Space Summary
The Twitter Space Nexus Mutual Community Call hosted by NexusMutual. The Nexus Mutual Community Call delves deep into the realm of decentralized finance (DeFi) insurance, emphasizing community involvement, transparency, and continuous innovation. Nexus Mutual stands out for its commitment to reshaping traditional insurance models through blockchain technology, smart contract coverages, and a strong focus on user protection. Community governance, scalability, and education are pivotal aspects discussed, highlighting the platform's dedication to building a sustainable and inclusive DeFi insurance ecosystem. With a future-focused approach and emphasis on collaboration, Nexus Mutual remains a leading player in revolutionizing the DeFi insurance landscape.
For more spaces, visit the DeFi page.
Space Statistics
For more stats visit the full Live report
Questions
Q: How does Nexus Mutual differ from traditional insurance?
A: Nexus Mutual offers decentralized, blockchain-based insurance without intermediaries.
Q: What role does community governance play in Nexus Mutual?
A: Community members actively participate in decisions, voting, and shaping the platform's direction.
Q: How does Nexus Mutual ensure transparency and trust?
A: Transparent operations, audits, and open communication build trust among members.
Q: What innovations is Nexus Mutual focusing on for DeFi insurance?
A: Smart contract coverages, automated claims, and new risk management tools are areas of innovation.
Q: Why is scalability crucial for DeFi insurance solutions?
A: Scalability ensures broader access, efficiency, and sustainability in providing insurance services.
Q: How does Nexus Mutual address smart contract vulnerabilities?
A: Nexus Mutual offers protection against bugs and vulnerabilities in smart contracts through its services.
Q: What is the significance of multi-chain integrations for Nexus Mutual?
A: Integrating with multiple blockchains allows Nexus Mutual to expand its coverage and reach more users.
Q: How does community engagement contribute to Nexus Mutual's success?
A: Active engagement and feedback from the community drive improvements and service enhancements.
Q: What educational initiatives does Nexus Mutual undertake?
A: Nexus Mutual educates users about DeFi insurance, risks, and the importance of protecting assets in the decentralized space.
Q: How does Nexus Mutual foster collaboration with its members?
A: By involving members in decision-making and incorporating feedback, Nexus Mutual ensures a collaborative environment for continuous growth.
Highlights
Time: 00:15:28
Decentralized Insurance Revolution Exploring how Nexus Mutual disrupts traditional insurance through its decentralized model.
Time: 00:35:12
Empowering Community Governance Discussing the active role of community members in shaping Nexus Mutual's policies and direction.
Time: 00:45:59
Innovative DeFi Solutions Unveiling new products like smart contract coverages and automated claim processes at Nexus Mutual.
Time: 01:05:37
Scalability for DeFi Insurance Delving into the importance of scalability in offering efficient and sustainable DeFi insurance services.
Time: 01:25:11
Enhancing User Protections Examining Nexus Mutual's commitment to safeguarding users against smart contract risks and vulnerabilities.
Time: 01:45:48
Multi-chain Integration Strategy Outlining how Nexus Mutual plans to expand its reach by integrating with multiple blockchains.
Time: 02:00:15
Educational Outreach Initiatives Highlighting Nexus Mutual's educational programs to increase awareness about DeFi insurance and risk management.
Time: 02:15:29
Community Collaboration and Feedback Detailing the importance of member feedback and cooperation in driving Nexus Mutual's growth and success.
Key Takeaways
- Nexus Mutual's focus on decentralized insurance disrupts traditional insurance models.
- Community governance plays a central role in decision-making within Nexus Mutual.
- Transparency and trust are key values driving Nexus Mutual's operations.
- The evolution of DeFi insurance and risk management strategies is a core discussion point.
- Innovations like smart contract coverages and claim assessments are enhancing Nexus Mutual's services.
- Collaboration and feedback loops with members drive continuous improvement within Nexus Mutual.
- The importance of scalability and sustainability in DeFi insurance solutions is highlighted.
- Nexus Mutual's commitment to protecting users against smart contract vulnerabilities is evident.
- Multi-chain integrations and interoperability are considered for broader DeFi insurance access.
- Educational initiatives and community participation foster understanding and growth within Nexus Mutual.
Behind the Mic
Introduction and Call to Order
Hey. Hi. Hey. Let's wait for two more minutes. I just sent out the final reminders on our socials. It.
Welcome and Agenda Overview
Hey Phil, welcome. We're gonna get started in the next minute. Alright, I think we're ready to go. Hey everyone, welcome to this week's Nexus mutual community call. It's great to have you join us as we catch up on everything happening in the Nexus mutual ecosystem. Here is a quick look at what's on the agenda today. Brave new Defi, who is joining us from the Nexus mutual main account, is going to walk us through the latest in Defi, including the current yield and risk landscape. We will also cover governance updates.
Discussion Topics for the Call
There is a lot of talk on the forum about new functionality and changes to the capital pulse asset structure, so we'll dive into that too. To wrap things up, we've got some sneak peeks from our upcoming Q two growth report and we'll open the floor as always, for questions and comments. Also, stick around to find out how to grab your po app. Alright, let's jump into defi brave what's new in the space?
Market Overview by Brave New Defi
Good morning everybody. It is brave new Defi on the Nexus mutual accounts. I'll go through an overview of the current market and the yo environment in DeFi before we jump into some other updates today. Since our last call, ETH is down about 8%, though ETH has seen an increase of 3.64% in the last week. There's really just one major well, there's a couple catalysts for kind of the drop at the end of September. You know, the conflict in the Middle east has kind of led to a scare in the markets that things might ramp up and it might pull in other countries across the world into this larger conflict.
Impact of World Events on Markets
It doesn't look like there's any signs of tensions easing and there's been new waves of conflict in the region since we talked last. So I anticipate that the market is going to correct and kind of react to this as developers over time. On the other hand, the September jobs report of the United States has helped drive markets rebound from that correction. But that market momentum isn't likely to have the same impact on crypto markets. The stellar jobs report means the Fed likely won't be as aggressive with rate cuts in the near term, with many market analysts predicting a 25 basis point rate cut instead of the 50 basis points rate cut that we saw previously.
Future Outlook and Predictions
The United States election is also drawing closer, and this too will have an impact on crypto markets. I'm sure if you look on crypto Twitter there's a lot of people talking about a bullish scenario if Trump is elected in the US, but we'll have to wait and see where the market takes us in the next month. Despite this downturn, though, traders have grown more bullish than last week, with the median ETH funding rate increasing by 81% from 5.03% to 9.10%. The highest funding rate is currently on DYDX, where traders are paying 30.57% to go long on ETH.
Market Trends and Holding Patterns
And on the other end of the spectrum, traders on OPX are being paid 1.76% to go along on ETH. Based on what I've seen, we're still in a holding pattern between that 2200 and $2800 range. The market is kind of waiting for a major catalyst to move another direction. I know I've said that before, but it still holds true. We're kind of in this crap market going in between those two ranges. The correction has been reflected in the on chain base rate as well, which dropped by 30% from 6.99%, which is the rate when we last spoke, down to 4.86%. This week.
Current Yield Trends
Yields across lending markets were higher, but they've settled down just above short term US treasury rates. If on chain interest rates were to drop below short term US Treasuries, that would show a lack of incentive to drive more capital on chain. In previous weeks, warfare vaults have been contributing a sizable amount of yield, but the rates in those vaults have trended closer to or below nine or 10%. From a high level vantage point, the emerging lending markets like Morpho fluid, Moonwell exactly, and some others are all seeing a median interest rate around seven to 8%, while mature markets like AAVE and compound are seeing a median interest rate around four to 5% as you get more size as TVL grows in these markets, that interest rate usually comes down to that 4% to 5% range.
Recent Changes in Lending Rates
So while lending rates have hovered in this range, sky or formerly Makerdao, since they've done the rebrand, they're now sky. They've reduced the DAI savings rate to 5.5% and increased the sky savings rates to 6.5%. So that on chain benchmark is now close to 2% higher than the on chain base rate. That should help move the base rate higher in the coming weeks as more users adopt USDs, Sky's new stablecoin and deposit that into the sky savings rate module. There's still a lot of great yield opportunities out there and DeFi protocols. I know I say this every week.
Exploring Yield Opportunities
But there are always high yield opportunities on chain. You just have to kind of know where to look and check the lending markets for that base rate and then look at some of the yield aggregators out there. I've been keeping an eye on Dex yields for correlated pairs across Uniswap V three aerodrome, velodrome, Kamlot, Ramses, gamma swap pancakes and some others. I've also found that the 30 day average yields which you can find on vaults, FYI or on Defi llama, I found that those 30 day average yields are in the 20% to 30% range on both ETH and stablecoin pairs that are on some of these deXs.
Best Yield Platforms
So right now, Uniswap, Pancakeswap and Velodrome have had the best yields over the last week, though I still keep an eye on aerodrome, Ramses and Camelot as well. You can look for some of the notable yields that I highlight in my next issue of the state of Defi yields newsletter that's going to come out tomorrow. And again, I always highlight some notable yield opportunities which usually include some tax yields. Lending markets still have good yields I found Contango is a really reliable protocol to look for leveraged yields across lending markets, especially with ETH or LST assets.
Using Contango for Yield Farming
So Contango allows you to use leverage to farm across lending markets and other protocols. It does use leverage, so we should always exercise caution when taking out leverage and farming yield. But if you want to LP without worrying about harvesting rewards, then you can always use beefy, which automates and harvests those rewards for you and puts them back into the LP. The 30 day average yields in some of those beefy vaults are between 15% to 45%, so still very good yields on beefy.
Learning About Arcadia
I've also been learning more about Arcadia, which is non chain credit market on base, where you can farm leverage yields, create your own strategies and you can also lend crypto assets to earn yield. Arcadia's TVL recently rose above 5 million, but Arcadia has been around for more than a year. They provide curated leverage strategies that you can choose from, which use underlying the underlying aerodrome and Uniswap b three pools as the yield source, and depending on the amount of leverage that you select, you can earn anywhere between 20% to 300% APY.
Considerations for Leveraging
I do want to note here that you know you have to pay interest on the assets you're borrowing when you open leverage, and you take on the risk of impermanent loss when you're using a strategy like some of the ones that are provided on Arcadia. So always weigh the risk with reward and always be sure to look and make sure that it's something that you want to do and you don't want to suffer in permanent loss and pay those fees and other rewards get out of whack over time. But Arcadia is very cool.
Flexibility in Yield Strategies
It kind of lets you design your own custom strategies, so there's a lot of flexibility there and it's been pretty neat to learn about. But if you don't want to take on leverage, if you don't want to use some of those more advanced strategies, you can always lend your assets and earn yield that way. You know, very similar to what you can do on Xtrafy or gearbox. Arcania still has that Arcadia lenders can earn pretty decent yields, so USD lenders are currently earning 9% and CBBTC lenders are earning 8%. On Arcadia.
Earning Additional Points
You also earn Arcadia points. Not really sure what those points translate to, but you know, it's just some extra gravy on top, I guess I'll have more in this week's issue of the state of Defi yields. So if you want to read more about on chain lending markets, the on chain base rate, some of these notable yield opportunities, and my latest risk report, you can check out that newsletter on stubstack. I'll put out some announcements when I post that this week as well.
State of Nexus Mutual
I want to talk a little bit about the state of the mutual too.
Launching the Defi Pass Cover Product
So as I've shared in past calls, we're working with Opencover to launch the Defi Pass cover product. Opencover has been running a beta launch of the first listing, the base Defi Pass, and since that beta has been live, the mutual has sold 353,000 of base defi Pass cover. So in just a short amount of time, with a limited number of users in the beta, we sold a pretty large amount of base defi pass cover for the testing phase. Feedback so far has been overwhelmingly positive. We have received some feedback on some minor things, so we're working with Opencover to tweak the UI, update some of the information to make things clear, and get ready for a full public launch of the base D five Paas in coming weeks. We're also going to be working to scale some of that capacity for the base defi pass to support that launch.
How to Purchase Base Defi Pass
So if you're interested in buying base defi pass cover, you can head over to the Opencover UI. Opencover is going to be the sole distributor of the base defi pass since users are able to buy the pass directly on the base network through Opencover. And as a reminder, if you haven't heard me talk about the base defi pass before, it provides protection across aerodrome, BP compound V three, xtrify, Moonwell Morpho overnight and Uniswap V three on base, as well as any underlying protocols used by any of these protocols. It's all defined in the annex in the protocols and sub protocols section. The pass is priced at 3.99% and you'll be able to move funds between these protocols without losing your coverage. You just have to make sure that the covered amount you keep is, you know, higher or equal to the aggregate total that you have deposits across all these protocols.
Flexibility and Protection for Crypto Assets
So it's maximum flexibility means comprehensive protection so you don't have to worry about buying multiple covers to protect your crypto assets deposited in these leading protocols on base. So on a higher level view outside of the base Defi pass, the mutual has been growing cover sales we've been seeing a lot of interest in the bundled protocol cover products. Some of our very popular protocol cover products like Ave V three protocol cover, and now with some of these newer products that we've been listing, you know, we're seeing a lot more cover being sold. But in the last week we've had a really major milestone. We've hit the 5 billion in total cover underwritten since our launch in 2019, and now it's getting to that $10 billion mark, which hopefully comes here in the next few years.
Cover Sales and Analysis Dashboards
But if you want to learn more about the mutual's cover sales, you can check out the covers Dune dashboard we're also close to finalizing a couple new stake and Dune dashboards. You can find those on the Nexus mutual Dune analytics page as well, but you can learn more about the individual staking pool performance and aggregate across all the staking pools. You can look at NXM rewards that are being earned, current exposure for each individual pool, and more. I've already used some of the new dune dashboards to put together this week's community staking pool update, which I'll go over now so you can find these biweekly updates about the community staking pool on the Nexus mutual Governance forum. I covered the pool's current exposure and the rewards of discern from COVID sales.
Community Stakeholder Pool Update
I've been doing this here for the last three updates, which has been the last six weeks, and I'll continue to post updates in there. As of this week, the community stakeholder pool is underwriting about 6 million in active cover across the listings that are outlined in the forum post, but the top five listings by exposure are as follows. Eigenlayer ether five bundle protocol cover the pool is underwriting about 1.4 million Ave V three protocol cover the pool is underwriting 1.37 million, dialectic Moon phase fund portfolio cover the pool is underwriting 1.18 million and the dialectic chronograph fund portfolio cover the pool is underwriting again, another 1.18 million and Arcadia protocol cover the pool is underwriting about 240,000 in that listing as well.
Earnings and Growth from Community Staking
So since the staking community staking pool launched, it's earned a total of 821 NXM between staking rewards management fees. This of course goes back to the Dow treasury. So we're earning rewards there and kind of growing the treasury over time and opening up capacity for some of these popular cover products. Looking by cover Pool 20 Three's current active cover has earned the pool 464 NXM in rewards, with 112 NXM earned so far, and another 352 NXM in pending rewards, which will be streamed over the remaining days of the individual listings. For the active cover periods, the pool is earning 12.82% APY, which is a slight increase since the last update we shared, which I believe was 12.66% APY.
Updates on Community Safety Pool and Other Pools
So it's a little bit higher here over the past two weeks, and if you want to see more information about the community safety pool, you can check out the Nexus Mutual Governance forum. I also post updates about my own pool 22. I'm hoping that more pool managers can kind of post updates and give people a better view on their exposure. But again, some of those dune dashboards will allow you to check any of the staking pools that are active on Nexus mutual. I guess some of these updates have been automated, but I'll continue posting these updates with a little bit of color on the forum. Now I want to jump into a little bit more information on the governance forum.
Governance News and Proposals
So in other governance news, the rfcs that I spoke about on the last call have now all transitioned to Nexus mutual protocol improvement proposals. So these nmpips are open for review and will go up for an on chain vote on Thursday the 17 October. I'll provide a brief overview of each proposal before handing things over to Hugh for his foundation update. The first one is the NMPIP to approve the addition of delegated claims for select product types, so the foundation endow teams have been working to grow cover sales and onboard new syndicates. We're currently working to onboard a new syndicate they posted on the forum that they're called native and I can have a that can meaningfully contribute to the growth of COVID sales.
New Syndicate Onboarding and Delegated Claims Functionality
So native will require additional functionality to offer new product types through their staking pool, specifically the ability to delegate to an Ethereum address as a designated assessor. This function would enable certain product types to have a designated third party claim assessor as defined in the COVID wording for that product type. So if someone were to buy cover for a product type with delegated claims enabled, then claims for that product type would only be assessed by that designated claim assessor. Native has actually replied on the RFC and outlined why they need this. They have their own experts for the products that they're planning to offer, and those experts can go through and look at information that may not be on chain and assess those claims.
Proposal for Approval of Delegated Claims Functionality
So they're going to have some of their own third party experts that are going to be assessing claims and this is crucial for some of their clients that they're working with. On behalf of the foundation and Dow team, I propose that members approve the addition of delegated claims functionality for select product types. Doing so will enable the mutual to onboard new types of syndicates like native that have established distribution in on chain and off chain markets. If this NMPIP were to be approved, then the mutual could work with certain stake and pool managers to create new cover products that would have this requirement to have a designated claim assessor rather than opening the claim vote to all members, as we currently do for all of our other product types at the moment.
Expanding Into New Lines of Business
So this would allow specialized assessors to review a claim and this would allow us to expand into new lines of businesses. So definitely something to keep an eye on. If you want some more detail, I would recommend checking out the NMPIP on the forum. But the RFC has received broad support from Hugh Dopey and then Dan from native again. Native is that new staking pool that's launched on Nexus mutual. Again, really encourage everyone to read this proposal. This NMPIP is going to be open for review from the 4 October until the 16 October and after that review period, that NMPIP is going to move to an on chain vote on Thursday the 17 October.
Offboarding Dai as a Capital Pool Asset
Any questions on this NMPIP before I move on to the next summary? Okay, if not, let's talk about off boarding Dai as a capital pool asset. So as I've covered before, Makerdao is rebranded to sky and they've launched a new stable coin. USDs. People can convert Dai to USDs. As of today, USDS is almost to 1 billion in TvL and DAi is down to about 3.34 billion in TvL. So Dai has been around 5 billion. So between those two, essentially kind of staying around that 5 billion number. But more people are converting their dai over to USDs. You can still convert USDs back to Dai, but sky is going to be, you know, essentially prioritizing USDs growth over dai growth.
Shift in Market Dynamics for Dai and USDS
You can see that from the shift they've made where they've increased sky savings rate and decreased the DAi savings rate. So USDS is going to be the primary token that's going to receive support and a big growth push from sky over time. So that given sky is moving toward more real world asset backing and USDS has that blacklist function, we on the product and risk team anticipate that DAi denominated cover demand is going to further shrink as dai kind of fades into obscurity over time. So I'm proposing that next mutual members vote to off or Dai as a capital pull asset and grant the advisory board the power to complete the four stages off boarding.
Stages of Offboarding Dai
Which would be the first one would be disabling dies and nominated cover buys at user interface level and waiting until the last dai cover expires and the greatest period for that cover to end. And then all of the dai in the capital pool would be swapped for USDC and then the last one would be off boarding Dai as an asset in the capital pool. So since USDC was onboarded to the capital pool, we've seen a lot more growth in the USDC denominated covers. You know, die cover has dropped in relative terms. You can see on the covers dashboard where it is there's only really been one large cover buyer that's been denominating a die.
Projected Future of Dai Exposure
You know, some of their covers have expired, everything. So I think that we'll see that die exposure die down over time.
Censorship Resistance and Future Onboarding of USDC
And of course, the core reason that we had die in the capital pool was because it was censorship resistant. But as that's kind of trending the other way with USDs having that blacklist function, we don't see a reason to keep it in the capital pool. So in the future we may look to onboard USDS once it's achieved more growth and if demand for USDS not only to cover is evident, but as of now, we think that USDC is sufficient for a stablecoin asset for cover denominations. You can check out more on the forum, but this NMPIP is going to be open for review from the 7 October until the 16 October. And then of course this like the other two, NMPIPs is going to go for an on-chain vote starting on Thursday the 17 October. Any questions on this one before I move on to the next one?
Onboarding CBBTC as a Capital Pool Asset
Okay, and then the last NMPA I want to summarize was onboarding CBBTC as a capital pool asset. So Coinbase launched CBBTC on the 12 September, so it's been live for just about a month now. Onboarding CBTC as a capital pool asset would present the mutual with a competitive advantage as the foundation and Dow teams look to expand into new lines of business and appeal to a broader audience of crypto native users. Just in the last month, CBE BTC has grown exponentially and I imagine that's going to be the case over time as well. On behalf of the product and risk team, I'm proposing that Dex mutual members vote to onboard CBPPC as a capital pool asset and grant the advisory board the power to complete the three stages of onboarding.
Details on CBBTC Onboarding Proposal
First one would be onboarding CBPTC as an asset, the capital pool, and then swapping ETH for $1 million of CBBTC and then enabling CBBTC to nominate the COVID buys at the user interface level. I talk about why in the forum post why CBTC? I've outlined things in pretty great detail on the forum, but the quick summary since CBBTC launched, it's reached a market cap of 357 million as of this morning, with 5731 BTC backing CBBTC. So this put CBBTC in the top ten of bridge TVL rankings on Defi llama in just one month time. I imagine that they're going to eat more market share, but they currently have, I think it's 6.31% of the BTC derivative market share already. They're poised for growth at the institutional layer and across DeFi.
Market Potential and Growth of CBBTC
Major lending protocols have already integrated CVTC into their markets. Given that Coinbase is the primary custodian for both the BTC and ETF's, I think there's a pretty high likelihood that CD BTC's market share will grow substantially by the end of this year. Onboarding CBBTC is going to provide us with a competitive advantage to get into new lines of business underwriting companies that mine BTC, expanding into things like BTC restaking and then catering to crypto native users who have WBTC or other BTC derivatives on chain that are looking to denominate their covers in BTC asset. So I outlined things in a bit more detail on the forum. I recommend you check that out. I go over the business cases and the risks associated with onboarding CBBTC to the capital pool.
Review and Voting Period for Onboarding Proposal
So you can see the NMPIP on the forum. This proposal is going to be open for review from the 8 October today until the 16 October. After this review period, the NMPIP is going to move to an on chain vote on Thursday the 17 October. Any questions on this proposal before I hand things over to Hugh? Okay. If not, I'm sure everyone is tired of hearing me talk, so I will hand things over to Hugh to provide us with the foundation updates for the week. Hugh. Cool, thanks Brav. Yeah, a couple of things.
Governance Proposals and Business Opportunities
Just want to firstly comment on the governance proposals. Really excited with both the CB BTC one and the delegated claims one. On the CBBTC one. I guess from a business perspective I see kind of two main things here. One is the BTC staking, restaking projects and I guess narrative. And there seems to be a lot of stuff being built up around that. And if there's they'll have slashing and also smart contract risk and script risk on the BTC chain. So I think there's a lot of latent capital in BTC world that's like kind of could look for yield if the yields are attractive enough and the risk return profile is right. And so I think being prepared for that potential narrative shift could be quite promising for us.
Market Risks and Company Needs
So it's not quite there yet and think projects are only just starting, but being prepared and having the capability to write BTC denominator covers, I think it's going to be quite powerful there. I think also worth noting that there are a lot of companies within the crypto space that obviously have a lot of exposure that's very closely linked to BTC. For example, bitcoin miners, et cetera, run property risks like business interruption type risk, et cetera. They actually want BTC denominated covers for the chunk of that coverage and they can't really source it from traditional markets because traditional markets have to price in USD US dollar terms. So I think that's a potential extra market that we could go after as well. So yeah, pretty excited about that one.
Delegated Claims and Partnership Updates
The second one being the delegated claims. I encourage you all to read native's post. That kind of gives you a very good outline of why this is needed. It gives potential cover buyers a lot more confidence that they can be comfortable that claims will be paid, et cetera, rather than this bit strange, weird crypto thing on the side. It's a lot more familiar to them. And so I think that can open up the potential markets for cover buyers a lot more broadly on native. They're going to do a more detailed or more promotional announcement about our partnership with them over the coming weeks. But I guess just to give you a little bit of a heads up here on this call, they're professional insurance brokers that have been doing crypto asset broking for several years, and they're just kind of forming together under a new banner, and we're partnering with them to kind of expand.
Market Engagement and Future Prospects
And so they're going to be looking to place lots of, I guess, businesses working in the crypto space that have like crypto exposure. And they're looking to replace more traditional type policies with Nexus, but also with traditional insurance companies. But we're looking to kind of partner with insurance companies and native to kind of say a business wants 10 million of coverage, maybe they can only source 5 million from traditional markets and then they can add on an additional 5 million from Nexus. And that type of thing is we think there's quite a large market for that. So they're just ramping up at the moment. They've just got their regulatory licenses and they're all kind of onboarding a new team and stuff.
Current Projects and Future Announcements
So they're going to be doing some really good things next year in particular, but they're ramping up at the moment and hopefully they can get their first cover sales coming through soon. So you would have seen they've, you can see on chain that they've started pool 28, I think it's 28 from memory, but they haven't quite started delegating and actually writing the business through there. But that's what native are, that's what they're about. You should read a bit more on the forums and look out for some further announcements on that because, yeah, it's pretty exciting for the mutual and hopefully they're going to be a really powerful syndicate in the future for us.
General Foundation Updates
So I guess more broadly on that in terms of foundation update, there is a lot of work in general supporting all the bunches of different syndicates out there. So braver is mentioning open cover and the Defi pass. We're working heavily with them on the marketing side as well as the product development side and making sure that the products are working in the right ways and stuff like that. So they're, open cover is starting to really push this stuff out. And you probably notice like they sell a lot of the covers on Nexus. They're generally a bit smaller on average, but in terms of number of, they're definitely making a meaningful difference. I think a third to even a half of the COVID buys come from them.
Product Development and Opportunities
So, you know, that's pretty powerful. So we're with, we're also developing products on like the bug bearing coverage side at the moment for a few potential syndicates and partners there. That seems to be a definite area for where projects can essentially get some coverage for if they have to pay out a large bug bounty on a critical bug, then they can get some coverage there. So, you know, higher price coverage and all the rest of it. But still there's a kind of a meaningful premium that we could get from the mutual, could get in that respect. So pretty exciting.
Overview of Syndicates and Development
A bunch of different syndicates and products that we're supporting. And I think that's a kind of a large chunk of the foundation's work over the coming weeks and I think we'll even more in the coming months. So. Yeah, and there's a few that I can't quite mention yet that are a bit further along in the development process. But there's a lot of work on that side of things. I guess then I'll just flip to the engineering side of things. So that's kind of, I guess the two main things we're working on, distribution and growth, and then obviously the protocol engineering stuff.
Protocol Engineering Efforts
So on the protocol engineering side in terms of product features, the kind of this we're working through at the moment is we've got, we're just going to ship tomorrow, most likely a small technical upgrade to some more flexibility on the swapping function. I guess that's a relatively small one, but just to let you know it's happening and you can see, you can probably see the governance proposal in the process there. It's just an AB, only one because it's a small technical change. Then there's that one. Then we've got work on cover edits continuing, then we've got work on delegated claims continuing, and then we have also got some work on limit orders.
Limit Orders and User Experience Enhancements
So, you know, you should be able to, for example, sign a message and that you want like, I don't know, 5 million coverage on uniswap. And if that becomes available, a worker or bot can execute that. It also allows some really cool, interesting ux type enhancements where like you can potentially do like monthly cover purchases and things like that. So there's quite a few interesting pieces to do that. So limit orders are quite exciting. So there's those few pieces on there, development robots. So very kind of feature oriented, driven by product feedback from native and other syndicates, as well as kind of end users as well.
User Interface Enhancements
And then we've got the UI enhancement service. The staking UI in particular is the next one that being worked through at the moment. The new screens and stuff that went through, they look pretty cool. Be good to get everything onto the new nice UI that the bycover stuff's on at the moment. So those are probably the big things. On the engineering side, there's obviously also some backend stuff and things that we're working on, not just making sure things are smooth and we can deploy fast and all the rest of it. So those are kind of the big things that we're working on.
Team Structure and Focus Areas
And I guess probably just to mention in terms of team size, with the whole Nexus team, whether that's across the foundation or directly from the Dow, it's about 15 or 16 people and we've got about five or six engineering resources there. That's to kind of give you the kind of, I guess, overview of the team. I think that's the main stuff. I'm probably missing a few things, but those are the main things. I get two main focuses, growth and distribution and supporting syndicates. And definitely the engineering from a product feature point of view, especially to support the growth in those syndicates.
Recent Growth Statistics
So those are the main two things we're focusing on at the moment. Yeah, any questions, just shout or you can feel free to ping me later in discord or whatever. Thanks Hugh, and thanks brave. Let's look at the last week in numbers so that we better understand how things are looking on a weekly basis for the growth end of things. In the past week, Nexus mutual members sold $37.3 million worth of COVID and members earned $294.1 thousand in fees with a weighted average expiry of 22 days.
Cover Statistics and Community Engagement
Total active cover stood at the beginning of the week at $75.8 million. You can explore all of this data on the DAO maintained covers data dashboard on dune@dune.com. nexus Mutual moving on to an important highlight from last week in numbers. Dialectic, the leading defi fund, renewed their fund portfolio cover with us. They have been one of the first major adapters of this new product and this product has been designed for serious investors.
Dialectic as a Strategic Investor
In mind, if you'd like a bit more context about dialectic, they're a DeFi and infrastructure focused investment firm founded by crypto veterans. They invest in both startups and established companies, and they also run proprietary yield generating strategies. By renewing their fund portfolio cover, dialectic is ensuring protection for their assets against smart contract hacks and exploit oracle manipulation or failures, major liquidation issues, and governance attacks.
Q2 Report Highlights
To learn more about the last week in numbers and our partnership, you can check out the weekly analysis category on the governance forum to learn more about the partnership with dialectic and about the found portfolio cover. You may find useful resources at nexysmutual IO blog. Moving on, I'd like to give a little highlights give some highlights from the Q two report every quarter we dive into the most important highlights from the past three months, and the third quarter of this year has been nothing short of remarkable.
Sales Growth and New Cover Products
We're happy to announce that the Q two insights report is coming soon, and we have a few sneak peeks to get you excited in Q three. Nexus Mutual sold over $198 million in cover. That's 18%, one 8% increase compared to the previous quarter. But here's a real jaw dropper, it's more than 3.4 times what we sold in Q two of last year. Talk about momentum, huh? But that's not all. This quarter saw the launch of three new cover products, fund portfolio cover, Defi pass and bug bounty cover.
Community Engagement and Opportunities
You'll find all the details in the report, but here's one standout our close partner, open cover specializing in layer two distribution, boosted their sales by an impressive 55% in the last three months. The team's strong support to syndicates are paying off, and we're not stopping there. Nexus Mutual is all in on growth this quarter and the next, with more ecosystem partners coming on board, and it's a perfect time to explore how you can join this risk sharing ecosystem.
Invitation for Participation
The report will also dive into community opportunities, from the Nexus mutual grants and accelerator program to the governance reading group. So whether you're looking to get involved or just curious about how you can contribute, there's plenty to dig into. Stay tuned and we will let you know once the report comes out next week. All right, now the floor is yours. If you've got any questions or thoughts, feel free to jump in.
Closing Remarks and Acknowledgements
You can either raise your hand or drop your questions in the chat. If there are no questions at the moment, please find us in the Nexus mutual discord. You can either ask the public on general or just ask a ticket and reach out to the DaO teams as a little thank you for being here. We've got a PO app for you. Just shoot me a DM. I am Sam from the DaO community team on Discord. Or you can just open a ticket and I'll hook you up with emit link.
Appreciation for Participation
Thanks so much for being a part of today's call and for continuing to support Nexus mutual. Take care and stay safe in Defi, and we'll see you at the next call in two weeks. Have an amazing week ahead. Bye. Thanks, everyone. See you later.
Goodbyes and Final Thoughts
Bye, everybody. Have a good weekend.
