Nexus Mutual

Nexus Mutual is a decentralized insurance protocol built on Ethereum that lets users purchase coverage against financial losses caused by bugs or exploits in smart contract code. It targets participants in decentralized finance who want protection if a protocol they use is hacked or behaves in an unintended way. The protocol also offers custody cover for losses arising from centralized custodians and lenders, though it explicitly excludes events such as private-key theft or centralized exchange hacks.

Nexus Mutual operates on Ethereum and uses a mutual model in which NXM token holders collectively pool capital to back the coverage offered by the protocol. NXM is used to participate in governance, to stake against specific cover products, and to share in the risk pool; the token has no maximum supply cap and 1,693,321.63 NXM are currently in circulation, representing 100 percent of issued supply. Because the protocol has no independent consensus algorithm of its own, it inherits Ethereum's settlement and security guarantees.

The protocol generates fees from premiums paid by cover purchasers; over the trailing 30 days those fees totaled 128,641 USD, and over the trailing 12 months they reached 3,914,785 USD. Roughly half of fees are retained as protocol revenue, reflected in a take rate of approximately 50 percent over the trailing 30 days, with the remaining half flowing to the supply side — in this case the capital providers who back the risk pool. Holder revenue over the trailing 30 days stood at 64,320 USD, matching supply-side revenue of 64,321 USD over the same period. Fee volume declined 4.6 percent over the most recent 30-day window, and annualized fees based on that same window come to 1,565,132 USD.