Nexus Mutual is a decentralized insurance protocol built on the Ethereum blockchain that allows its members to join and share risk for decentralized finance (DeFi). The London-based company was founded in 2017 by CEO Hugh Karp. Nexus Mutual gives its members the ability to buy coverage that protects against different types of risk. It also underwrites risk, assesses claims, and creates risk management businesses.
The Nexus Mutual platform is run entirely by its members, who decide which claims are valid and have their decisions recorded and enforced by smart contracts. This means claim payments are enforced by token-driven economic incentives, eliminating the need to place trust in an insurance company. All members of the mutual have their membership rights backed by legal agreements and represented by cryptocurrency tokens that are used throughout the insurance platform.
Nexus Mutual offers four types of cover products for various kinds of DeFi risk. The first, Protocol Cover, allows users to insure the funds they deposit into a single protocol, such as Bitcoin, Ethereum, or Binance. ETH Staking Cover, Nexus's second product, provides coverage to organizations that run ETH validators and offers protection from slashing risks. Nexus also provides Yield Token Cover, which provides coverage to members who have deposited crypto assets into a yield aggregator or a protocol that features integration with other DeFi protocols. Finally, Nexus Mutual offers Custody Cover, which protects crypto assets that are held in custodial accounts on an exchange and are susceptible to hacks.
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Hugh Karp - EthCC 2018 Paris - Smart Contract Cover
Nexus Mutual (NXM): DeFi Insurance, HUGE Potential!!🔐
September 10, 2020
Nexus Mutual | A decentralised alternative to insurance