wNXM and Nexus Wrapper: Community Run Programme
The Nexus Wrapper was created by Nexus Mutants who wanted the option to wrap NXM into a token that could be traded on decentralised exchanges and centralised exchanges.
Both the Nexus Wrapper and the wNXM token are community managed. The mutual provides links to provide information regarding the Nexus Wrapper and wNXM but the mutual does not manage the Wrapper or the wNXM token.
Only Nexus Mutual members can purchase, hold and use NXM.
When the capitalisation ratio (MCR% = ETH in Pool / MCR) is <=100%, NXM to ETH redemptions are prohibited. This ensures we have adequate capital to pay claims.
The Nexus Wrapper allows members to wrap their NXM so it may be sold outside of the mutual (i.e. not through the bonding curve).
wNXM is a 1-to-1 backed token that can only be generated by wrapping genuine NXM.
NXM can only be traded among members, wNXM is fully tradeable but can't be used at all within the Nexus Mutual platform.
NXM can only be purchased via our app (app.nexusmutual.io) as it isn't listed on any exchanges. NXM can only be held and traded by members of the mutual. Nexus Mutual uses a continuous token model, also referred to as a bonding curve. This means tokens can be purchased at any time but at a variable price. This contrasts to more common ICO-type approaches where there is a fixed purchase period with set price change points, followed by a speculation-driven market on exchanges.
The token price varies based on two primary parameters:
- 1.the funding level of the mutual; and
- 2.the amount of capital required to support the covers written.
The main driver of the relative short-term price is the funding level of the mutual, reflecting the immediate financial position and encouraging re-capitalisation when funding levels are low. In the long term, the required capital to support the covers will rise to reflect the adoption of the platform.
When wNXM is sold on decentralised exchanges and centralised exchanges, the price is subject to market forces.
While wNXM is backed 1-to-1 with genuine NXM, the two tokens are shaped by different factors. This can result in a price disparity under certain conditions.
Because the Nexus Wrapper application is community managed and run, our members can submit grants if they believe the application could be improved.
Old Nexus Wrapper: https://je45e4c2q4x52s66qenkajqk42lfkvli6ulyq6ikvtfx5ymcja.arweave.net/STnScFqHL91L3oEa_oCYK5pZVVWj1F4h5CqzLfuGCSI/#/ wNXM Etherscan Contract: https://etherscan.io/address/0x0d438f3b5175bebc262bf23753c1e53d03432bde wNXM CoinGecko Listing: https://www.coingecko.com/en/coins/wrapped-nxm