About

Nexus Mutual is an insurance alternative for crypto and more, offering comprehensive cover for a range of risks. The company enables members to share risks in a globally accessible risk marketplace, with pooled capital managed by experts. Nexus Mutual's primary business activities include underwriting risk, providing cover products, and managing staking pools for risk assessment and pricing. The company prioritizes security, with code audits from industry-leading auditors and a bug bounty program.

History

Insurance, in all its forms, has become a critical component in our daily life. Nowadays individuals place trust in insurance companies to ensure their safety and protect them from catastrophic events. However, this hasn’t always been the case. Prior to insurance companies, communities would pool resources together in an attempt to diversify their risks. All funds raised were ultimately used to benefit the community in an attempt to protect individual members from unfortunate events.

Nexus Mutual, founded by Hugh Karp, was created with these principles in mind. Unlike traditional insurance companies, the platform acts as a mutual in which members pool their assets together to provide protection against vulnerabilities in the crypto ecosystem. In order to become part of the mutual, users are required to pay a nominal fee of 0.002 ETH and fill out KYC/AML documentation.

NXM is the native token of the protocol and is only held by members of Nexus Mutual. NXM token holders are encouraged to be active contributors to the community. Apart from being responsible for governing the protocol, members are in charge of assessing the risk levels associated with each smart contract. Also, when a claim is submitted, members are asked to vote on whether to pay out the claim or not. Membership actions are a form of ‘mining’ because they result in rewards in the form of newly minted NXM tokens. Therefore, idle members may experience dilution of their tokens.