What is Nexus Mutual (NXM)?
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🟢 The simple version
Plain English — no jargon. Start here.
Nexus Mutual is a decentralised insurance mutual where NXM members pool risk and vote on claims when DeFi protocols are exploited — KYC is required for NXM membership, while wNXM exists as a KYC-free tradeable version.
DeFi insurance with claim voting
Smart contract exploits cost DeFi billions annually. Nexus Mutual: members pool NXM as capital, purchase cover on specific protocols, and vote on claims. If Aave is hacked and you held cover, members vote on validity, and if approved you receive compensation. KYC required for NXM (mutual membership structure). wNXM: tradeable on exchanges without KYC, but wNXM holders can't vote on claims or govern. v2: staking pools per protocol — stake on Aave to earn, slashed if Aave is exploited (aligns expertise with risk). Is NXM legal in India? Yes. KYC required. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
v2 staking pools
Nexus v2 staking: choose specific protocols to stake against. Earn yield for providing cover capacity. If that protocol is exploited, your staked NXM is seized to pay claims. This creates expert incentive: people who understand protocol security stake on it, and lose if wrong.
🟣 The full technical picture
For the technically curious.
Key facts
- NXM: Governance + capital (KYC required)
- wNXM: Tradeable, no KYC, no governance
- Products: Smart Contract Cover, Protocol Cover, Yield Token Cover
- v2: Protocol staking pools (earn/slash per protocol)