Nexus Mutual

UK-based Nexus Mutual is a DAO that offers a decentralized insurance platform using its native token NXM that members can use to purchase insurance coverage. These tokens also offer voting rights on governance matters and when assessing claims that need to be paid out. 

Nexus Mutual offers three types of insurance: 1) Yield Token Cover: Coverage against value drop of yield-bearing tokens 2) Protocol cover: Coverage against financial losses caused by failures in a smart contract protocol, and 3) Custody Cover, which provides coverage against financial losses arising from hacks or halted withdrawals from custodians. As of May 2021, total active coverage in Nexus Mutual’s platform exceeded USD 370 million.

Funding and financials

Nexus Mutual raised USD 2.7 million in February 2021, from a funding round led by Collider Ventures. The new funds were to be used to expand its product offering and cover users of already established cryptocurrency exchanges such as Coinbase and Binance. In December 2022, announced that it expected to take a USD 3 million loss on its investment of USD 19.3 million (representing 1.6% of its total assets) in credit pools on Maple Finance . The company went on to state that it has begun withdrawing all funds from the affected pool.