Nexus Mutual Enters Bancor’s DAO Ecosystem to Generate Protocol-Owned Liquidity

Brian Njuguna   Mar 10, 2022 06:54 2 Min Read


To gain durable decentralized liquidity, ethereum-based insurance platform Nexus Mutual staked treasury funds worth $2 million in the form of wrapped NXM (wNXM) tokens in decentralized trading protocol Bancor.

Joining more than 30 decentralized autonomous organizations (DAOs) using Bancor’s treasury management solution, Nexus Mutual seeks to earn yield with its treasury deposit without selling its native tokens.

Hugh Karp, Nexus Mutual founder, acknowledged:

“Bancor doesn’t require any maintenance, is battle-tested and will ultimately drive higher income to our DAO and community due to there being no Impermanent Loss. We’re able to fund our pool with wNXM-only liquidity and attract loyal token holders as long-term liquidity providers without needing to sell tokens or issue incentives.”

Bancor is emerging as a sought-after DAO treasury management provider based on its “Impermanent Loss” guarantee. It uses an automated safe staking system where depositors earn yield from more than 150 integrated tokens. They include Chainlink (LINK), Synthetix (SNX), Basic Attention Token (BAT), and Enjin Coin (ENJ). 

 

The decentralized liquidity arena is ticking

More players are entering the decentralized finance (DeFi) staking arena, given that Bancor paid liquidity providers more than $200 million in 2021.

 

Nate Hindman, a Bancor contributor, acknowledged that the decentralized liquidity route was the way to go and stated:

“We are very excited to have Nexus Mutual join the growing list of projects building sustainable decentralized liquidity for their tokens on Bancor. Both Nexus and Bancor are focused on designing decentralized solutions for risk-averse users seeking safe and reliable access to DeFi.”

With Bancor allowing DAOs to offer liquidity, they are able to safeguard their native tokens from sell pressure, enabling them to optimize the productivity of their staked funds. 

 

Some of the DAOs supported include Harvest Finance, Paraswap, UMA, KeeperDAO, Saffron Finance, WOO Network, and Instadapp.

 

Institutions are continuously seeking the diversification of digital assets for maximum returns, per a recent Genesis report

 

The study acknowledged investors' promptness to expand their digital asset investments while demonstrating an avid interest in DeFi coins. Furthermore, institutional investors took a deeper approach to participating in the crypto market. 


Image source: Shutterstock

Nexus Mutual Enters Bancor’s DAO Ecosystem to Generate Protocol-Owned Liquidity

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