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19710838 No.19710838 [Reply] [Original]

If you don't own it, but do own eth, you're a moron.

The collateral level is slowly rising and is going to explode when eth moves up due to having dai-derived contracts while exclusively holding eth as collateral.

Not to mention when people realize this project exists and fomo into it a bit the collateral level will go up and stay up, probably making the tokens go up to 0.02eth+.

Best of all there's literally no downside unless the entire defi system blows up and is hacked and the mutual token holders vote to approve releasing all the collateral which would be stupid on their part.

It's literally free eth. Just put it in, wait 2 months, pull it out. 0.0165 eth/NXM -> 0.02+ eth/NXM.

There's no risk.

I'm not even kidding. All 100 eth I have is in this.

>> No.19710884

Oof, you have to be a member to buy NXM? I don't think this will explode in price as it is not freely traded.

>> No.19710962

>>19710884
Become a member is practically free, buy it, wait.

It won't 100x, but due to having around 20% of the liabilities denominated in Dai if Eth goes to even $300 the collateral level will go to 176% or about increase your eth position by 60% with next to no downside risk involved nor liquidiy-issues due to how the token price is calculated on the platform in relation to collateral.

That's without buyers even coming in.

>> No.19711012

>>19710962
But let's say we get another bloody black monday and ETH drops back to $90. Then the thing is under-collateralized and what then, you get liquidated?

It's nice to think things only go up, but I got burned on MKR CDO's this way.

>> No.19711107

>>19711012
> Then the thing is under-collateralized and what then, you get liquidated?

Nope, that's why I only throw a few eth worth into lending protocals and things like uniswap.

There's no liquidation mechanism with Nexus Mutual. The only way the locked collateral is released is if a defi-hack occurs that is confirmed to fit the requirements listed in the contract AND the nexus mutual token holders vote to approve payout.

If under-collateralization occurs they simply block the redemption of NXM into Eth and give more NXM per Eth you deposit. Which is great if you can sneak in during such an event, but otherwise due to dollar being candywrappers...well ultimately that dai that's insured will lose value compared to the eth collateral in the long-run, or even medium/short-run. Literally next mild pump or push up to support and you get great returns.

>> No.19711118

>>19710884
>>19710884
>>19710884
>>19710884
>>19710884

>> No.19711210
File: 1.44 MB, 4096x3072, 1590154125738.jpg [View same] [iqdb] [saucenao] [google]
19711210

>>19710838
>If you don't own it, but do own eth, you're a moron.

>> No.19711725

>>19711210
What's with the monkey zyzz m8

>> No.19711955

>>19710838
cool, never seen this on biz. Buying NXM right now might not be the best timing since the foundation is considering minting some NXM if ETH doesn't go up in price fast enough.
https://forum.nexusmutual.io/t/foundation-funding/36/25

>> No.19711969
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19711969

>>19711955