Join Nexus Mutual's Shield Mining Program

Simple Summary

Join Nexus Mutual's shield mining program to bootstrap a Premia coverage pool.

Proposal

This proposal is for the Premia community to express their desire to have Premia join Nexus Mutual's shield mining program. This program incentivizes Nexus Mutual stakers (aka risk assessors) to stake their NXM in Premia's risk pool which then allows Premia users to take out cover for their funds deposited into Premia. This cover protects the user from a number of scenario's that would cause a loss of funds such as exploits and smart contract failure.

Due to the increased risk of newly launched protocols it is often difficult to get Nexus Mutual risk assessors to stake their capital in these risk pools. Shield mining was created as a way for protocols to provide additional incentivizes to risk assessors to compensate the additional risk they are taking on. These incentives attract risk assessor capital and helps to more quickly bootstrap the risk pool. The way Nexus cover pricing works is the more NXM that is staked in a pool the cheaper it is for users to take out cover with the cheapest possible premium being 2.6% annually.

The details of Premia's shield mining program is purposefully omitted from this proposal to allow the Premia team to work with Nexus Mutual to decide what is the most optimal emissions rate, emissions duration, etc.

About Nexus Mutual

• Nexus Mutual's FAQ https://nexusmutual.gitbook.io/docs/welcome/faq
• More information on Nexus Mutual shield mining https://medium.com/nexus-mutual/shield-mining-is-here-85067a30ab06
• Nexus Mutual's Discord https://t.co/vttFaczvOJ?amp=1

Motivation

Given the many risks that exist in DeFi, this proposal would give users the option to take out cover for the funds they have deposited in the platform. This proposal also signals to the community that Premia is focused on securing and protecting users funds.

Clarification

Vote For/In Support of: Premia joining Nexus Mutual's shield mining program

Vote Against/In Opposition of: Not joining Nexus Mutual's shield mining program