Nexus Mutual to invest $29 million of treasury funds into Maple Finance

Quick Take

  • Nexus Mutual will deposit $29 million in ETH from its treasury into Maple Finance.
  • The loan will see the DeFi insurer earn an annual yield of at least 9%.

The Nexus Mutual DAO has voted in favor of allocating 15,348 ether (ETH), which currently amounts to $29 million, from the DeFi insurer’s capital pool to earn yield on Maple Finance.

According to details from the voting page, the vote ended with almost unanimous approval from voters. The level of participation from the DAO was however not enough to reach the required quorum. As such, the Nexus Mutual advisory board’s decision was required to pass the vote.

The vote was based on a proposal to invest 10% of the Nexus Mutual treasury into Maple Finance to earn yield. Maple Finance is a DeFi lender that has issued over $1.5 billion worth of crypto loans since its inception in May 2019. Nexus Mutual will deploy this capital into the Maven 11 Capital wrapped ETH (WETH) pool on Maple. Maven 11 is a digital asset firm and is one of the pool delegates on Maple Finance.

The reason for this investment is to enable Nexus Mutual to earn yield on its ETH holdings. According to the proposal document, only 20% of the ether in its capital pool is earning interest for the DeFi insurer. This 20% comes from Nexus Mutual’s staked ETH holdings.