Cover Products
Yield Token Cover—provides stacked risk across protocols and protects against yield-bearing token de-pegging.
Risks Covered
De-peg—value of the token is determined by the value right before the hack happened.
Protocol Cover—protects against a hack on a specific protocol.
Risks Covered
- Code being used in an unintended way
- Economic design failure
- Severe oracle failure
- Governance Attacks
- Protection for assets on Layer 2 solutions
- Protection for non-Ethereum smart contracts
- Protection for a protocol across multiple chains
Custody Cover—protects against halted withdrawals and haircuts on your funds stored on centralised exchanges.
Risks Covered
- The custodian getting hacked where the user loses more than 10% of their funds; or
- Withdrawals from the custodian are halted for more than 90 days.
Loss events are defined in the cover wording for each cover product. In general, Nexus cover protects against loss of funds (i.e. loss of tokens), not loss of value; Yield Token Cover is the exception to this rule of thumb.
While there are some Yield Token Cover products that protect against de-peg events, Nexus does not offer one Yield Token Cover product that was created solely to protect against a de-peg event for any stablecoin.
For example: if a user held yDAI, yUSDC, or 3CRV (3Pool) and held Yield Token Cover, they would be protected against a de-peg event for any of the underlying stablecoins.
There are no cover products that are designed solely to protect against stablecoin de-peg events at this time but such a product could come in the future.
All protocols and custodial accounts can be covered by the platform provided sufficient staking has been obtained.
The quote may return a prohibitively high price for some platforms; these contracts do not have sufficient value staked against them by Risk Assessors. If you can't get a reasonably priced quote, please join our Discord and ask Risk Assessors to stake!
Cover becomes available through one of two ways:
1) Initially, cover capacity is established by staked NXM. When Risk Assessors stake NXM against a protocol, custodian, or cover product, more cover is made available. Read more about the factors that determine cover ability in the Capacity Limits section.
2) As cover policies expire, cover becomes available. You can check Nexus Tracker for cover set to expire.
Just remember: a cover holder can file a claim for a loss within their defined cover period up to 35 days after expiry, which means cover becomes available on the 36th day after expiry.
Yes, definitely. We actually started development with a product to cover earthquake risks but shifted direction in late 2017.
There are still challenges regarding public blockchains, with scalability, in terms of transaction throughput, and user-friendliness being the key ones that make mainstream products quite difficult at this time. However, there are a large number of talented people working on solutions to these problems, so we are optimistic they will be solved within the next few years.
We have expanded our cover products to include Custody Cover and Yield Token Cover in addition to upgrading our flagship Smart Contract Cover to a more comprehensive Protocol Cover, and we are working toward expanding our future product offerings to better serve our members.
Last modified 1mo ago