Houlangcoin｜NXM soared 45.4%, the "fire" of DeFi finally "burned" to the insurance leader Nexus Mutual
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NXM price chart
Wrapped NXM (WNXM), which was founded by members of the Nexus Mutual community and can be exchanged 1:1 with native tokens, also once exceeded $50, reaching a peak of $53.27. As of press time, it was quoted at $52.07, a 24-hour increase of 55.9%.
Nexus Mutual is not a new project. Why has the currency price suddenly increased recently?
Perhaps it is the popularity of DeFi, which has finally burned to a more vertical DeFi insurance track. On August 17, Andre Cronje, the founder of Yearn finance, announced the launch of yinsure.finance, a decentralized insurance service, making the DeFi insurance track that had been silent for a long time become lively again. Looking at the track, it is natural to look for the leader. According to the data website defipulse.com, Nexus Mutual ranks in the front row in the insurance field for locked positions.
Nexus Mutual is a mutual-aid insurance solution. Members of the mutual-aid association jointly contribute and share risks. It is similar to the mutual treasure launched by Alipay before, but the difference is that it uses token incentives to operate in a non-custodial manner.
Nexus Mutual's first product is the Smart Contract Cover, which provides claims in cases where "the code accidentally results in significant financial loss." This product was inspired by the DAO hack/Parity multi-sig wallet event of 2016/17. Members voted on the claim using a tested staking procedure.
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purchase interface
In Nexus Mutual, all governance measures are subject to proposals and votes by members, advisory committees, and owners. Proposals from members are subject to whitelisting by the Advisory Committee. Every governance proposal has a category associated with it, which defines the resolution to be implemented when voting closes.
A closer practice is: in early 2020, bZx was hacked, and Nexus Mutual completed the first claim.
But the development of Nexus Mutual has not been all smooth sailing. On February 25 this year, security researchers Mudit Gupta and Sam Sun exposed two loopholes in the governance measures of Nexus Mutual. Fortunately, the loopholes were not exploited by hackers, and the insurance fund was not lost.
Roxana Danila, chief technology officer of Nexus Mutual, immediately published an article on Medium to disclose the specific situation and solution of the vulnerability, and thanked the two security personnel who discovered the vulnerability.
A potential loophole, Roxana explained, is that a proposed solution has not been proven to work before members vote on it. Therefore, it is quite possible for a member of an advisory committee to whitelist a proposal for a particular category, while doing something else in practice. This means that while members are voting for "better company," there's a good chance they're unknowingly voting for something malicious.
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