#Insurance + #Ethereum. Founder @NexusMutual #defi
London, England
Joined November 2011
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Hugh Karp 🐢 retweeted
Token2049 is one of the most packed weeks of the year for crypto
If you didn't see us around town, here is what the Nexus Mutual team was busy with...
The capacity available in the entire insurance market can never cover the full AUM. Insurance is far from worthless though. First loss policies have meaningful value as they can still cover the majority of the risk as most risk events lead to small % losses.
Balancing coverage vs cost vs risk can be tricky, and I'd love to see the % of AUM covered be a lot higher.
Here's what Grok has to say about known bitcoin custodian insurance coverage... custodians can't afford to insure more than a tiny amount of AUM.
xitter.cf/BradyDale/status/21096…
Hugh Karp 🐢 retweeted
Great turnout today at @AccountableData's @DeFinition_evt!
Thank you to everyone who came out to our panel with @monad @Securitize @centrifuge and @chainlink 🙌
And stay tuned for @MontBlancDeFi's interview with @FINTECHTVglobal...
Hugh Karp 🐢 retweeted
Nexus didn't invent the mutual
@HughKarp explains what makes mutuals different from insurance, and why they've been around for so long...
Hugh Karp 🐢 retweeted
See the detailed Security Roundup report on our blog: nexusmutual.io/blog/onchain-…
Reinsurance returns onchain is going to grow massively.
Historically very hard asset class to access, large size $700-800bn.
Historic return profiles are good.
Duration requirement and return variability are the main aspects to manage.
DeFi yield opportunities are mainly in two buckets:
1. Higher risk / higher effort / higher yield - expert level
2. Treasury yield / instant withdrawal - cash, neobank rails
Middle ground of set and forget (with protected downside) needs more attention.
Publicly standing behind each claims decision is a very high level of accountability. All our large clients look at Nexus' claims history in their due diligence.
Full transparency around our claims is at the heart of what we do
Our Chief Legal Officer @AniaWiktoria7 shares why with @gunnercooke's Kathryn Dodds
Hugh Karp 🐢 retweeted
Full transparency around our claims is at the heart of what we do
Our Chief Legal Officer @AniaWiktoria7 shares why with @gunnercooke's Kathryn Dodds
Really well researched piece. Give it a read to understand the current state of coverage/protection for onchain yields.
The proposal is asking members to discuss:
- The formation of a new regulated reinsurance entity, Fern Re and an associated service company.
- Supply them with initial operating and risk capital
- All profits to be ultimately owned by NXM holders.
This will allow Nexus Mutual to bridge it's existing capital base to support regulated insurance ahead of deeper technical integrations.
Hugh Karp 🐢 retweeted
Real-world assets have grown 10x over the last few years to a market cap of nearly $30 billion
This makes tokenized stocks, treasuries and commodities a fixture in DeFi rather than a fad
However, it all rests on getting a real-world price onchain accurately, and some recent losses in the space have shown that can be a risky proposition
Whether it’s due to oracle failure, manipulation, misconfiguration, or a smart contract exploit, every link in the pricing chain is a potential flaw
What are the real risks behind RWAs, and how can you manage it?
Check out our blog to find out!
nexusmutual.io/blog/real-wor…
Hugh Karp 🐢 retweeted
Our new insurance policy would cover all slashing events in the history of Ethereum slashing
No safer place to stake than EtherFi
Stake now:
ether.fi/app/cash/earn/weeth
We’ve partnered with @NexusMutual to provide the largest ETH slashing cover in crypto history
Up to 15,000 ETH in validator slashing penalties
We run one of the largest validator sets on Ethereum
With $7+ billion in onchain risk covered since 2019, there was no better partner than Nexus Mutual
Great to see EtherFi prioritising user security yet again. This is how we progress insitutional adoption.
Crypto's largest-ever ETH Slashing Cover is here
@ether_fi has selected Nexus Mutual to protect its validators against up to 15,000 ETH in slashing penalties
@ether_fi runs one of the largest validator sets on Ethereum, so slashing isn't a theoretical tail risk
This cover was structured to hold up in even the most extreme scenarios, and it represents more than all historical #ETH slashing losses combined
Protection built for institutional scale
"We've always believed the safest protocols will ultimately win. That's why we've invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality," said @MikeSilagadze, Founder & CEO of @ether_fi
"We've known the ether.fi team since before it was ether.fi, and they've been focused on risk from day one. Covering their stakers for up to 15,000 ETH in slashing penalties is a historic step, and we're proud they chose Nexus Mutual to take it with them," said @HughKarp
See the full announcement below!
Hugh Karp 🐢 retweeted
Ten years ago last month, The DAO was drained of ~$60M in ETH, and the fallout literally split #Ethereum in two
For this edition of The State of Crypto Insurance, Nexus Mutual asked the people who've spent the decade since building risk infrastructure what the industry got right, and where it's still exposed
Inside the report 📄
We sat down with Griff Green, who co-led the white hat counter-exploit in 2016 and now directs @thedaofund, and @HughKarp, who founded Nexus Mutual in direct response to the protection gap the hack revealed
@Dialectic_Group and @M1Capital_ share how a decade of exploits has reshaped the way they price and manage DeFi risk
Plus the Q2 onchain risk review: $765M lost across 27 confirmed events, with $577M attributed to just two Lazarus Group incidents
Read the full report here: nexusmutual.io/blog/the-stat…
If crypto isn't treated equally to other assets then it shouldn't be taxed equally. Can't have it both ways.
