NXM is currently used only to insure against smart contracts vulnerabilities. Moreover, an increase in the Capital pool increases the price of NXM held by the mutual members bringing more success for the platform and benefits to the members. A higher MCR indicates that the Capital pool of the mutual has more funds, and there’s a greater probability of paying all the claims. The Minimum Capital Requirement (MCR) for NXM determines the availability of capital on the mutual for the payment of all present claims. However, you can trade on wrapped NXM (WNXM). The NXM token can only be purchased on the NXM platform. Nexus Mutual is registered in the United Kingdom as a limited by guarantee business. Hugh Karp proudly states on his LinkedIn profile that his mission is to make blockchain and insurance work together. He’s been a blockchain enthusiast since 2011 and has spent the past few years building Nexus Mutual, which has now written over $237m in active cover, covering over 3% of the total value locked in DeFi. He held top positions in the insurance sector and was once the CFO for a global reinsurers’ Life operations in the UK. Karp has 15 years of experience as an insurance professional and actuary. Nexus Mutual was founded by Hugh Karp in 2017 to create a decentralized alternative to traditional insurance. You can pay for cover using ETH, DAI, or NXM. ![]() Nexus Mutual has been developing to cover other forms of risks in the blockchain system. ![]() Presently Nexus Mutual can cover any valid smart contract on Ethereum. If an exploit occurs during the insurance period, and Nexus Mutual members agree that the failure is with the smart contract, then Nexus pays the claim. As billions of dollars in value are executed through smart contracts, so managing risk becomes an urgent challenge. Nexus Mutual initially launched with only one type of coverage: Smart Contract Cover, which protects against smart contract bugs and hacks. The price of NXM increases when the mutual is sufficiently capitalized and decreases when it requires more funds. The price changes in accordance with the mutual capital, compared to the amount of capital the mutual needs to fulfill its existing liability across claims. The Nexus Mutual price is determined by a special mathematical curve known as the token binding curve. The token represents governance rights and is used to buy insurance cover, vote on governance decisions, and participate in risk and claims assessment. NXM can only be purchased on the Nexus Mutual platform and transferred between Nexus Mutual members. The Nexus Mutual token is the governance token for the Nexus Mutual Protocol. Moreover, it aims to disrupt the insurance industry by incentivizing its members to participate in Governance, Claims Assessment, and Risk Assessment. Nexus Mutual is an alternative to heavily centralized insurance companies driven by premiums, profit margins, and reinvestment. Membership allows you to purchase and hold Nexus Mutual’s native token, NXM. To become a Nexus Mutual member, you need to pay a one-off membership fee of 0.0020 ETH (~ $5.45) and verify your identity through a KYC (Know Your Customer) process. The Nexus Mutual community must assess and accept coverage proposals and fund the pools that ensure coverage. ![]() The Nexus Mutual DAO holds members' funds in a risk-sharing pool and uses these funds to pay out claims. The Nexus Mutual platform is structured as a decentralized autonomous organization (DAO) owned by its members. ![]() The platform acts as a mutual and is managed by its community members, who pull their funds together to create a risk-sharing pool and protect against vulnerabilities in the crypto space. Nexus Mutual is a decentralized insurance protocol built on the Ethereum blockchain to share risks in a distributed manner without the need for centralized intermediaries. Read on to learn everything you need to know about the Nexus Mutual platform and the NXM token. NXM is Nexus Mutual’s native token that can be used to purchase insurance coverage and participate in Nexus Mutual’s governance process.Ĭheck the Nexus Mutual current price, market cap, total supply, circulating supply, trading volume, historical statistics, etc., along with in-depth information on several of the biggest and fastest-growing cryptocurrencies on CoinStats, one of the best platforms in the crypto market.ĬoinStats is a cryptocurrency research and portfolio tracker app that provides valuable information on cryptocurrency news and investment advice to help investors make better decisions. It aims to become an alternative to traditional insurance companies by providing insurance products to protect users against smart contract vulnerabilities. Nexus Mutual is an Ethereum-based decentralized insurance protocol that utilizes a co-insurance model.
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