Welcome to the newest installment of What's Covered, our monthly overview of DeFi yields, industry trends, and the latest activities within the Nexus Mutual portfolio.
The month of October brought an unprecedented wave of cryptocurrency losses across the space, leading to a highly active period for Nexus Mutual. Throughout the month, 50 distinct security incidents resulted in a total of $6.5B in stolen funds. A massive portion of this total, amounting to a record $6.36B, was extracted directly from the hot wallets at Binance. As centralized exchanges increasingly become the primary focus for malicious actors, the necessity of holding Custody Cover is more evident than ever.
Protection volume saw a healthy increase, with our members acquiring $65.3M in cover compared to the $60.1M registered during September. Exactly one quarter of this monthly volume was generated through @OpenCover Covered Vaults. In addition, the ecosystem expanded its Vault Cover options by welcoming the WETH and sUSDe ARMs from @OriginProtocol.
Looking at the broader market, both yields and the leverage supporting them demonstrated notable strength. The USDC rate on the Ethereum market of @aave climbed from 3.3% up to 4.2%, while the corresponding rate on @base experienced a significant jump to reach 6.7%. Over on the Base market for @Morpho, borrowing against bitcoin shattered previous records by surpassing $1.6B. This environment of narrow carry margins combined with escalating leverage provides the exact scenario that Leveraged Liquidation Cover was designed to address.
You can explore the comprehensive October release of What's Covered just below.
The month of October brought an unprecedented wave of cryptocurrency losses across the space, leading to a highly active period for Nexus Mutual. Throughout the month, 50 distinct security incidents resulted in a total of $6.5B in stolen funds. A massive portion of this total, amounting to a record $6.36B, was extracted directly from the hot wallets at Binance. As centralized exchanges increasingly become the primary focus for malicious actors, the necessity of holding Custody Cover is more evident than ever.
Protection volume saw a healthy increase, with our members acquiring $65.3M in cover compared to the $60.1M registered during September. Exactly one quarter of this monthly volume was generated through @OpenCover Covered Vaults. In addition, the ecosystem expanded its Vault Cover options by welcoming the WETH and sUSDe ARMs from @OriginProtocol.
Looking at the broader market, both yields and the leverage supporting them demonstrated notable strength. The USDC rate on the Ethereum market of @aave climbed from 3.3% up to 4.2%, while the corresponding rate on @base experienced a significant jump to reach 6.7%. Over on the Base market for @Morpho, borrowing against bitcoin shattered previous records by surpassing $1.6B. This environment of narrow carry margins combined with escalating leverage provides the exact scenario that Leveraged Liquidation Cover was designed to address.
You can explore the comprehensive October release of What's Covered just below.
