Our new Nexus Mutual integration lets companies purchase covers for their wallets
This is a game-changer folks: we’re announcing our integration with Nexus Mutual! A first-of-kind to to enable companies to purchase covers for their Multis wallet. We call it Decentralized Peace of Mind: you don’t have to choose between self-custody or insurance anymore ?
What is Nexus Mutual?
Nexus Mutual aims at reproducing the centuries-old mutual insurance scheme — communities pooling their resources to protect each other from the risks they all face. Their main product is smart contract cover. It provides a cover against hacks and potential bugs in smart contract code, resulting in a financial loss. For example, the cover is intended to pay-out on events like The DAO hack, and the two Parity multi-signature wallet issues. Note that Nexus Mutual is not an insurance company — it is run entirely by its members, and only they can decide which claims are valid ?
What does it mean for your Multis account?
Your Multis account is built on top of a multisignature wallet. This wallet is effectively a smart contract built by Gnosis. This wallet is a self-custodian one. It means that Multis do not hold your funds — you’re in charge. In the unlikely event of a failure of the Gnosis smart contract resulting in funds loss, no one can be held responsible — you’re on your own.
These smart contracts have proven secure and resilient. They are widely used in the crypto ecosystem and have been thoroughly audited. We’ve written more on that here. But we wanted to go the extra mile to offer peace of mind to our users: companies should be the ones choosing whether they want to purchase extra covers to secure their funds. Not us ?
How to cover your funds?
Once you’ve created your company account on Multis and made your first deposit (you can also sync’ your existing Gnosis smart contract if you already have one), go to the “Insurances” menu in your company’s settings.
There are two steps to purchase a cover for your funds — don’t worry, it’s way quicker than your average insurance policy ?
- Become a member of Nexus Mutual — you’ll have to create an external wallet on which you’ll receive your pay-out in case you lose your funds
2. Get a quote for your cover:
- Get a quote. This quote depends on market dynamics, just like your average insurance policy
- Enter the Gnosis smart contract’s address: gnosismultisig.nexusmutual.eth
- Enter the amount in DAI (USD) or ETH you would like as a fixed cover amount
- Enter the length of time you want the coverage to last
- To set the cover live, you have to pay the premium upfront, all-at-once. (E.g. $1’300 for a 12-month-cover on $100’000 at 1.3%, today’s current rate)
3. It’s live! You can now manage your covers and make claims ?
How to make a claim?
Nexus Mutual doesn’t approve or reject claims like a regular insurance company does. Members are the ones to decide, through an online voting process. Just like old-school mutuals! Nexus Mutual is a UK company. Joining a pool means you become a legal member of a UK company (the pool is registered too). Your membership rights will therefore be backed by legal agreements, and all members will have legal rights to the pool of funds ?
Multis is driven by one objective: help companies and teams thrive in a decentralised world. This starts by helping them have peace of mind when managing their funds with a self-custodian wallet, so they can focus on building amazing products. They don’t have to use custodian solutions anymore for that ?
Nexus Mutual is building the first decentralized alternative to insurance. They are on a mission to help people to connect and share risk together without the need for an insurance company, and we’re proud to contribute to it ?
This is just the beginning of our love story with Nexus Mutual. Check out what’s next:
- Improved wallet support (Portis, not just Metamask on Nexus side)
- Covers for funds lent via our Compound integration
- Deeper integration to our interface with instant live quotes
Stay tuned ?
Published at Mon, 12 Aug 2019 16:33:40 +0000
{flickr|100|campaign}
