Contents<\/p>
- 1<\/span> What is NXM?<\/a><\/li>
- 2<\/span> Historical Background of NXM<\/a><\/li>
- 3<\/span> Need for DeFi Insurance<\/a><\/li>
- 4<\/span> NXM Token <\/a>
- 4.1<\/span> How Does NXM Work?<\/a><\/li><\/ul><\/li>
- 5<\/span> NXM Use Cases<\/a>
- 5.1<\/span> Purchasing Smart Contract Cover<\/a><\/li>
- 5.2<\/span> Risk Assessment <\/a><\/li>
- 5.3<\/span> Claims Assessment<\/a><\/li>
- 5.4<\/span> Making Claims<\/a><\/li>
- 5.5<\/span> Governance<\/a><\/li><\/ul><\/li>
- 6<\/span> NXM Evaluations<\/a>
- 6.1<\/span> Protocol Concept and Backup Technology<\/a><\/li>
- 6.2<\/span> Protocol Security<\/a><\/li>
- 6.3<\/span> Protocol Legal Background Check<\/a><\/li>
- 6.4<\/span> Market Dominance, Total Locked Amount, and Dynamics<\/a><\/li>
- 6.5<\/span> Exchange Listing<\/a><\/li>
- 6.6<\/span> Protocols Pros and Cons<\/a><\/li><\/ul><\/li>
- 7<\/span> Conclusion of NXM Review<\/a><\/li><\/ul><\/div>\n
What is NXM?<\/strong><\/span><\/h2>\n
NXM is a decentralized finance protocol that offers its users a means to protect their transactions against smart contracts risks.<\/p>\n
It\u2019s a project that gives investors cover for specific activities within the DeFi ecosystem. It can be referred to as insurance, though it’s not permitted due to some legal implications.<\/p>\n
When it comes to traditional insurance, the main focus for the providers is profits. This is because it takes profit for the insurance company to remain in business. Thus, their major emphasis lies outside the policy holders\u2019 needs as they try first to satisfy their priority of getting profits.<\/p>\n
Conversely, NXM aims to focus on profits by providing different insurance that supersedes those from the traditional aspect. The protocol employs blockchain technology to give protection to its users rather than seeking its profit.<\/p>\n
Buy NXM with Our Top Broker<\/span><\/a><\/div>\nNXM lives up to its name as a mutual project. For the protocol, the policyholders are its native NXM token holders. They stand as the blockchain owners and authorizes the running in the ecosystem. The token holders have the governance power in the blockchain and make decisions that concern the incentivization.<\/p>\n
Historical Background of NXM<\/strong><\/span><\/h2>\n
NXM is designed as a protocol operating with a discretionary mutual structure. This means that all insurance claims on the platform are taken care of by the Board (which comprises Nexus Mutual members). The protocol was launched in May 2019 to offer protection to crypto users against smart contracts vulnerabilities.<\/p>\n
Through its operations, NXM has accrued an undisclosed amount from blockchain-based venture capital companies like KRI, Kinetic, 1kx, and MilliWatt.<\/p>\n
NXM has a 10-member team led by Hugh Karp. He has been in the insurance industry with over 15 years of experience. Karp is the CFO of UK Life Operations.<\/p>\n
Other prominent team members include Graeme Thurgood, a board member with 17 years of experience in mutual launching in the UK. Another member is Evan Van Ness, who is also a notable Ethereum community member.<\/p>\n
Besides its financial backers and project members, NXM has a five-member advisor board. However, the advisory board remains the most debatable feature of the project. The reason is that the board has centralized control over the project. The board members are Hugh Karp, Graeme Thurgood, Nitika Arora, Rei Melbardis, and Nick Munoz-McDonald.<\/p>\n
Need for DeFi Insurance<\/strong><\/span><\/h2>\n
From the inception of digital assets through the first and prominent Bitcoin in 2009, crypto users have incurred several losses. Some of these losses occur either from theft, hackers, or private keys misplacement.<\/p>\n
There are always challenges with crypto funds’ security, protection, and even recovery. The crypto industry functions differently from the traditional concept banking system, with insurance, which covers considerably.<\/p>\n
Then comes the use of smart contracts from Ethereum\u2019s launch in 2015 that magnified the problems for funds security. Most of the smart contracts are for value storage meant especially for Ether storage.<\/p>\n
Unfortunately, these have some shortfalls and are more susceptible to hacking. An instance of such vulnerability is the 2016 DAO hack that lost over 3.6 million worth of Ether.<\/p>\n
Though some users have solely stored their funds in private wallets, there is no protection for their holdings.<\/p>\n
Furthermore, several DeFi smart contracts have no audits and so can pose security challenges for users. Therefore, there’s a need for strict measures to prevent cryptocurrency losses if digital assets continue to gain more adoption globally.<\/p>\n
This narrows to the necessity for developing a decentralized insurance project to combat the losses in the DeFi ecosystem. Moreover, it will help protect the enormous total locked value (TVL) of the growing decentralized protocols and applications.<\/p>\n
As the decentralized finance community may not frequently discuss insurance issues, they can in any way deny its necessity. It has all it takes to offer confidence and protection to crypto investors as they transact on DeFi smart contracts.<\/p>\n
NXM Token <\/strong><\/span><\/h2>\n
NXM has its native token, NXN, which signifies the membership rights in the mutual. Being built on the Ethereum blockchain, the NXM tokens are ERC-20 tokens. Thus, they can be stored in any ERC-20 compatible wallet.<\/p>\n
- 6.2<\/span> Protocol Security<\/a><\/li>
- 5.2<\/span> Risk Assessment <\/a><\/li>
- 5<\/span> NXM Use Cases<\/a>
- 2<\/span> Historical Background of NXM<\/a><\/li>
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