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Nexus Mutual: DeFi has too many bugs
Nexus Mutual: DeFi has too many bugs
Defi

Nexus Mutual: DeFi has too many bugs

By Alfredo de Candia - 18 Sep 2020

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The famous Nexus Mutual platform, which provides smart contract insurance on the Ethereum blockchain, explained that decentralized finance (DeFi) is advancing faster than expected and this has led to several bugs.

For those who are unfamiliar with this project, it is a kind of full-fledged insurance fund. Nexus is in fact a company licensed by the British government that operates in a decentralized manner.

Nexus offers insurance for smart contracts of different protocols, so if there are losses, then the company would bear the cost and cover the loss.

One detail that should not be forgotten is that in order to participate in this project it is necessary to be a member and pass the KYC (Know Your Customer) procedure, paying an entry fee, which is about $1. Only then will it be possible to take out insurance.

DeFi bugs

With the increase in DeFi projects, the demand for insurance has increased in order to cover contracts. Coverage is done through the NXM token, and there is a mechanism to keep the price of the token balanced so as not to create problems with the guarantee.

Unfortunately, however, several projects have emerged that are exploiting these tokens to circumvent the limit imposed by the platform on the token price.

In detail these are:

  • wNXM, a token wrapped around the official NXM tokens, but which follow their market trend. These tokens cannot be used within the Nexus Mutual platform;
  • yNFT; they were created by yinsure which, as the name implies, are true NFT (Non Fungible Tokens) tokens that represent a hedge;
  • SAFE: this is a token that is received by staking the previous tokens, i.e. mining with insurance companies, but which has nothing to do with the Nexus Mutual project.

Among other things, this has also led to an incredible price increase of over $70. A few hours later, however, the price dropped to around $40.

Now the Nexus Mutual team has no choice but to go ahead with the roadmap and integrate new features, such as the one to offer an option to provide coverage of the entire smart contract with a single purchase, without this contaminating the entire protocol and other projects limiting it.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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