Read on Twitter
$wNXM staking is going live on @ArmorFi tomorrow. The previous round of wNXM staking with SAFE led to a huge increase in price for the @NexusMutual project token.
This time is different, however, and price may explode higher -- and even remain high.
This time is different, however, and price may explode higher -- and even remain high.
At the time of SAFE, NXM was trading at a much higher price relative to the Nexus book value - the amount of ETH its capital pool holds to ensure it can provide cover. Right now, NXM is only trading at ~50% higher than book value, versus the ~300% it was trading at the time.
(As a side note, I consider it a complete market failure that an already working, successful project with little competition is trading at just a little higher than its on-chain, proven cash reserves)
Unlike SAFE, which was nothing more than a staking game, @ArmorFi has useful plans for the staked wNXM: it will leverage them as intended through Nexus, utilized to provide insurance for smart contracts - but *without having to go through Nexus KYC.*
Another benefit is that stakers no longer have to figure out which contracts are safer than others, leaving that work for the ArmorFi governance and project leads, who are themselves working directly with Nexus.
On the Nexus side of this opportunity,
Nexus is supplying more real smart contract cover than ever before, producing an ongoing revenue stream that goes directly to $NXM holders.
Nexus is supplying more real smart contract cover than ever before, producing an ongoing revenue stream that goes directly to $NXM holders.
Several recent governance changes and UI updates have streamlined both the staking and insurance process. As well, a new community fund just voted in is expanding the reach of Nexus in terms of influencers, marketing, and business development.
In my opinion, even without the upcoming @ArmorFi staking bonanza, $wNXM/$NXM are a steal at this price.
With the ArmorFi KYC-less frontend plus Armor's own staking reward program, I foresee a short term price boost -- one that, this time, may stick around, as this is an actual DeFi collaboration, an innovation in the space that creates value for other projects as well as for users.
Addendum: It's my impression that most of the other "blue chips" in the space have fulfilled their immediate potential and will settle around current prices for some time to come. Smart money is looking for undervalued opportunities at the right entry price, and this may be it.
