Posting here to further push along the insurance discussion
Upfront Disclosure: I am a long-time member of the Mutual and hold NXM. I have not invested nor LP’d in Armor.
The previous discussion brought up by @AzFi had two parts: one around the purchaser of cover (individuals or protocol), and one around Armor/Nexus.
After further thought and discussions with @hughkarp, I personally believe the best course of action is a shield mining campaign directly with Nexus. Some of the benefits include:
- Token Distribution: $IDLE gets distributed to a larger audience, increasing stakeholders and decentralization
- No $IDLE sale up-front: There is no need for the protocol to market sell $IDLE, just distribute it in kind (however receivers of shield mining could liquidate their $IDLE)
- Closer Collaboration: Opportunity to work directly with the Nexus team, not through a 3rd party
- One-time cost: The deal with Armor would be on an annual basis, whereas Shield mining campaigns tend to be a one-time offering (note: another campaign could be ruin if additional incentives are needed to provide enough cover)
One other benefit down the line will be creating a covered strategy, where users deposit into a “Protected Pool” which buys cover from Nexus on behalf of the pool. This is possible via a new product coming from Nexus in the near future.
With this solution, the protocol would have a strategy that is protected, and users who have deposited into other (uncovered) strategies could still purchase their own cover.
Hugh did share with me that all shield mining campaigns have successfully dropped cover to the minimum price of 2.6%. I would like to open up the floor and invite the Nexus team to contribute here as well as anyone else with ideas/questions/concerns.