The main reason why I don’t move my entire savings accounts to Idle is that it is not ensured. My real world bank account is insured for up to 100k USD, However, Idle is not, so I am cautious to deposit too much of my savings and it. There are some options for insurance already out there, For example, Nexus Mutual, however you can see that the cost of insurance is about 30%, at that rate, you’d almost certainly lose money rather than gain by using it with Idle.
I believe that if more people contribute their NXM tokens to the Nexus Mutual Idle pool that insurance costs would go down, but I am not so well versed on how Nexus works, so if someone knows more and can confirm that it would be great.
There are crypto insurance platforms out there, Nsure is one I have been hearing about recently, and I’m certain there are others out there, but I’m not certain which ones are best.
If we can lower the cost of Nexus Mutual insurance by incentivizing people to add NXM to the Idle pool on Nexus Mutual, then I think it might be a good idea to use part of the idle treasury funds to do that. Many of the insurance coverages offered on Nexus are as low as 2.6%, like for ETH 2.0, Uniswap, Curve, Balancer, etc.
I certainly know that I would be very happy to pay 2.6% to guarantee the safety of my Idle assets, they would still be earning a far higher rate than any brick and mortar savings account, even minus the 2.6%. Of course cheaper insurance would be better, but I don’t know how easy that would be to do.
Perhaps we need to connect with the Nexus Mutual team to learn more about how this works and how we might be able to lower the price of insurance?