Hugh Karp 🐢

#Insurance + #Ethereum.
Founder @NexusMutual #defi

[Hugh Karp 🐢 @HughKarp]

Really well researched piece. Give it a read to understand the current state of coverage/protection for onchain yields.

[stablewatch @stablewatchHQ]

https://t.co/MEAcdMu1Zj

[Hugh Karp 🐢 @HughKarp]

https://t.co/eg0ywtYHJn

[Hugh Karp 🐢 @HughKarp]

Important Nexus Mutual governance proposal now live on our forum🌿

[Hugh Karp 🐢 @HughKarp]

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 🐢 @HughKarp]

@ImperiumPaper @Hiraweb3 You need to be able to prove the theft occurred. Which means determining the difference between theft and the user simply transferring funds to another wallet they control and claiming it was theft.

The main difference is how easy it is to defraud.

[Hugh Karp 🐢 @HughKarp]

@ImperiumPaper @0xLouz It's solvable with a multi-sig set-up and other supporting tools. It isn't solvable with pure keys eg EoA. With an EoA set-up it's trivial to defraud the insurance.

[Nexus Mutual @NexusMutual]

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!

https://t.co/WxlmfuO3qK

[Hugh Karp 🐢 @HughKarp]

@DCinvestor You could argue the branding made sense to keep the big serious players at arms length until the tech was ready. It's been time to switch for a while though.

[ether.fi @ether_fi]

Our new insurance policy would cover all slashing events in the history of Ethereum slashing

No safer place to stake than EtherFi

Stake now:
https://t.co/lsw3Mcln1s

[Hugh Karp 🐢 @HughKarp]

Great to see EtherFi prioritising user security yet again. This is how we progress insitutional adoption.

[Nexus Mutual @NexusMutual]

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 https://t.co/c0M0IMKoKi team since before it was https://t.co/c0M0IMKoKi, 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!

[Nexus Mutual @NexusMutual]

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: https://t.co/QPZbXpdwaA

[Hugh Karp 🐢 @HughKarp]

@el__perdido @CryptoChrisG Yes, depending on your location it requires a declaration.

[Hugh Karp 🐢 @HughKarp]

I can't be the only DeFi user who likes set and forget yield opportunities that just keep compounding. Can I?

[Hugh Karp 🐢 @HughKarp]

@ryanrodenbaugh @vaultsfyi yeah, I'm aware. I use you guys regularly 🙂

[Hugh Karp 🐢 @HughKarp]

Reported vs actual APY's in crypto is a real problem.

[Hugh Karp 🐢 @HughKarp]

If crypto isn't treated equally to other assets then it shouldn't be taxed equally. Can't have it both ways.

[The Block @TheBlockCo]

NEW: UK Labour MPs are seeking a permanent ban on crypto political donations, per The Guardian.

They are currently gathering support for proposed amendments to a key bill that is set for a House of Commons review next Tuesday.

[Hugh Karp 🐢 @HughKarp]

@0xEulersID Follow standardised formulas.

[Hugh Karp 🐢 @HughKarp]

@el__perdido @CryptoChrisG Details are here. Can share more via DM if you like.

https://t.co/FP1pdtXikw

[Hugh Karp 🐢 @HughKarp]

@CryptoChrisG Nexus has released a real-world insurance vault with a protected baseline return, 6%, you can also lock in for up to 2 years to share in potential upside.

I'm allocating my long term funds there.

[Nexus Mutual @NexusMutual]

We just crossed a major milestone: $7 billion covered 🎉🎉🎉

We're honored that so many people, protocols & institutions trust us to be their partner to manage onchain risk

A big thank you to all of the mutual and team members who made this possible!

https://t.co/t4pgLVq75l