In what seems like a never-ending saga of crypto hacks, Nexus Mutual has announced the launch of its latest Custody Cover program to safeguard crypto users’ interests. According to an official blog post released on December 2nd, Nexus Mutual disclosed its custody cover insurance solution that can be utilized by the users of centralized exchanges to safeguard their virtual digital assets.
Nexus Mutual’s custody cover solution intends to protect users from the magnitude of any potential hack. The users can utilize the program in two cases. Firstly, if the custodian is prone to any hack and the user loses more than 10% of total assets. Secondly, in case the custodian halts withdrawal for more than a quarter (90 days)
Nexus Mutual
Nexus Mutual aims at widespread DeFi adoption.
Nexus Mutual is a decentralized insurance solution that aims at providing risk mitigation solutions. They intend to capture the DeFi insurance market by launching products with a robust infrastructure that builds a solid foundation for crypto users’ protection solutions. Moreover, Nexus Mutual intends to build for tomorrow.
With its first product, the Smart Contract Cover, it gained widespread attention from the developer community. However, the first product was aimed at mitigating external risks in the DeFi space. And with the Custody Cover solution, it aspires to protect within the crypto ecosystem. Furthermore, their primary motive involves serving the crypto community and onboarding DeFi users for widespread adoption. Moreover, Nexus Mutual plans to become the ideal marketplace providing coverage to risk aspects in the virtual financial markets.
Nexus Mutual will be onboarding various custodians on its platform to ease custody covers for its users. The custodians, namely is Celsius, BlockFi, Nexo, inLock, Ledn, and Hodlnaut. Moreover, the custodian contract is live on the Nexus platform for users to purchase cover. To build a broader DeFi ecosystem, Nexus Mutual aids newcomers to space by protecting them against exploits.
Insurance has become one of the important aspects of the DeFi space with a gradual increase in hacks. Recently, we saw how a hacker took advantage of the faulty Dai-pegged data in Compound Finance and swiped away $100M because of the centralized Coinbase oracle. Moreover, several projects like Yearn Finance and Cover protocol are collaborating to utilize the shared resources to enhance platform security.
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