Read on Twitter
Comparing @NexusMutual and @CoverProtocol and also, NEXUS insuring BlockFi & Celcius? @CelsiusNetwork 
I think I know why
Both are great #DeFi insurance projects! But I think one of them (Nexus) is raising concern in its business model when going for CeFi clients
1/13
I think I know why
Both are great #DeFi insurance projects! But I think one of them (Nexus) is raising concern in its business model when going for CeFi clients
1/13
First of all, I want to emphasize the differences:
- Joining Nexus requires KYC procedure while Cover doesn’t;
- Cover lets you estimate, buy or sell the risk of occurrence or non-occurrence of the claimable incidents;
2/
- Joining Nexus requires KYC procedure while Cover doesn’t;
- Cover lets you estimate, buy or sell the risk of occurrence or non-occurrence of the claimable incidents;
2/
- In @CoverProtocol the cover pays out in $DAI stablecoin while in @NexusMutual the whole economy is built on $NXM (native token). This difference makes the @CoverProtocol business model more interesting from the coverage seeker’s point of view.
More: https://bit.ly/2JLJUv0
3/
More: https://bit.ly/2JLJUv0
3/
Our fund is invested in both tokens
. Happy with both investments (see charts below).
Especially with the recent $COVER, showing multiples (let's not forget $NXM was also as high as 70 and is now around 20 but long term - both
). We're always long term. both are great
4/13
. Happy with both investments (see charts below). Especially with the recent $COVER, showing multiples (let's not forget $NXM was also as high as 70 and is now around 20 but long term - both
). We're always long term. both are great4/13
Insurance is a *VERY* necessary building block if we want the whole #DeFi space to mature and eventually (r)evelutionize the current financial system.
COVER feels more native to the #DeFi world compared to Nexus with KYC (but that is not the real problem)...
5/13
COVER feels more native to the #DeFi world compared to Nexus with KYC (but that is not the real problem)...
5/13
The real problem for Nexus may be that it started covering centralized custodian services of @CelsiusNetwork, @BlockFi, etc.
Those’re CeFi projects, not #DeFi!
https://bit.ly/37VHEsO
6/
Those’re CeFi projects, not #DeFi!
https://bit.ly/37VHEsO
6/
I think it may be a strategic mistake. As we know, there are no smart contracts in CeFi to audit, so what would Nexus be covering?
how can stakers audit? it looks more like betting
7/
how can stakers audit? it looks more like betting 7/
CeFi Custodians will not disclose their internal operations, technology, and security architecture. It's their IP, their security so basically staking on those in Nexus is staking on black box
8/
8/
Moreover, we see Proof-of-Concept in DeFi and we all know that the future is DeFi replacing the traditional financial system and centralized services that have to trust intermediaries
9/
9/
Why would a #DeFi protocol or a decentralized insurance company try to cover centralized services
Maybe to be more appealing for the incoming institutional interest? still, I think it's wrong. The institutions, if they are interested in crypto or DeFi, we need to...
10/13
Maybe to be more appealing for the incoming institutional interest? still, I think it's wrong. The institutions, if they are interested in crypto or DeFi, we need to...
10/13
... we need to educate them towards the new open financial system built on blockchain where you have to check, audit and trust the code, consensus, and open software.
11/
11/
I think it’s a mistake, and that centralized services like @CelsiusNetwork and @BlockFi should rather move towards #decentralization and open source. And it will happen. It's inevitable.
BTW, I was recently introduced to @BlockFi team and they are great!
sending my love
12/
BTW, I was recently introduced to @BlockFi team and they are great!
sending my love
12/
Maybe that is the game here? @NexusMutual? Onboarding them now (those big and fat "clients"), cos eventually they will evolve, convert and play the DeFi game?
It may be their business model and it’s totally legit, but I think it’s a strategic dilemma for @NexusMutual. Of course, I might be wrong, but this is just my opinion & I'm sharing. if you still read this, hopefully, it was useful.
