Members can now purchase cover on centralised custodians and exchanges.
Custody cover will protect users who put funds into an organisation which is responsible for the safekeeping of private keys to cryptocurrency assets on behalf of their users. Users will be covered in the event that either;
the custodian gets hacked and the user loses more than 10% of their funds, or
withdrawals from the custodian are halted for more than 90 days.
🛠 Distributor contract
We need to place cover purchases as close to the primary product purchase/interaction as possible. This means building out distribution networks like Armor.fi and other partnership integrations. There is a lot of work going on behind the scenes here, both on the technical side to make integrations easy, as well as discussions with user facing applications.
If you’re interested in building something here or if you’re from a centralised exchange and are interested in getting your users protected please reach out: [email protected]
🛠 Stacked risk cover
This is targeted for early 2021 and will allow us to more comprehensively cover risks, especially on stacked protocols, but also on tokenised ETH2.0 staking.
Severe oracle failure
Dev liability (dependencies: partial claims)
D & O cover (dependencies: partial claims)
MGAs (dependencies: partial claims and supply/demand pricing)
Real world products eg, earthquake cover
✔ Proof of loss
Starting with cover #2992 all new covers will require proof of loss in the event of any claims being raised. Acceptable proof of loss will be a set of addresses to demonstrate material loss which will need to be submitted with the claim. Claims assessors will then be able to go through the list of addresses to determine if losses occurred because of a known hack; and vote accordingly. There are instructions in the UI for both raising and assessing claims for this new requirement.
Similar to regular insurance companies Nexus Mutual needs to invest its assets to earn yield on the float. We’re currently working on some updates the will allow this to happen. Some things we need to consider:
As the mutual grows larger we should aim to match assets with liabilities more closely. eg if 30% of cover is in DAI, we should probably have close to 30% of assets denominated in USD.
Accumulation of risk is an important consideration. If we cover eg Compound & are at max capacity we probably don’t want to put more assets in Compound to earn yield.
Assets must be ERC-20 with enough liquidity on Uniswap.