The mutual is using Chainlink Proof of Reserve to track, verify, and report the price per share of interest-bearing tokens held in its Enzyme vault, which represents its deposit in lending protocol Maple Finance.

Without Chainlink Proof of Reserve, its recent investment of 15,348 ETH into the Maven 11 lending pool on Maple Finance would not have been possible.

Accessing Yield Through Maple Finance via Enzyme

Nexus Mutual is a member-driven community where anyone can join and share risks with others. Instead of relying on a centralized insurance company, users and projects can protect themselves against smart contract and technical risks, custodial risk, and validator slashing risk.

Its members own the capital pool, which holds the assets the mutual uses to underwrite coverage. The capital pool grows when members buy cover, contribute ETH in exchange for NXM, and investment earnings accrue.

Through investment allocations, Nexus is maximizing its returns and preserving capital by investing within its established risk constraints. Diversifying its investment allocations and adhering to its risk constraints allows the Mutual to maintain sufficient liquidity to cover obligations and generate long-term growth.

Approved Proposal

Members have approved a proposal to allocate a portion of ETH in the capital pool to Maven 11’s wETH lending pool on Maple Finance. Nexus has converted 15,348 ETH to wETH and invested it into a pool managed by Maven 11, a blockchain and crypto asset investment firm.

Credit teams run lending businesses on Maple infrastructure and evaluate companies’ creditworthiness through traditional due diligence and credit checks, as a result, Maven 11 is able to issue uncollateralized loans that earn higher yields. Maple Finance’s institutional crypto-capital network has issued over $1.65B in loans to premier crypto companies throughout the industry.

Nexus Mutual is using the on-chain asset management solution Enzyme to deposit and manage these funds. Enzyme seamlessly connects dozens of protocols at the smart-contract level, which allows for swift, efficient deployment of funds across the DeFi ecosystem, so they can take advantage of attractive yields.

After the wETH was deposited into Maven 11’s lending pool, the mutual received 15,348 Nexus Mutual Treasury Yield (NXMTY) shares that represent the Maple pool tokens held in our Enzyme vault.

Enzyme’s transparent infrastructure plays a crucial role. It enables Nexus Mutual to verify and track its deposits using Chainlink Proof of Reserve. This creates new opportunities for the mutual to increase investment allocations within DeFi.

Verifying On-Chain Assets With Chainlink Proof of Reserve

Nexus is using Chainlink Proof of Reserve to verify the amount of lending pool tokens in its Enzyme vault. This enables them to automatically track and report the value of its assets on Maple Finance. This allows them to maintain transparency. It also enables any user to independently verify the value of the assets we hold in its Enzyme vault.

Chainlink Proof of Reserves provides proof of collateralization of on-chain or cross-chain assets. It compares the asset’s current supply to the reserves backing it. Verifying the deposits they hold on Maple Finance helps support a diversified capital management strategy and transparent governance process.

“As a decentralized insurance alternative that helps Web3 projects mitigate their financial risks by providing smart contract cover, it’s essential that we minimize our own risk using highly secure, decentralized infrastructure. By integrating Chainlink Proof of Reserve, we’re able to verify our deposits held on Maple Finance in real-time, helping give our users high confidence in the capital reserves that underpin our protocol.” —Hugh Karp, Founder of Nexus Mutual

“We’re pleased that Nexus Mutual is using Chainlink Proof of Reserve to help automatically verify the assets deposited on Maple Finance. Definitive on-chain proof of the Pool Tokens held by Nexus Protocol helps underpin transparent capital management and governance processes.”— Tomasz Wojewoda, Head of Global Sales at Chainlink Labs.

ABOUT Chainlink

Chainlink is the industry standard for building, accessing, and selling oracle services. Needed to power hybrid smart contracts on any blockchain.

Website | Twitter

ABOUT NEXUS Mutual

Nexus Mutual is a decentralized insurance alternative built on the Ethereum blockchain. The mutual was created to give people a way to hedge against the unique risks in on-chain markets. Nexus Mutual is the leading provider of crypto-native coverage. Its members protect more than $252.6m in productive assets and have paid out $8.4m in claims to date.

Website | Twitter

ABOUT Maple Finance

Maple is an institutional crypto-capital network bringing the trillion-dollar capital markets on-chain. Maple provides the infrastructure for credit experts to efficiently manage and scale crypto lending businesses. Connect capital from institutional and individual lenders to innovative, blue-chip companies.

Website | Twitter

About Enzyme

Enzyme is a DeFi operating system designed for the next generation of asset managers, DAOs, treasury managers, and investors. Enzyme connects with dozens of DeFi protocols at the smart-contract level. Meaning asset managers can build composable strategies that harness the full power of DeFi. Its goal is to decentralize traditional asset management and lower barriers to entry, thereby opening access to more global consumers.

Website | Twitter

RESOURCES

Medium

REQUEST AN ARTICLE

The post Nexus Mutual Utilizes Chainlink Proof-of-Reserve appeared first on Smart Liquidity Research.

Maple is officially launched on Solana and has begun to address financing needs within the ecosystem. With their launch partner X-Margin, and lenders Circle, Coinshares, and Solana natives, they bring $40M in liquidity to the ecosystem at launch and plan to grow this pool to $300M by EOY.

Sidney Powell, CEO, and Co-Founder of Maple

“Building the first multi-chain capital market solution has and will continue to attract high quality lenders and borrowers, create unprecedented growth opportunities for innovators building on Solana, and enable the entire industry to thrive.”

On its launch in Solana today, Maple is the first multi-chain capital solution, and they are also the first institutionally focused platform to offer uncollateralized borrowing on Solana. With key partners, X-Margin, Circle, and Coinshare, this is a key milestone in transforming capital markets through technology.

Individuals and institutions can deposit Solana USDC into the pool directly via the Maple Solana WebApp. Requests to borrow can be made here.

X-Margin is the first firm to act as a pool delegate and launch a lending business on Maple Solana.

Darshan Vaidya, CEO of X-Margin

“Maple’s multi-chain infrastructure continues to lead the way for institutional credit infrastructure in crypto. X-Margin’s privacy preserving credit platform is a natural fit for this, helping to scale a more data-driven and transparent credit market in DeFi and CeFi.”

To bring traditional capital markets on-chain, Maple has built with institutions to ensure the same rules and regulations apply in DeFi. For instance, all borrowers must pass KYC-AML checks and credit assessments across the protocol, so institutional lenders can be sure capital is issued to reputable firms.

Jeremy Fox-Geen, Chief Financial Officer, Circle

“Circle deposited $10M Solana USDC to fund the future of the Solana ecosystem. Solana USDC already has extensive adoption with FTX, Serum, Raydium, and now Maple is bringing new utility to Solana USDC, as well as a new primitive to the ecosystem. We are proud to deepen our partnership with Maple and the Solana ecosystem at large.”

After passing X-Margin’s rigorous due diligence process, profitable and growing crypto blue-chips, Nascent, Framework, and Alameda Research comprise the first cohort of uncollateralized borrowers.

Josh Felker, Co-Founder, Nascent

“Borrowing uncollateralized means we can optimize operating capital for our liquid strategies. We’ve been really impressed with X-Margin and Maple’s process and the teams bringing Maple Solana to market, and we’re proud to be the beneficiaries of this exciting launch.”

With exciting projects being built on Solana, Maple chose to join the ecosystem at its genesis and has built quickly through the acquisition of Avari, a Solana native undercollateralized lending protocol, in January.

Maple moved with speed and diligence to reconfigure the intelligent contracts, maintain parity across Solidity and Rust codebases, and conduct two audits with Bramah Systems and Quantstamp.

Maple’s goal is to: bring Maple’s on-chain capital-market infrastructure to scale the Solana ecosystem.

Quinn Barry, Head of Maple Solana

“Over the next three months, we expect to bring over $300 million of liquidity to Solana. We will soon welcome another credit-expert to the platform, and share more details on how liquidity protocols are already using Maple’s infrastructure as a launchpad onto Solana. From a product perspective, we will bring the product to parity over the course of the year and make plans for the SYRUP token”.

Along with launching separate Solana contracts, there will also be a different governance token for Maple Solana, SYRUP, analogous to MPL on Ethereum. More about SYRUP tokenomics in a medium post here, and they plan to launch SYRUP in three to six months.

Lenders can deposit into the pool directly via the Maple Solana WebApp; requests to borrow can be made here.

About Maple

Maple is a crypto-capital network operating across the Ethereum and Solana blockchains. Maple facilitates efficient credit flows by providing the technology for credit experts to build lending businesses.

Website ♦ Twitter 

⏩ SOURCE

The post Maple Officially Launched on Solana appeared first on Smart Liquidity Research.