Discount on all Nexus Mutual covers against hacks and smart contact failures
Bright Union is proud to announce that users will now be able to buy coverage for significantly cheaper than directly through partner, Nexus Mutual.
When buying a Nexus’ cover through the Bright Union App, users will actually be paying for their cover in NXM under the hood. This provides users with a significant discount- the specific number of which varies depending on the price of wNXM to NXM.
So far in 2022, the average price of the discount is 67% [the lowest the discount has been was 47%, 03/01/2022, and the highest 75%, 19/05/2022].
Nexus Mutual — first mover in DeFi insurance
Nexus Mutual is one of the top platforms for coverage against hacks and smart contact failures. With over 70 protocols, exchanges and custodial wallets available, everyone can benefit from this discount. One of the first movers in the DeFi insurance market, Nexus Mutual has long been a household name within DeFi insurance.
Nexus Mutual’s most popular coverages are:
Users will be able to benefit from this significant price reduction on this selection and more: check out all coverages available.
How the discount works
NXM and wNXM
One of Nexus Mutual’s strengths is its innovative tokenomics and how the NXM token connects with capital underwriting. NXM is a utility token whose price is directly related to the amount of funds within the mutual. NXM can only be withdrawn when there is sufficient insurance capital to underwrite all obligations. Because this hasn’t been the case in recent months, the NXM token isn’t very liquid.
To solve this token the wNXM is introduced, which is a tradable, ‘wrapped’ version of the NXM token. The wNXM token can be traded at multiple exchanges. These tokens trade at a different price even though their underlying/fundamental value is the same. By buying wNXM, unwrapping it for a higher price, and buying your coverage in NXM, you will get a massive discount (74% at the time of writing).
Insurance buyers are able to get this discount themselves directly through the Nexus Mutual App. In fact, they are encouraging users to do so with the simple guide provided by Nexus Mutual.
Automated for users by Bright Union
In our mission to simplify DeFi insurance, Bright Union has automated this entire process. Users simply purchase their coverage using Eth or DAI (depending on their preference). Yet, on the backend of the Bright Union app, this currency is swapped for wNXM and the coverage price is significantly lower than if it were bought in Eth. A small swapping fee will be deducted, but the price of the cover will be significantly reduced regardless.
DeFi Insurance adoption
The recent market crash has affected every participant of the DeFi and CeFi ecosystems. Decentralization as a concept is being tested to the extreme as some protocols are opting for emergency, temporary centralization to prevent their collapse.
Moving forwards, investors will be demanding more comprehensive security and asking protocols whether their APYs are sustainable or timebombs (like Luna/Anchor). Bright Union is building and developing in anticipation of a market turnaround. Bright Union and their strong network will be ready to help users mitigate their risks in an easy and affordable manner. This wNXM discount is just one way that we are bringing DeFi insurance to the masses and increasing accessibility to some users.
About Bright Union
Bright Union is the world-leading multi-chain decentralized finance cover marketplace. A platform to aggregate and match supply and demand, it also accelerates the industry by providing strongly needed insurance liquidity.
By aggregating & accelerating the entire web3.0 insurance landscape, Bright Union is uniquely placed to offer easy integration to any dApp, wallet, exchange or metaverse and provide their investors an extra layer of trust by offering the best insurance policies on point of need
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