DeFi Insurance company Nexus Mutual introduced a pledge system

BlockBeats - Nexus Mutual, the DeFi insurance company, has launched a pledge system that rewards users for pledging contracts they consider secure.

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Nexus Mutual designed a new system to increase rewards, better allocate mechanisms, eliminate queues and reduce lock-ups. The new system allows pledges on multiple contracts (such as Uniswap, Maker, and bZx platforms) to increase potential returns and improve capital efficiency.

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At the same time, the rewards and penalties will be Shared in proportion to the pledge rates on different contracts.

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At present, the queuing system has been canceled, the user can at any time after the 90 - day lock-up period withdrawal pledge, of course, can also choose to continue to mortgage are rewarded, but will also be destroyed danger (a contract risk occurs, the Nexus Mutual need to produce loss claims, so the user in the pledge contract tokens NXM will be destroyed).

Rhythblockbeats sees Nexus Mutual's pledge system as a way to transfer some of the gains and risks to the user. This model has been widely used in traditional finance. For example, the World Bank has issued "plague bonds", which are anti-epidemic agreements designed to transfer the risks and benefits of epidemics to global financial markets.

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The working principle of

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- in the NXM

Users deposit their NXM (Nexus Mutual native token) in the risk assessment module of the Nexus Mutual app.

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- Mortgage NXM to a smart contract that you think is secure

Bet against these NXM by mortgaging it to any smart contract system you think is safe, and buy smart contract insurance on that system. You can bet 10 times the amount you hold NXM on a number of different contracts, equivalent to a maximum of 10 times leverage.

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- Earn rewards

The incentive system means that users will be rewarded for every secure contract they pledge.

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- Deposits may be destroyed

If there is an accident in the security of the mortgage contract, the pledged token will be destroyed.

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parameter

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The maximum bet on each contract = the initial margin & NBSP;

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The minimum bet on each contract =20NXM& NBSP;

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The maximum total of all bets = up to 10 times the initial deposit

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Lock period =90 days

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return

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Nexus Mutual's insurance success depended on aggressive bets by risk assessors to suggest good and bad risks. The more you bet, the more insurance you can buy for each piece. It is therefore important to reward risk assessors appropriately. As a result, users have also increased their rewards to punters from 20 per cent to 50 per cent.

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The new system not only increases rewards, but also distributes them more evenly. Risk assessors do not have to queue for rewards as in the old system, and the rewards will be distributed proportionately to anyone who buys a contract.

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Text link:https://medium.com

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