Should we give BootNode a grant to begin development on the ERC-4626 compliant covered vault project?

The BootNode team has requested a grant of 50,000 USDC and 1,450 wNXM to begin the next phase of the covered vaults project.

The next phase involves is the development of the design for an ERC-4626 compliant vault that takes an existing ERC-4626 compliant vault (e.g. Yearn) and purchases Nexus Mutual coverage on behalf of all users, with coverage effectively being paid from the yield. A bundled yield-bearing plus covered vault.

Project Description

To minimize technical implementation risks for this project, BootNode has proposed a step-by-step delivery approach including the following stages.

The current proposal will focus only on Phase 2 and Phase 3: Development and testing of the complete smart-contract solution.

Phase 1: Scope definition & project planning | Complete Phase 2: Iterative development Phase 3: User acceptance & transition

Motivation

1. Purchasing and managing coverage on an ongoing basis can be cumbersome due to the need to roll-over and/or change coverage amounts.
2. Gas for cover purchases effectively means it’s not economically viable for smaller users.
3. Bundled products have much higher take-up rates due to the reduced user friction.

Goals

• Implement the designed solution.
• Write documentation.
• Test the solution. *Collaborate with Nexus Mutual on deployment tasks.

Deliverables

1. Open Source repository with all the code, scripts and documentation needed for deployment and configuration of new Nexus Covered Vaults.
2. Test code.

Timeline

The estimated timeline for this project would be 8 and 11 weeks of work.

Grant Request

The grant for this phase would be paid in two installments:

• 25,000 USDC as soon as the proposal is approved
• 25,000 USDC once the deliverables are presented for review
• 1,450 wNXM to be paid once the deliverables are presented for review

Members can review the full text of the proposal on the forum: https://forum.nexusmutual.io/t/nexus-covered-vaults-development-phase/926/1