Businessdefi insuranceHodlnautNexus Mutual

Nexus Mutual Offers DeFi Insurance to Another Bitcoin Lending Platform

Bitcoin lending service Hodlhaut has partnered with Nexus Mutual, creating a smart contract on Ethereum to provide insurance coverage to its investors. 
Hodlnaut Buys Into NXM Pool
Centralized financial service platform Hodlnaut has joined forces with Nexus Mutual to provide insurance coverage up to $6.7 million at a premium of 2.6%.
The firms deployed an Ethereum smart contract Hodlnaut Custody Cover to offer coverage to Hodlnaut users in the event of more than 10% loss in hack or theft or withdrawal suspension of more than 90 days. Hodlnaut has pledged $1 million of equity to the partnership.
A major portion of the equity will be used to stake NXM in the smart contract to underwrite the insurance.
Additionally, Hodlnaut has announced $110,000 NXM in yield farming rewards for the smart contract’s early stakers.
Hugh Karp, Founder of Nexus Mutual, wrote to Crypto Briefing: 
“This partnership is another demonstration of how open financial products on Ethereum provide the building blocks for amazing customer experiences. Hodlnaut users will have an easy way to protect themselves while Nexus Mutual members will benefit from increased distribution.”
Nexus Mutual recently expanded the business outside the blockchain to cover centralized exchanges like Coinbase, Kraken, Gemini, and Binance. The partnership marks another business merger between centralized services and the DeFi ecosystem.
Hodlnaut provides interest on Bitcoin, Ethereum, and two stablecoins in USDC and USDT by lending to institutional margin traders. In April 2019, the platform received a $100,000 pre-seed investment from Antler to kickstart the project. 
Disclosure: The author held Bitcoin at the time …
Story continues on Crypto Briefing

Related posts
BusinessMarvelMogul ProductionsMoviesNFTsRob Prior

Star Wars, Wolf of Wall Street NFTs Coming to Ethereum

Mogul Productions is tokenizing artwork inspired by a range of iconic movies.  Mogul Productions Links With Acclaimed Artist  Rob Prior, an artist whose body of work includes pieces for Marvel and D.C. Comics, is creating a collection of NFTs inspired…
BusinessDerivativesDEXsProof-of-StakeVega

Derivatives Trading Protocol Vega Raises $5 Million in Funding Round

Vega has closed a $5 million funding round, with contributions from a host of big players.  Vega Secures Funding  Vega has raised $5 million in a funding round. Investments came from a host of leading venture capital firms and traditional…
BNY MellonBusinessFireblocksFunding

BNY Mellon Joins $133M Investment in Crypto Startup Fireblocks

The new funding brings Fireblocks’s valuation just shy of $1 billion as Fireblocks. America’s Oldest Bank Taps Fireblocks BNY Mellon’s latest crypto investment is likely linked to its new plan to offer digital asset custody to its clients. As Bitcoin…