NXM Token

Token Model

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. 1.
    the funding level of the mutual; and
  2. 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.
For an in-depth review of NXM Tokenomics, you can review the Tokenomics Expert Course on the Community Notion board.

Token Price Formula

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TP = A + (MCR / C) × MCR%^4
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Where:
  • TP = Token Price in Ether
  • A and C are constant values which were calibrated at launch:
    • a = 0.01028
    • c = 5,800,000
  • MCR = the value of the Minimum Capital Requirement in Ether which grows as the number of covers grows.
  • MCR% = ratio of the Capital Pool to the Minimum Capital Requirement.
The MCR is determined by the Capital Model and is calibrated to achieve a 99.5% probability of solvency over a 1 year period.
For a general purpose understanding of the token model please visit the Token Model page.

Redemption and Purchase Restrictions

Several restrictions apply to the redemption and purchase of NXM tokens. Generally, these restrictions are in place to ensure the mutual always has sufficient funds to confidently pay members' claims.
  • Redemptions are restricted if MCR% is less than 100%.
  • Purchases are restricted if MCR% is greater than 400%.
  • Where are transaction would result in the MCR% being outside these limits the volume of the transaction is limited.

2. Transaction Limits Caps

Redemptions and purchases are limited per transaction to 5% of the MCR.

3. Capital Pool Liquidity

The Capital Pool must also have enough liquidity in ETH to execute on the redemption. While this is not generally expected to be an issue, this may occur temporarily if a large portion of the funds have been invested in non-ETH assets.

4. Redemption Price

To discourage speculative buy/sell behaviour the redemption price will be set at 2.5% lower than the purchase price derived from the Token Model.

NXM Price

The token price can be fetched onchain by calling:
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getTokenPrice(0xEeeeeEeeeEeEeeEeEeEeeEEEeeeeEeeeeeeeEEeE)
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in the following contract:
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0xcafea7934490EF8B9d2572EaeFeb9d48162ea5D8
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Result returned is the NXM price in ETH terms (wei). Then multiply by 10^18 to get NXM price in ETH.

NXM Volume

Use this link for The Graph with the following queries:
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mintEvents(orderBy: timestamp, orderDirection: desc, first: 1000, where: { timestamp_gte: $range_timestamp }){
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transaction
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amount
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}
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burnEvents(orderBy: timestamp, orderDirection: desc, first: 1000, where: { timestamp_gte: $range_timestamp }){
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transaction
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amount
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}
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TVL

Contract that holds the mutuals assets:
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0xcafea7934490EF8B9d2572EaeFeb9d48162ea5D8
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wNXM

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.
For more information, please read the wNXM and Nexus Wrapper: Community Run Program.
Last modified 8mo ago