Deal Will Protect Hodlnaut Users As Crypto Becomes Bigger Target For Hackers
Hodlnaut Pledges US $1 million to protect supported assets BTC, DAI, ETH, USDC and USDT at a 2.6% Premium
[New York, New York, March 18th @10am ET) — Hodlnaut, a platform that provides financial services for individual investors where they earn interest on their cryptocurrencies by lending it to corporate borrowers today announced a new partnership with Nexus Mutual.
With this new partnership, Hodlnaut users can now be covered for up to US $28 Million of their funds through Nexus Mutual’s Hodlnaut Custody Cover smart contract. In addition to insurance coverage, Hodlnaut has pledged a pool of NXM tokens to reward early stakers of this smart contract.
The custody cover will protect Hodlnaut users in the event that the platform gets hacked and the user loses more than 10% of deposited funds or if withdrawals are stuck for more than 90 days. At the time of writing, there have already been some NXM mutual members that have chosen to stake on these custodians so there is cover available.
Hodlnaut’s committed equity of about $1 Million has been split into two main avenues on Nexus Mutual, namely, staking on the Hodlnaut Custody Cover smart contract and running a shield mining campaign.
● Hodlnaut utilized a portion of its equity to purchase NXM tokens. By purchasing NXM tokens, Hodlnaut has contributed to a large capital pool which is used to underwrite the smart contract and custody cover. Hodlnaut supplies a significant amount of capital by staking its NXM holdings on the Hodlnaut Custody Cover product, thus creating significant capacity for users to purchase cover for up to US $28 Million of funds at a 2.6% premium.
● In addition, Hodlnaut has sponsored $110k of the equity towards a shield mining campaign on Nexus Mutual. Users who stake their NXM on the Hodlnaut Custody Cover smart contract will be eligible to claim rewards in NXM tokens from Hodlnaut’s shield mining campaign weekly. This therefore encourages and incentivizes more Nexus Mutual members who assess the trustworthiness of its products and decide to stake their capital on Hodlnaut, increasing the pool of NXM tokens staked, creating capacity, and therefore reducing the insurance premium further.
“The experience and security of our users are our top priorities at Hodlnaut,” said Juntao Zhu, Co-Founder and CEO. “We’re all excited to be working with Nexus as the crypto community continues to go more mainstream and invite additional threats, we’ll now have some of the best protection on the market while our users earn interest.”
Nexus started out focused on providing protection against risk and potential bugs in the smart contract code of decentralized finance (DeFi) projects. Recently, the startup announced it was extending its community-based offering to cover users for hacks and losses incurred at centralized exchanges like Coinbase, Binance, Kraken and Gemini.
“This partnership is another demonstration of how open financial products on Ethereum provide the building blocks for amazing customer experiences. Hodlnaut users will have an easy way to protect themselves while Nexus Mutual members will benefit from increased distribution,” said Hugh Karp, Founder of Nexus Mutual.
For more information, please visit hodlnaut.com.
About Hodlnaut
Hodlnaut is a platform that provides financial services for individual investors where they earn interest on their cryptocurrencies by lending it to margin traders. Founded in April 2019 by self-proclaimed bitcoin maximalists Juntao Zhu and Simon Lee, the company has a mission to help hodlers get the most out of their crypto assets. Hodlnaut offers up to 8.3% APY to individual investors with a Hodlnaut Interest Account that supports BTC, ETH, DAI, USDC, and USDT.
About Nexus Mutual
Nexus Mutual is an open platform on Ethereum that allows members to pool and share risk through a discretionary mutual – a community-owned insurance alternative. Only members can participate in the network, buy cover, and hold NXM (the platform’s native token). But anyone can become a member by paying a nominal fee in ETH. The mutual is fully member-owned, and members are entitled to a share of any capital held in excess of what’s necessary to pay potential claims.
