London, United Kingdom, July 17th, 2026, Chainwire
ether.fi, the leading onchain neobank for digital asset management, has selected Nexus Mutual to provide crypto’s largest-ever ETH Slashing Cover. The cover protects ether.fi‘s validators against up to 15,000 ETH worth of slashing penalties.
As ether.fi continues to see rapid adoption from both retail and institutional audiences, securing industry-leading protection against slashing risk for ether.fi users is critical. Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems.
Since ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for them. By working with Nexus Mutual, ether.fi has mitigated this with protection that kicks in to secure against validator losses. This cover was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
“We’ve always believed the safest protocols will ultimately win. That’s why we’ve invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality,” said Mike Silagadze, Founder & CEO of ether.fi.
“We’ve known the ether.fi team since before it was ether.fi, and they’ve been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we’re proud they chose Nexus Mutual to take it with them,” said Hugh Karp, Founder of Nexus Mutual.
About ether.fi
ether.fi is the leading onchain neobank for digital asset management. With $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives), ether.fi has established category dominance in crypto neobanking. It’s the rare institutional-grade product built for consumer adoption.
About Nexus Mutual
Nexus Mutual is the first crypto insurance alternative. Since 2019, they have covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks. As the industry leader, they have become a trusted partner for everyone from individuals to institutions to help manage onchain risk.
Contact Head of Marketing
Phil Johnston
Nexus Mutual [email protected]
ether.fi, the leading onchain neobank for digital asset management, has selected Nexus Mutual to provide crypto’s largest-ever ETH Slashing Cover.
The cover protects ether.fi‘s validators against up to 15,000 ETH worth of slashing penalties.
As ether.fi continues to see rapid adoption from both retail and institutional audiences, securing industry-leading protection against slashing risk for ether.fi users is critical. Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems.
Since ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for them. By working with Nexus Mutual, ether.fi has mitigated this with protection that kicks in to secure against validator losses. This cover was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
“We’ve always believed the safest protocols will ultimately win. That’s why we’ve invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality,” said Mike Silagadze, Founder & CEO of ether.fi.“We’ve known the ether.fi team since before it was ether.fi, and they’ve been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we’re proud they chose Nexus Mutual to take it with them,” said Hugh Karp, Founder of Nexus Mutual.
About ether.fi
ether.fi is the leading onchain neobank for digital asset management. With $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives), ether.fi has established category dominance in crypto neobanking. It’s the rare institutional-grade product built for consumer adoption.
About Nexus Mutual
Nexus Mutual is the first crypto insurance alternative. Since 2019, they have covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks. As the industry leader, they have become a trusted partner for everyone from individuals to institutions to help manage onchain risk.
Contact Head of Marketing
Phil Johnston
Nexus Mutual
[email protected]
London, United Kingdom, 17th July 2026, ChainwireBy Chainwire
Jul 17, 2026
2 min read
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London, United Kingdom, July 17th, 2026, Chainwire
ether.fi, the leading onchain neobank for digital asset management, has selected Nexus Mutual to provide crypto’s largest-ever ETH Slashing Cover. The cover protects ether.fi's validators against up to 15,000 ETH worth of slashing penalties.
As ether.fi continues to see rapid adoption from both retail and institutional audiences, securing industry-leading protection against slashing risk for ether.fi users is critical. Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems.
Since ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for them. By working with Nexus Mutual, ether.fi has mitigated this with protection that kicks in to secure against validator losses. This cover was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
"We've always believed the safest protocols will ultimately win. That's why we've invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality," said Mike Silagadze, Founder & CEO of ether.fi.
"We've known the ether.fi team since before it was ether.fi, and they've been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we're proud they chose Nexus Mutual to take it with them," said Hugh Karp, Founder of Nexus Mutual.
About ether.fi
ether.fi is the leading onchain neobank for digital asset management. With $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives), ether.fi has established category dominance in crypto neobanking. It’s the rare institutional-grade product built for consumer adoption.
About Nexus Mutual
Nexus Mutual is the first crypto insurance alternative. Since 2019, they have covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks. As the industry leader, they have become a trusted partner for everyone from individuals to institutions to help manage onchain risk.
ContactHead of Marketing
Phil Johnston
Nexus Mutual [email protected]
Disclaimer: Press release sponsored by our commercial partners.
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London, United Kingdom, July 17th, 2026, Chainwire
ether.fi, the leading onchain neobank for digital asset management, has selected Nexus Mutual to provide crypto’s largest-ever ETH Slashing Cover. The cover protects ether.fi‘s validators against up to 15,000 ETH worth of slashing penalties.
As ether.fi continues to see rapid adoption from both retail and institutional audiences, securing industry-leading protection against slashing risk for ether.fi users is critical. Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems.
Since ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for them. By working with Nexus Mutual, ether.fi has mitigated this with protection that kicks in to secure against validator losses. This cover was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
“We’ve always believed the safest protocols will ultimately win. That’s why we’ve invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality,” said Mike Silagadze, Founder & CEO of ether.fi.
“We’ve known the ether.fi team since before it was ether.fi, and they’ve been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we’re proud they chose Nexus Mutual to take it with them,” said Hugh Karp, Founder of Nexus Mutual.
About ether.fi
ether.fi is the leading onchain neobank for digital asset management. With $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives), ether.fi has established category dominance in crypto neobanking. It’s the rare institutional-grade product built for consumer adoption.
About Nexus Mutual
Nexus Mutual is the first crypto insurance alternative. Since 2019, they have covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks. As the industry leader, they have become a trusted partner for everyone from individuals to institutions to help manage onchain risk.
[PRESS RELEASE – London, United Kingdom, July 17th, 2026]
ether.fi, the leading onchain neobank for digital asset management, has selected Nexus Mutual to provide crypto’s largest-ever ETH Slashing Cover. The cover protects ether.fi‘s validators against up to 15,000 ETH worth of slashing penalties.
As ether.fi continues to see rapid adoption from both retail and institutional audiences, securing industry-leading protection against slashing risk for ether.fi users is critical. Over the last year, ether.fi has been systematically strengthening their stack across infrastructure, risk management, operational security and real-time defense systems.
Since ether.fi operates one of the largest validator sets on Ethereum, slashing is a real tail risk for them. By working with Nexus Mutual, ether.fi has mitigated this with protection that kicks in to secure against validator losses. This cover was calculated to protect ether.fi in even the most extreme scenarios and represents more than all historical losses from ETH slashing combined.
“We’ve always believed the safest protocols will ultimately win. That’s why we’ve invested heavily in audits, operational security, staking architecture, and now the largest insurance program in the industry. We are excited to partner with Nexus Mutual to make this a reality,” said Mike Silagadze, Founder & CEO of ether.fi.
“We’ve known the ether.fi team since before it was ether.fi, and they’ve been focused on risk from day one. Covering their users for up to 15,000 ETH in slashing penalties is a historic step, and we’re proud they chose Nexus Mutual to take it with them,” said Hugh Karp, Founder of Nexus Mutual.
About ether.fi
ether.fi is the leading onchain neobank for digital asset management. With $6B+ in AUM across Cash (crypto card), Stake (restaking), and Liquid (liquid restaking derivatives), ether.fi has established category dominance in crypto neobanking. It’s the rare institutional-grade product built for consumer adoption.
About Nexus Mutual
Nexus Mutual is the first crypto insurance alternative. Since 2019, they have covered more than $7 billion against smart contract hacks, slashing, and other digital asset risks. As the industry leader, they have become a trusted partner for everyone from individuals to institutions to help manage onchain risk.
Bank of America: Semiconductors' strong performance drove growth funds to outperform the broader market, and active funds delivered strong results in June.
Bank of America released data showing that in June, 53% of large-cap active equity funds outperformed their benchmark indices. Mid-cap and small-cap active funds performed even more strongly, with 71% and 91% respectively beating their benchmarks. BofA noted that in the first half of 2026, growth-style funds overall outperformed value-style funds, boosted by the strong rally in semiconductor stocks, while value-style funds lagged relatively due to their lower allocation to semiconductor shares.
2 minutes ago
SK Hynix officially kicks off the roadshow process for its US stock market listing.
SK Hynix officially kicked off its roadshow for its US stock listing this Monday, aiming to capitalize on sustained investor enthusiasm for the memory chip sector to advance its US listing. According to regulatory filings, SK Hynix plans to offer American Depositary Receipts (ADRs) representing approximately 17.79 million common shares. Based on last Friday’s closing price in the South Korean market, the offering is valued at around $28 billion. As a leading supplier of High Bandwidth Memory (HBM) chips, SK Hynix’s US listing will open up an efficient financing channel for the company. Per previously disclosed regulatory documents, SK Hynix expects its ADRs to start trading on July 10 (this Friday). Based on the current proposed offering size, this ADR issuance will rank among the top three largest IPOs in history (the exact amount depends on exchange rates), and is expected to rival Saudi Aramco’s $29.4 billion IPO in 2019.
2 minutes ago
Tokenized fund USTB saw its deposit volume into Aave rise by around 300% quarter-on-quarter in Q2.
According to data from Token Terminal, the amount of Invesco’s tokenized U.S. Treasury fund USTB deposited on Aave rose roughly 300% quarter-over-quarter. Managed by Invesco and issued based on Superstate’s FundOS transfer agent and tokenization infrastructure, USTB demonstrates the ongoing deepening integration between real-world assets (RWA) and DeFi protocols.
2 minutes ago
Morgan Stanley and UBS Diverge on AI Investment Themes: The Former Is Bullish on Cloud Service Provider Rotation, While the Latter Bets on AI Infrastructure Revaluation
As internal rotation within the U.S. stock AI sector intensifies, Morgan Stanley and UBS have offered divergent views on the next phase of AI investment trends. Morgan Stanley believes capital is shifting from the previously sharply rallying semiconductor sector to large-scale cloud service providers such as Microsoft, Amazon, and Meta. The AI rally is not over; instead, it has entered a sector rotation phase. UBS, by contrast, is more optimistic about the long-term value creation capacity of AI infrastructure. Its Holt team projects that the profitability of memory chip firms including Samsung Electronics, SK Hynix, and Micron will continue to improve. The economic profit of the AI infrastructure sector is expected to surge from around $200 billion in 2023 to $1.4 trillion in 2027, a roughly 600% increase, while the economic profit of large cloud service providers is forecast to reach only around $400 billion over the same period. UBS contends that the memory chip industry is transitioning from a traditional cyclical sector to one of the most important value creators in the AI industrial chain.
2 minutes ago
BlackRock's address has cumulatively transferred over 22,600 BTC to Coinbase over the past six days.
According to monitoring by Onchain Lens, a BlackRock address recently transferred 2,265.685 BTC to Coinbase, valued at approximately $142.45 million. Over the past six days, BlackRock has cumulatively transferred 22,624.685 BTC to Coinbase, with a total value of around $1.42 billion.
2 minutes ago
ZachXBT: Never issued or promoted any meme coins; all proceeds from related tokens, totaling approximately $41,000, have been fully donated to charity.
On-chain detective ZachXBT has posted that over the past week, multiple unauthorized individuals have launched meme coins using his likeness across multiple public blockchains to capitalize on market hype. He stressed that he has never promoted or issued any meme coins, and has publicly stated he will not support or launch such projects. ZachXBT said all related tokens sent to his donation wallet have been sold on the market, and the roughly $41,000 in proceeds has been fully donated via The Giving Block to GiveDirectly and Direct Relief to support Venezuela earthquake relief efforts. The donations include 25,000 USDT to GiveDirectly and 5,000 USDT to Direct Relief on July 6, plus an earlier contribution of 153 SOL (worth approximately $11,000).
Upbit will add Metaplex (MPLX) for BTC and USDT pairs and Nexus (NEX) for a USDT pair on July 3. Metaplex assists in creating infrastructure for digital assets based on the Solana blockchain, and Nexus builds a Layer 1 blockchain. Upbit, South Korea’s largest cryptocurrency exchange platform, announced the listing of Metaplex (MPLX) and Nexus (NEX). MPLX will be available to trade with BTC and USDT trading pairs on the Solana blockchain platform. NEX will be listed in the USDT market on the Ethereum network. Deposits and withdrawals will start two hours from the time of the announcement.
Scheduled Launch of MPLX and NEX Upbit has announced that MPLX will begin trading at 3:00 PM local time on July 3. Trading for NEX will be launched by the exchange at 6:00 PM local time on July 3. The users have been asked to ensure that deposits happen only through the supported blockchain networks, as deposits made via unsupported networks will not be credited. Upbit has also mentioned that insufficient liquidity may lead to delayed trading due to unfavorable market conditions.
The platform implemented temporary trading restrictions to ensure smooth market operations after listing these two cryptocurrencies. Upbit has put a restriction on buying orders in the first five minutes after trading. All orders, except limit orders, will not be available for 2 hours after listing. Upbit has put a restriction on selling orders that are at least 10% below the previous close price.
Metaplex and Nexus Extend Their Infrastructure Services Metaplex is an infrastructure protocol for digital assets with NFT support, token minting, metadata handling, and mass asset creation in the Solana and Solana Virtual Machine blockchain networks. This protocol allows the standardization of metadata of the assets along with NFT collections, compressed NFTs, and token drops using various ecosystem services. Metaplex also unveiled Agent Registry and Agent Tokens, extending the infrastructure of Metaplex in the direction of on-chain identity registration and token creation. MPLX tokens allow participating in governance, managing treasuries, and certain ecosystem services in the Metaplex DAO.
Nexus builds a Layer 1 blockchain by incorporating verifiable computation capabilities with finance use cases. This network leverages Cosmos SDK, CometBFT, and Ethereum-based smart contracts together with Nexus zkVM for the verification of computing resources from outside the chain. Nexus is also going to extend its ecosystem via Nexus Exchange and the USDX settlement ecosystem. The NEX tokens act as the native gas tokens of the network while staking and compensating computation providers. Upbit also advised users that their deposits should be in compliance with the Travel Rule.
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Updated May 14, 2024, 5:24 p.m. Published May 14, 2024, 1:00 p.m.
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Karn Saroya, CEO of Re (Re)The new fund backs low-volatility insurances covering properties, trucking, aviation and workers compensation, excluding catastrophic risks at the start, Re CEO Karn Saroya said in an interview.Re targets to back $200 million in insurance premiums by the end of the year, with another $3 billion in the pipeline.The firm also raised $7 million in a venture capital investment round led by Electric Capital.Re, a real-world asset (RWA) platform specializing in offering tokenized reinsurance, said Tuesday it has opened its first open-ended reinsurance fund using the Avalanche {{AVAX}} network.
First investors of the fund include Nexus Mutual, a crypto insurance alternative provider, with a $15 million allocation and the RWA-focused Vista fund of Ava Labs, an ecosystem developer organization of Avalanche, with a smaller deposit.
The company also raised $7 million in venture capital in its latest fundraising round led by Electric Capital, following a $14 million seed round in late 2022.
Re, which is regulated in the Cayman Islands, focuses on introducing blockchain tech for a traditionally opaque, conservative industry and aims to be a decentralized version of Lloyd's of London, though of as the premier marketplace for insurance.
Reinsurance companies offer protection for insurance firms, collecting premiums to cover certain types of risks. With nearly $1 trillion in premiums annually, reinsurance is a cornerstone of today's financial markets and commerce, Karn Saroya, chief executive officer of Re said in an interview with CoinDesk.
"Reinsurance is the ocean, and insurance companies are the boats floating on the water,” he said.
Bringing these assets to blockchain rails can improve settlements, operational efficiency and create greater transparency of capital reserves, Saroya explained. This is in line with the red-hot tokenization trend, with digital asset firms and global financial institutions such as BlackRock, Citi and Franklin Templeton creating digital versions of old-school investments – often referred to as RWAs – to trade them on blockchains for operational benefits.
Read more: Why Asset Tokenization Is Inevitable
In the beginning, Re's new fund backs more conservative, low-volatility insurances such as property, trucking, aviation and workers compensation, excluding catastrophic risks, Karoya said.
The fund targets to offer up to 23% annualized yield to investors, and is accessible to U.S. accredited investors and any investors outside the U.S. who complete Re's know-your-customer (KYC) process. The minimum lock-up period for deposits is one year, and funds are available for redemptions as collateral is released from the insurance companies.
Investing in the fund is similar to high-yield fixed income, Saroya said, making it attractive to decentralized autonomous organizations (DAO) and ecosystem funds to deploy capital.
[PRESS RELEASE – London, United Kingdom, September 18th, 2024]
The collaboration sets a new standard in decentralized finance (DeFi) by shifting blockchain transaction risk away from end users for the first time.
OpenCover, a leading platform for blockchain insurance and insurance alternatives backed by Coinbase Venture’s Base Ecosystem Fund, NFX, Jump, Alliance, Village Global and Orange DAO is announcing a strategic partnership with Request Finance and Nexus Mutual. This collaboration marks a historic milestone in decentralized finance (DeFi), offering unparalleled protection for blockchain users across multiple blockchain ecosystems including Ethereum, Arbitrum, Polygon, BNB, Optimism and Avalanche.
For the first time, eligible transactions on Request Finance are covered up to $100,000. This protects end-users from the main technical, economic, and security risks inherent to blockchain transactions, making onchain finance safer and matching transaction guarantees on traditional financial infrastructure.
Traditionally, the “your keys, your coins” mantra placed the full burden of blockchain risk — such as oracle price feed errors, smart contract bugs and stablecoins losing their peg — directly on the end-user.
OpenCover’s new Transaction Cover, underwritten by Nexus Mutual, transfers the risk of failure or unforeseen blockchain transaction outcomes away from the end-user. Users now benefit from the same transaction guarantees typically seen in traditional finance but with the advantages of faster settlement times, full transparency, and significantly lower fees attained by using blockchain rails.
“For decentralized finance to become a credible extension to traditional finance, blockchain transactions need to be as safe as they are efficient,” said Jeremiah Smith, Co-Founder and CEO of OpenCover. “This unique partnership with Request Finance and Nexus Mutual sets a new standard, allowing blockchain users to fully embrace self-custody and onchain finance without the downside of transaction risk.”
This collaboration not only strengthens OpenCover’s mission to promote blockchain safety but also aligns with the wider movement toward mainstream blockchain adoption. By abstracting transaction risk from end-users, OpenCover, Request Finance, and Nexus Mutual are bringing blockchain payments to parity with the protections that have long been standard in traditional financial systems.
About OpenCover (https://opencover.com)
Founded by Y Combinator alumni Jeremiah Smith and Yury Oparin, OpenCover works with top-tier underwriters to provide individuals and institutions protection against onchain risks, including transaction and protocol risk.
About Request Finance (https://request.finance)
Request Finance is a comprehensive invoicing, payment, and accounting platform for Web2 and Web3 businesses. By simplifying payments in both crypto and fiat currencies, Request Finance is helping businesses embrace decentralized finance while ensuring transparency and efficiency. Request has processed over $800 million in transactions since 2020.
About Nexus Mutual (https://nexusmutual.io/)
Nexus Mutual is the leading crypto insurance alternative for protocol and other blockchain risks. The mutual has underwritten close to $5 billion in risk since being established in 2019.
From a speculative asset to a foundational element, Bitcoin ($BTC) continuously grows in terms of decentralized finance. This continuous evolution urges Babylon Labs and Nexus Mutual to join their efforts to safeguard billions of dollars in staked Bitcoin ($BTC). They aim to protect staked Bitcoin with a product that pioneers slashing protection. Bitcoin ($BTC) has now become a crucial part of financial systems worldwide. So, this alliance strives to provide crypto holders peace of mind, resilience, and trust while participating in staking.
Babylon Labs and Nexus to Reinforce Bitcoin ($BTC) Staking Security Babylon Bitcoin staking protocol holds billions of dollars to protect comparatively imperative assets. Nexus Mutual is renowned as a leader in crypto-based insurance alternatives. The platform now aims to create a bespoke slashing protection protocol. Babylon’s users can directly approach this product, so Babylon Labs plays a significant role in this process. The lab stays ahead in the development of the product, providing technical insights while facilitating connections with potential users.
Nexus Mutual was established in 2019, underwriting more than $5.5 billion in the coverage of digital assets. The platform offered $BTC-denominated insurance products at first. Its collaboration with Babylon Labs aims to strengthen the missions of both firms. Babylon Labs continues to unveil Bitcoin ($BTC) utility by providing secure staking solutions. On the other hand, Nexus Mutual leads in crypto-risk innovations.
The Partnership Provides Custom Coverage for a Decentralized Future Through this partnership, Nexus Mutual and Babylon aim to explore expanded Bitcoin Secured Networks (BSNs). This advancement enables customizable protection, improving liquidity and user confidence. Nexus Mutual’s coverage products strive to meet the demands, ranging from individuals staking their Bitcoins to institutions participating at scale.
The Head of Business Development at Babylon Labs, Clayton Menzel, states, “We’re excited about Nexus Mutual’s upcoming slashing protection product and what it could mean for Bitcoin stakers.” He further says, “This collaboration supports our mission of unlocking Bitcoin to secure the decentralized economy.”
The Founder of Nexus Mutual, Hugh Karp, emphasized the statement, stating, “Bitcoin is now a crucial part of the global financial system, and we’re excited to work with Babylon Labs to offer new ways to protect and leverage this digital asset.”
The alliance between Nexus Mutual and Babylon Labs is a significant step towards creating a more scalable and secure environment for Bitcoin staking. This environment will merge the reliability of insurance with decentralized capabilities.
AUTHOR
Crypto journalist with years of experience providing in-depth analysis and news on blockchain and decentralized finance. With a keen eye for detail, Shahzaib delivers insightful articles that explore the latest trends, market movements, and innovations within the crypto and blockchain ecosystem. His work focuses on educating readers while offering expert commentary on the evolving landscape of digital assets, DeFi protocols, and the broader impact of blockchain technology.
Nexus Mutual has transferred $250,000 to reimburse users caught in Arcadia Finance’s $3.5 million exploit, marking one of Base blockchain’s first major insurance settlements. The payout arrives as Arcadia’s own recovery plan remains weeks from implementation.
Summary
Nexus Mutual paid $250,000 to victims of Arcadia Finance’s $3.5 million hack, marking one of Base chain’s first major insurance settlements. The payout offers early restitution ahead of Arcadia’s own delayed recovery plan based on “Recovery Tokens.” On August 4, crypto insurance alternative Nexus Mutual announced it had paid out $250,000 to users impacted by the July 15 Arcadia Finance exploit on Base, where attackers drained $3.5 million in stablecoins through a contract vulnerability.
The smart contract bug allowed funds to be siphoned directly from user accounts, with stolen assets swiftly laundered into wrapped Ether. Nexus Mutual began processing claims in late July after a standard cooldown period, ultimately honoring coverage for eligible users who had purchased protection through OpenCover, a Base-native distributor.
A turning point for DeFi risk mitigation? The Arcadia Finance payout signals a deeper shift in the way decentralized finance is starting to confront its most systemic weakness: the lack of credible recourse when things go wrong. Nexus Mutual has now paid out over $18.2 million across 37 incidents since 2019, according to its public claims dashboard.
The Arcadia settlement joins a roster of landmark payouts including $5 million for the 2022 TribeDAO hack, $2.3 million for Euler Finance’s $197 million exploit, and nearly $5 million when FTX collapsed. These aren’t abstract numbers; they trace the evolution of crypto’s risk management infrastructure through its most chaotic years.
While smaller than other settlements, the Arcadia payout is symbolic. Its timing matters: this is one of the earliest high-profile insurance resolutions on Base, Coinbase’s Layer 2 chain, which has only recently started to see sustained DeFi activity. For affected users, the payout served as a crucial stopgap in the absence of protocol-native compensation, arriving before Arcadia itself was able to mobilize a full recovery plan.
Meanwhile, Arcadia Finance has charted a different course with its Recovery Token (RT) system, a complex mechanism where victims receive USDC-pegged tokens redeemable through staking, fee rebates, or secondary market sales.
Though innovative in its attempt to align incentives, the plan requires users to maintain long-term engagement with the protocol. Some may prefer Nexus Mutual’s straightforward ETH transfers, which impose no lockups or behavioral conditions.
Once the 14-day cooling-off period ended on July 29, users of Arcadia who had lost money began submitting claims. The reimbursement will not affect Nexus Mutual’s liquidity or its capacity to pay additional claims, according to Phil Johnston. Customers who had their funds stolen in the recent Arcadia Finance theft were reimbursed by Crypto-native insurance alternative Nexus Mutual.
An notification made public on Monday said that Nexus Mutual has paid out around $250,000 to customers who had their money stolen in the Arcadia Finance attack. A theft occurred in mid-July on the Base blockchain, stealing $3.5 million worth of stablecoins. The stolen assets were then exchanged for Wrapped Ether (WETH).
$250K Reimbursed via OpenCover Victims had their money stolen straight from their accounts. Once the 14-day cooling-off period ended on July 29, users of Arcadia who had lost money began submitting claims. So far, Nexus Mutual has reimbursed $250,000 via its relationship with OpenCover, a supplier of base-based coverage. “Zero risk does not exist offchain, nor will it exist onchain,” said OpenCover CEO Jeremiah Smith.
The reimbursement will not affect Nexus Mutual’s liquidity or its capacity to pay additional claims, according to Phil Johnston, director of marketing at the company. An active cover with over $100 million remains, he assured. Nexus Mutual allows its verification onchain and keeps its claims history accessible. Users have allegedly received claims payments totaling $18,256,181 since the service began in 2020.
Nexus Mutual claims that most legitimate claims are paid out within seven days, in contrast to conventional insurers that typically take months to settle claims, all because blockchain data is transparent and verifiable. Although custodial intermediary concerns are no longer an issue with DeFi, new vulnerabilities like as complicated smart contracts with large attack surfaces are introduced.
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Inside the Lloyd's of London insurance market. (Lloyd's of London)Summary
Капітал, виділений через Symbiotic, тепер може забезпечувати традиційні мережі з підтвердженням долі (PoS), одночасно страхуючи покриття Nexus.Партнерство вирішує структурний розрив у покритті ризиків DeFi: відсутність масштабованої та прозорої інфраструктури перестрахування.Децентралізований страхувальний протокол Nexus Mutual, інтегрувався з протоколом страхування та ефективності капіталу Symbiotic для створення шару перестрахування, що генерує дохід, з метою страхування ризиків децентралізованих фінансів.
Співпраця з Symbiotic запроваджує новий клас андеррайтингових сховищ, узгоджених із тривалістю покриття Nexus, що дозволяє здійснювати перерозподіл капіталу в режимі реального часу та швидке врегулювання претензій, повідомляється в пресрелізі у середу.
Капітал, розподілений через Symbiotic, тепер може забезпечувати традиційні мережі з підтвердженням ставки (PoS), одночасно підтримуючи страхове покриття Nexus, що допомагає масштабувати альтернативного провайдера страхового покриття без впровадження централізації чи неефективності, характерних для старих моделей, йдеться у релізі.
«Протягом багатьох років ринки ризиків на ланцюгу стикалися з проблемами масштабування через фрагментацію капіталу в ізольованих пулах», — сказав Міша Путятін, співзасновник Symbiotic. «Запроваджуючи композиційну інфраструктуру перестрахування, ми відкриваємо можливості масштабованих, бездозвільних ринків ризиків, де капітал нарешті може працювати на кількох рівнях екосистеми. Це не просто покращення ефективності, це те, що нарешті дасть змогу нам досягти масштабу»
Nexus Mutual прагне вирішити критичний дефіцит страхових потужностей у криптоіндустрії, дозволяючи учасникам вкладати активи у синдикати, подібно до того, як працює ринок Lloyd’s of London, за що вони отримують Токени NXM. Ці токени потім використовуються для покриття певних ризиків у обмін на прибутки, які, за словами засновника Nexus Mutual Г'ю Карпа, можуть сягати близько 25%.
Партнерство вирішує структурну проблему у покритті ризиків DeFi: відсутність масштабованої та прозорої інфраструктури перестрахування. Для Nexus Mutual це відкриває двері до додаткового попиту на андеррайтинг, що дозволяє протоколу розширювати покриття серед протоколів і класів активів без збільшення резервів.
«Оскільки інституційне впровадження DeFi продовжує зростати, інвестори все частіше звертаються до Nexus Mutual із проханням покривати ризики у ще більшому масштабі», — сказав Г’ю Карп, засновник Nexus Mutual. «Співпрацюючи з Symbiotic, ми забезпечуємо, щоб наші рішення з покриття на блокчейні відповідали потребам будь-якого інституційного інвестора чи протоколу.»
Updated Dec 11, 2025, 1:28 p.m. Published Nov 19, 2025, 6:32 a.m.
2 min read
Inside the Lloyd's of London insurance market. (Lloyd's of London)Summary
Capital allocated via Symbiotic can now secure traditional proof-of-stake (PoS) networks while simultaneously underwriting Nexus coverage.The partnership addresses a structural gap in DeFi risk coverage: the lack of scalable and transparent reinsurance infrastructure.Decentralized insurance protocol Nexus Mutual, has integrated with underwriting and capital efficiency protocol Symbiotic to create a yield-generating reinsurance layer to underwrite decentralized finance risks.
The collaboration with Symbiotic introduces a new class of underwriting vaults aligned with Nexus cover durations, enabling real-time capital reallocation and fast claim settlement, according to a press release on Wednesday.
Capital allocated via Symbiotic can now secure traditional proof-of-stake (PoS) networks while simultaneously underwriting Nexus coverage, helping scale the alternative insurance cover provider without introducing centralization or inefficiencies typical of legacy models, the release said.
“For years, onchain risk markets have struggled to scale because capital was fragmented across isolated pools,” said Misha Putiatin, co-founder of Symbiotic. “By introducing composable underwriting infrastructure, we’re unlocking scalable, permissionless risk markets where capital can finally work across multiple layers of the ecosystem. This isn’t just an improvement in efficiency, it's something that can finally get us to scale”
Nexus Mutual seeks to address the dire shortage of insurance capacity within the crypto industry by allowing members to deploy assets into syndicates, in a way similar to how the Lloyd’s of London market operates, for which they receive NXM tokens. These tokens are then used to back certain risks in return for yields which can reach around 25%, according to Nexus Mutual founder Hugh Karp.
The partnership addresses a structural gap in DeFi risk coverage: the lack of scalable and transparent reinsurance infrastructure. For Nexus Mutual, it opens doors to additional underwriting demand, allowing the protocol to expand coverage across protocols and asset classes without raising idle reserves.
“As there continues to be greater institutional adoption of DeFi, investors have been asking Nexus Mutual to cover risks at an even larger scale,” said Hugh Karp, Founder of Nexus Mutual. “By working with Symbiotic, we’re making sure our onchain cover solutions can fit the needs of any institutional investor or protocol.”
As institutions flood into DeFi, one protocol is selling something they all need: coverage.
The suits have arrived in crypto. In an interview with TheStreet Roundtable at the Digital Asset Summit in New York City, Nexus Mutual head of business development Ralf Turner noticed the shift firsthand.
For a protocol that's been building decentralized insurance since 2019, the real signal isn't the dress code. It's the demand.
Nexus Mutual operates as a decentralized finance (DeFi) insurance marketplace on the Ethereum blockchain.
How decentralized insurance worksCapital holders deposit Ethereum and other assets into the protocol, which mints them $NXM, the protocol's core token representing their share of a collective capital pool.
That pool then backs coverage for crypto-native risks like smart contract exploits and protocol hacks.
The protocol now counts around 10,000 members, from retail investors to institutional heavyweights.
One reason for that range is flexibility. Coverage doesn't have to be purchased in NXM. Buyers can pay in stablecoins, Ethereum, or Bitcoin.
"You don't run the fiat to crypto mispricing currency risk," Turner said. "You can actually just get it denominated in a primary core asset that you'd like it to be."
What separates Nexus Mutual from a traditional insurer is visibility. Capital adequacy, active coverage books, and leverage ratios are all publicly viewable on-chain.
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"It's all transparent on the blockchain," Turner said.
For institutional allocators used to opaque insurance markets, that's a meaningful upgrade.
More newsBitcoin, XRP surge on Trump's Iran U-turnLawmakers call to remove Trump after Iran warningSolana Policy Institute president says fight over stablecoin rules is about 'competition'A clear gap in crypto servicesAnd the need is real. Just a couple of weeks ago, Resolv's stablecoin USR suffered a significant exploit, sending the community into scramble mode.
"The community as a whole was scrambling to get reliable information, understand the impact," Turner said. "It's the kind of thing that we can really step in and help everyone out with."
In this case, attackers gained access to a private key, and were able to mint over 80 million USR tokens, causing the coin to depeg and fall to prices as low as $0.02.
Nexus Mutual has weathered its share of market chaos, from DeFi summer to the FTX bankruptcy and the Terra Luna collapse. Through all of it, the pitch to users has stayed the same.
"Buy Nexus Mutual Cover, you'll feel a lot better sleeping at night," Turner said.
PANews reported on May 27th that a16z crypto published an article on the X platform stating that not all tokenized assets truly and equally exist on-chain. Bonds are by far the largest class of tokenized assets, with a market capitalization of $15.2 billion, but only about 5% of this supply is used in DeFi. The situation is similar for precious metals: while they are on-chain, most are simply idle. Smaller categories are different. 84% of the supply of reinsurance tokens is deployed in DeFi, compared to 33% for private lending. This makes sense: these categories with the highest DeFi usage were built for DeFi from the beginning, for example, through protocols like Nexus Mutual and Maple Finance. Many practices now referred to as "tokenization" are actually closer to digitization: simply transferring records to the blockchain without unlocking any new functionality. This is important because one of the core value propositions of on-chain financial systems is composability.
Nexus Mutual (NXM); is a decentralized finance protocol based on the Ethereum network. Although Nexus Mutual has its own cryptocurrency, NXM, it is known that this can only be used within its own network. Users can obtain insurance through smart contracts using the network’s own cryptocurrency NXM and cover their losses against potential attacks or losses.
The decentralized finance sector has achieved incredible growth recently, but it also brings with it certain risks. Thanks to Nexus Mutual, the risk on smart contracts is distributed equally to everyone using it. The idea of Mutual, derived from the concept of partnership, quickly became popular in the cryptocurrency sector, and other cryptocurrency projects have also taken similar steps. Wrapped NXM Coin, on the other hand, is a cryptocurrency that users can use outside the Nexus Mutual platform.
While the governance token of the Nexus Mutual protocol, NXM, can only be used on this network, Wrapped NXM can be used on many networks. Users need to buy WNXM Coin or NXM Coin and hold a certain amount of NXM Coin to benefit from this insurance service in the DeFi sector.
Where to Buy WNXM Coin?WNXM Coin can be purchased using Binance, the world’s largest cryptocurrency exchange by trading volume. To buy WNXM Coin on Binance, you first need to send a certain USDT balance to the exchange. After sending the balance, WNXM/USDT trading pairs can be used for fast purchases due to high liquidity support.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
