What is Nexus Mutual (NXM)?
Nexus Mutual is a decentralized insurance solution on the Ethereum platform.
Nexus Mutual uses blockchain technology on Ethereum to create a risk-sharing pool that aims to hand over insurance ownership to everyone involved. Participants are all members of Nexus Mutual, and members can purchase insurance to protect themselves from smart contract code attacks.
Initially, Nexus Mutual launched only one product: Smart Contract Insurance. The aim is to give the Ethereum community the ability to protect against hacks in value storage applications (known as smart contracts).
In the future, they plan to provide insurance for cryptocurrency wallets, as well as more standard products, such as earthquake risk insurance.
Highlights of Nexus Mutual
Nexus Mutual’s insurance model can be understood simply as follows:
Nexus Mutual replaces the idea of a traditional insurance company, which is wholly owned by its members without being held by a centralized organization. It is mutually compatible and each member may have tokens representing his or her membership.
This model promotes participation because members will receive economic incentives when participating in risk assessments, claims assessments, and governance.
Nexus Mutual simplifies valuations when fund members do not have to prove that they have any material losses when submitting a claim. When a claim is proposed, the remaining members of the fund will vote to approve or reject this request.
What can Nexus Mutual members do?
- Buy smart policy insurance.
- Contribute to mutual funds and hold NXM tokens.
- Stake on smart contracts to prove that contract is safe and to earn rewards.
- Make governance recommendations.
- Vote on proposals put forward by the team or other members.
- All members of mutual funds are sharing risk with each other.
What is NXM Token and what is used for?
NXM is the native token of Nexus Mutual, which represents membership in the mutual fund and is co-owned by all members.
NXM runs on the bonding curve, a mathematical curve that determines the relationship between price and token supply.
It can only be purchased and sold using the Nexus Mutual app. Only nexus mutual members can hold NXM tokens.
NXM is used in the following 4 cases:
Buy insurance
Currently, you can buy insurance with ETH, DAI or NXM. If you pay with ETH or DAI, the system will convert to NXM, then immediately use that NXM to buy insurance. 90% of the NXM used to purchase insurance will be burned, 10% will be retained by the Member and can be used as a deposit when required.
Administer
All members of the foundation can vote on proposals or submit a new proposal. NXM is a voting weight in governance and will be locked within 7 days to ensure that voting members are accountable for the decisions they make. Participating in the vote will earn NXM.
Claim assessment
NXM can be asked by members of the stake fund to vote on claims for a period of time and will be refunded after this time. If the voter cheats, the amount of NXM that member has staked in will be burned.
Voting against the consensus resulted in the number of tokens already staked in being locked in for a longer period of time.
Voting by consensus will earn NXM.
Assess risk by providing insurance capital
Members of the fund can participate in risk assessment by providing insurance capital through the stake of NXM tokens into the selected smart contract address. After that, the bet will be locked and can be cancelled at any time depending on the 90-day withdrawal period.
NXM can be staked to evaluate safe smart contracts and reduce insurance prices. When the insurance of that smart contract is purchased, the risk assessor will earn NXM.
Some basic information about nexus mutual (NXM)
- Token Name: NXM Token.
- Ticker: NXM.
- Blockchain: Ethereum.
- Contract: 0xd7c49cee7e9188cca6ad8ff264c1da2e69d4cf3b.
- Token type: Utility + Governance.
- Token Standard: ERC-20.
- Total Supply: 7.504.457 NXM.
- Circulating Supply: 7.504.457 NXM.
Token model
The Tokenized Mutual Model
Members’ rights will be represented by tokens. Tokens can be used to purchase insurance as well as participate in claims assessments, risk assessments and governance. All the money raised from the token purchase belongs to the members.
Capital Efficiency (Capital Efficiency)
The encryption of mutual funds helps to rapidly expand the insurance capital fund, with a model that encourages capital inflows only when required.
Aligned Incentives
With all members benefiting from the platform’s success, these peer-to-peer incentives will foster community spirit rather than existing adversarial and unbalanced relationships between individuals and organizations.
Value and Performance (Value and Performance)
The token price is associated with the acceptance and underlying operation of the fund, rather than speculation.
Continuous Token Model
Nexus Mutual uses the Continuous Token model. You can understand this model that instead of pre-selling tokens during the launch phase, tokens will be minted as needed through a variety of means. The tokens are then used for the services given in the network.
Nxm price depends on the financial performance of the fund.
NXM can be purchased and exchanged directly through the platform.
NXM Token Exchange Rate Today
How to get Nexus Mutual?
You need to become a member of Nexus Mutual to buy NXM tokens. NXM does not have a private sale.
Nexus Mutual Trading Support Platform
Only Nexus Mutual members can buy, hold, and use NXM. Therefore, you can only buy this token on nexus mutual platform.
They currently have no plans to list this token on exchanges due to the model nature and the requirement that the token belong only to members of the mutual fund.
Nexus Mutual also has a community project called Wrapped NXM (wNXM). This is an ERC20 token supported by 1:1. wNXM has been listed on the floor as Binance, Houbi, MXC,… However, this wNXM token does not allow holders to interact with mutual funds for voting, staking or administration as functional as nxm functions.
Nexus Mutual Storage Wallet
You can transfer tokens, as long as the address transferred to is also a member of Nexus Mutual – the transaction will not succeed if the recipient is not a member.
NXM is an ERC-20 token so you can store it on any wallet that supports ERC-20. However, its transfer is restricted (at the smart contract level) within the framework of the member’s Ethereum addresses (i.e., this address has completed kyc verified as a member of the fund to be able to store NXM).
The future of Nexus Mutual
Not only did the insurance amount to $235,241,926 (635,531 ETH), nexus mutual recently reached more than 3% of the total value locked in DeFi, up from 0.5% in just 7 days.
An impressive number is true to what this Defi array is developing. The price of the token according to the bonding curve model means that the price increases with the size of the purchase. Simply put, the more insurance is purchased, the more the token price will increase.
Nexus Mutual (NXM) basics
You can refer to some of the factors related to Nexus Mutual summarized below to be able to make appropriate investment decisions.
The idea of the product.
The insurance economy is driven by diversification. The more individual risks are lumped together, the less capital is needed so that all requirements can be addressed. The benefits in terms of scale are quite significant and community models do not have the means to access easily.
Team
Hugh Karp is the founder and board member of Nexus Mutual. He is an insurance expert and statistician with 15 years of experience in a variety of insurance and reinsurance roles including the position of Chief Financial Officer of Life Operations in the UK for a global reinsurance company. He has been passionate about blockchain since 2011.
Participants
Partners
Roadmap
Their broader vision is to enable the acceptance of any kind of risk: smart contract risks, oracle risks, cryptocurrency risks as well as risks outside cryptocurrencies such as earthquakes and hurricanes. So some basic platform products will create more products in the future, and these products are more specific products that can help Nexus Mutual grow in the near future.
Summary
So through this article you have had the most overview of the Nexus Mutual project as well as their native token (NXM). The hope is that with the current wave of Defi, insurance information like Nexus Mutual can give you a look at another aspect of Defi.
See ya in the next article !
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