Nexus Mutual: growth and competition in decentralized insurance

For a detailed overview of how Nexus Mutual works and how the NXM token is used to incentivize capital provision, see Matteo Leibowitz’s overview.

The total value locked in decentralized finance has grown from $1.03 to $2.29 billion in the past month. In 2020 alone, there have been ten attacks that led to users losing funds from smart contracts. Rapid growth, combined with lingering security issues for users, has placed an emphasis on the need for reliable insurance products in decentralized finance.