Premia & Nexus have got you covered
Premia protocol coverage on Nexus Mutual at launch
On Monday (Nov. 1), along with the launch of the new protocol, Premia will launch a shield mining campaign to coincide with the platform’s Protocol Cover listing on Nexus Mutual. The Premia community voted 98.75% in favor of conducting a Shield Mining Campaign to bootstrap staking against the Premia protocol when it launches.
What is Nexus Mutual?
Nexus Mutual is an Ethereum-based risk-sharing platform that offers risk-cover instruments called ‘Mutuals’. At its core, Nexus Mutual utilizes community governance by pooling members funds and using those funds to offer protection products such as the provisioning of Smart Contract Cover to its members.
Members have full autonomy over claims — decisions on payouts are recorded and enforced by smart contracts on the Ethereum Public Blockchain. You can learn more about Nexus Mutual through their website.
Nexus Mutual supports a range of protocols with a limited budget, so they need a mechanism to prioritize their underwriting capabilities. This decision is delegated to NXM token holders, who can stake their NXM on the project(s) they think deserve to have more purchasable cover.
Shield mining
Shield mining campaigns give Risk Assessors added incentives to stake against newly listed projects to bring down the cost of cover for users within a short amount of time. There have been more than twenty Shield Mining Campaigns to date, and the average annual cost of cover after a shield mining campaign is less than 3%.
In an effort to bootstrap purchasable cover for Premia, we are launching a Shield Mining program in partnership with Nexus Mutual with a budget of 15,000 PREMIA to be shared across NXM stakers who stake against the Premia Finance pool at a rate of 0.05 PREMIA per NXM per week, in addition to the baseline NXM staking rewards.
To stake NXM, visit: https://app.nexusmutual.io/staking/new/add-projects and choose Premia Finance.
Purchasing Cover for Premia
Users looking to purchase protection for Premia can do so here ; and they can find more information about the terms of the cover offered from Nexus here.
Before you start:
- Connect the account you want to take out Cover from. Ensure that the wallet is funded and a member of Nexus Mutual DAO. You can read more about Nexus Mutual membership here.
- Head over to Nexus Mutual Premia Finance Cover vault here.
Enter the amount of ETH or DAI you want to cover, as well as the length of the cover to get a quote. The amount will be the payout you receive from Nexus Mutual should your claim be accepted.
Click on Get quote to receive your personalized quote, which you can then accept.
Protocol Cover for Premia users
Premia is a decentralized options market based on a pool-to-peer architecture, similar to Uniswap or SushiSwap, but for options. Premia is currently deploying on Ethereum, with L2 and side-chain support shortly after.
With Premia, users can trade their options using an automated peer-to-pool market making algorithm; earn yield on their favorite DeFi assets by underwriting on-chain options and managing advanced liquidity provisioning strategies; and hedge against market volatility, while protecting their gains.
Premia users will be able to cover their assets across all blockchains with Protocol Cover, which protects against:
- Code being used in an unintended way (e.g., hacks or exploits)
- Severe oracle failure
- Economic design failure
- Governance attacks
Look for an announcement on Monday (Nov. 1) about the Premia shield mining campaign and listing from the Nexus Mutual Twitter account. Users who have any questions about Protocol Cover can ask one of the Mutant Mods in the Nexus Discord: discord.gg/xxFaAEn/
FAQ
Nexus Mutual has an extensive FAQ that can help to answer any questions.
