Tutorial: How to get smart contract insurance for your staked funds

Currently, there are over 200M TVL in those smart contracts (link), but despite that, the project’s smart contracts not audited. We have been lucky so far that nothing has gone wrong, yet.

And while I have full trust in Andre Cronje’s abilities as an engineer to execute and build a secure system, one can never be 100% certain - I personally am on the more conservative side of the degen spectrum. Smart contract audits are standard practice for the DeFi ecosystem but they, however, take time and resources to be completed (from 3 weeks to 2 months).

One of the doubled-edged aspects of open source infrastructure, the fact that anyone can look at the code and either secure it or hack it. The beauty of crypto :sparkles:

“Anything that can go wrong will go wrong” - Murphys Law

Until then, what now?

One solution is to get insurance cover for your staked funds in yearn so that in the case of any smart contract vulnerability, you are protected.

Smart contract insurance

Nexus Mutual is a DAO that provides smart contract insurance. It promises payouts in the case of any lost funds for when certain smart contracts are compromised or get hacked. It’s essentially one big pool of funds that make money via the premiums it charges. Earlier this year in feburary, it paid out its first set of covers for the bZx flash fuckening hack and now covers about $9.2 Million dollars of other DeFi holdings ranging from Curve, Compound, Aave, Ampleforth etc.

Learn more: https://nexusmutual.gitbook.io/docs/use-cases

Here are the steps for you to get your own cover:

Step 1:

Input: 0x9D25057e62939D3408406975aD75Ffe834DA4cDd

Input the amount of funds you have staked in yearn

Enter the amount of time you want insurance cover for

Get your quote! And pay in $DAI.

Ez pz. You are now secured.

There are already about 22 stakers insuring the yearn smart contracts with 33,000 NXM

image

If anyone has any questions hit up the $NXM degens chat on telegram: https://t.me/nxm_degen

8 Likes

I would if the transaction fee wasn’t $150 for a reasonable time

1 Like

Yeah fair, we need more liquidity for smart contract coverage. Defs a bottleneck with both capacity and also the pricing of the coverage at the moment.

1 Like

Can you fix the telegram link to degens chat? :broken_heart:

4 Likes

Sorry, done! https://t.me/nxm_degen

3 Likes

Got myself some, thanks for the tip - super cool :slight_smile:

1 Like

yEarn is an ecosystem of many contracts. I am not sure if this coverage will cover everything.

1 Like

Good point, added the most staked contracts, UX sucks on this one… agreed.

2 Likes

Actually @YieldBouncer turns out, this one contract covers one system https://twitter.com/HughKarp/status/1285319746368483328

4 Likes

Now, that is a slick deal!

2 Likes

Does nxm allow customized contract? who is in control of the contract? Finally, CHINA is blocked on nexus mutual.