain protection.
V2 is designed to be efficient, flexible, and composable–a foundation for members to build the on-chain risk marketplace.
"The V2 upgrade is the most significant development for Nexus Mutual since our launch almost four years ago. It sets a new strategic direction for our protocol, transforming Nexus Mutual into a platform for sharing risk. What excites me the most is that businesses can now build on top of the Nexus Mutual protocol to share any risk–not just crypto-related risks. To me, this is what DeFi is all about–providing access to those who truly need it." - Hugh Karp
V2 reengineers the protocol into a risk management infrastructure layer, where experts can launch staking pools, manage and price risk, develop new products, and build distribution networks to give people access to industry-leading on-chain protection.
Members who do not have the time or technical knowledge to assess risk can stake and delegate their NXM to the staking pool of their choice. As cover is purchased from the pool, members earn NXM rewards.
With this new staking model, specialists can build businesses on top of the Nexus Mutual protocol, bootstrap capital by attracting delegations, assess risk and earn revenue.
Staking pool managers can underwrite existing cover products or propose new cover products to expand protection to new crypto-native and real world risks. Flexible pricing gives members the opportunity to offer a greater range of products.
Through product development, the mutual can diversify exposure to risk, expand into new markets, and improve access to cover around the world.
V2 was designed to allow for seamless integrations. People must be able to buy protection at the point of deposit and in third-party user interfaces (UIs).
Protection aggregators, risk management businesses, protocol teams–anyone can integrate and give people access to on-chain protection directly in their UI.
When someone builds a cover integration, they can set a commission and earn a fee whenever protection is purchased. Get rewarded for improving access to protection.
Exposure to risk changes; your cover should, too. To give members greater control, cover has been tokenized, which allows people to:
To offer a more frictionless experience, Nexus Mutual is working with BootNode to develop covered vaults–natively covered ERC-4626 vaults that automatically buy cover for all deposits using a portion of the yield generated from the underlying strategy.
We are working to make protection as easy as possible for DeFi users. Covered vaults are coming soon.
As part of the Nexus Mutual V2 launch, the user interface (UI) has been redesigned and updated with the mutual's new branding. The staking and claims interface have been expanded and refreshed. With the upgraded user interface, members can enjoy greater transparency and an improved user experience.
Explore the updated UI: https://app.nexusmutual.io/
If you have any feedback on the new UI, please share your thoughts in the user interface feedback discussion on Discord here.
Throughout the development process, the Nexus Mutual V2 codebase has been tested and reviewed by the BootNode team in addition to the engineering team. The V2 code has been extensively audited by iosiro over the course of November, December, February, and early March. Any vulnerabilities discovered during the auditing process were addressed and mitigated. For more information, you can review iosiro's audit of the Nexus Mutual V2 codebase.
Nexus Mutual works with Immunefi to manage our bug bounty program. Through this program, whitehat hackers are incentivized to disclose vulnerabilities in the mutual's smart contract system in exchange for payouts equal to the level of severity.
Read our documentation to learn more about Nexus Mutual's commitment to security.
Over the next several weeks, we will share announcements about the risk experts launching the first staking pools, new integrations, exciting new features, how users can migrate from V1 to V2, and other resources, so people can learn more about the V2 protocol.
We're thrilled to share Nexus Mutual V2 with our members and community. There is more to come, but in the meantime, you can review the V2 documentation.