BIP 13: Launching with 2nd Coverage/Insurance Partner Nexus Mutual

Category: Other
Scope: Initiate new coverage with insurance partner Nexus Mutual on December. 28th 2020
Status: Approved


  • Explain what Nexus Mutual is as an insurance provider.
  • Receive approval of $BADGER token allocation for shield mining program


Badger has amassed almost $300M in TVL running on our smart contracts. It’s critical we give users multiple options to protect themselves in case of an incident. Apps like ours and DeFi as a whole are so new that I think it’s in the users best interest to acquire insurance.

We launched our first coverage program with much success through a partnership with Cover. As of this article we are the most collateralized and liquid protocol on the platform which includes some of the biggest companies in DeFi. This suggests a large demand by our users for coverage.

After review by the Nexus Mutual team, we’ve been approved to launch a shield mining and coverage program on their platform starting Dec.28th 2020. This would open up a new market segment/exposure for Badger while giving our users multiple options for getting protection when using our app.

Nexus Mutual is the leading platform for smart contract cover with almost $100M in TVL for insurance programs.


How Nexus Mutual Coverage and Shield Mining works .

On top of risk assessors earning NXM for staking on Badger DAO smart contract coverage, they can earn $BADGER through our shield mining program.

To incentivize our shield mining program I propose we allocate up to 75,000 $BADGER tokens.

The goal is to optimize for a reward rate of 2.5% (0.05 BADGER/NXM staked), which at 100k NXM staked would yield about 12 weeks of campaign length if we were to distribute 75k $BADGER. The 2.5% is on a weekly basis, so would be 100% annualized and fall in line with the current coverage rates on Cover for Badger DAO.

We can see how it goes and determine if 75k is too much which will become apparent within a few weeks of program launch. This proposal is for up to 75k tokens not mandatory.

I think those that purchase coverage on our smart contract and in turn are users, are some of the best people to incentivize with $BADGER tokens. There is a higher propensity for them to be active in the DAO and lead it’s direction.


If you are in support of this proposal vote “For”; if you don’t support this proposal vote “Against.”

If minimum threshold of 40 votes is met with positive sentiment then we will proceed with an official Snapshot vote. All voting will end by 5pm EST December 26th.

  • For
  • Against

0 voters


Awesome news! I’m a huge believer in DeFi insurance. Let’s go!


giving badger for this
giving badger for that
gonna be a worthless token if all it’s used for is paying people for everything

rip hodlers :confused:

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Really solid feedback. Backed with tons of merit

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Why not? Need to incentivize people who help the protocol. If just to hold tokens nothing will happed. And I thought first of all this is a governance token, not a store of value.

I think this is a good proposal and I fully support it.

This is a great idea .

Great idea! I really love that there’s DeFi insurance and was impressed when I learned about Nexus Mutuals not too long ago!

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SteadyMining steady trippin in the haters club.


Great news, institutional money will really appreciate this safety first direction

I’d just really like to see someone offer badger based cover in btc, not usd. I voted for this one, but I really think we should encourage the coverage providers who we give badger too, to spend a little time and figure out how to provide bitcoin based coverage for badger.

I’m glad this is likely to pass, but would appreciate hearing a developed argument from anyone voting ‘no’ on this. Having not just one, but multiple insurance options, to me is a no-brainer.

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This BIP is now available on snapshot here:

for context, i voted “for” on forum and voted “against” on snapshot. i believe that having a choice for the community is always better than not and wanted to see this moved to snapshot. badgers like progress.

the main thing that makes me hesitant about using nexus is the hack. read and draw your own conclusions:

here is hugh’s post-mortem on the hack, read and draw your own conclusions:

the other thing is that with nexus mutual insurance you have to purchase $nxm to shield mine. with cover you use yield-bearing-dai to then mint claim + no claim tokens. i won’t get into the specifics of the strategy difference between the platforms here. i voted no on the snapshot because i’m risk averse and mindful of rugs. still a big ol newbie compared to most around so take my thoughts for what they are, ygclyde’s thoughts. if i am completely off-base please let me know.

there is an enlightening exchange between sifu and @DeFiFrog about cover strategy here:

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roflolololololololol happy to be here this fine morning :ocean:

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