- The DeFi insurance coverage aggregator Armor.Fi has introduced a partnership with Nexus Mutual.
- The brand new arNXM vault seeks to draw 250 million USD in liquidity.
- Insurance coverage takers can mint tokenized insurance coverage contracts by the arNFT interface.
Attributable to excessive variety of good contract hacks, DeFi insurance coverage turns into more and more necessary. Already one of many main initiatives on this subject, Nexus Mutual will broaden their product vary by a partnership with Armor.Fi.
Already 380,000 wNXM staked
Armor.Fi’s arNXM vault accepts wrapped NXM tokens and converts them at a fee of 1:1 into arNXM. It will ultimately change all wNXM tokens in circulation. Thus far, over 380,000 wNXM have been deposited within the arNXM vault. This corresponds to roughly 17 million USD out of their protection aim of 250 million.
— Gauthier 🐢 (@TaylorKrot) January 26, 2021
Deposits don’t require KYC and are yield-bearing with a present estimated APY of 20-30%. The vault circumvents Nexus Mutual’s obligatory lockup interval, permitting for extra versatile investments.
Tokenized Insurance coverage Contracts
Armor’s arNFT interface takes out insurance coverage contracts which can be underwritten by Nexus Mutual and wraps them into non-fungible tokens. Which means that insurance coverage takers can promote their contracts on the secondary market if they aren’t wanted anymore. 90-day insurance coverage at present prices 0.0064 ETH per ETH lined.
Armor additionally plans to open yield vaults for NFT insurance coverage contracts, the place they are often staked in an effort to earn rewards in ETH, DAI, and ARMOR tokens. Moreover, Armor.Fi has began a liquidity mining program that can final for twenty-four weeks and accepts deposits in LP tokens from Uniswap, SushiSwap, 1Inch, and Balancer. Each the protocol’s native ARMOR tokens and arNXM tokens are eligible to earn liquidity mining rewards.