Nexus Mutual Will Transfer $29 Million In Treasury Funds To Maple Finance

The DeFi insurer’s capital pool has been approved by the Nexus Mutual DAO for the allocation of 15,348 ether (ETH), roughly $29 million at the time of writing.

Nexus Mutual Will Transfer $29 Million In Treasury Funds To Maple Finance

Details from the voting website show that practically all voters approved with the vote’s outcome. However, the DAO’s level of engagement fell short of the necessary quorum. The vote has to be approved by the advisory board of Nexus Mutual as a result.

The proposal to invest 10% of the Nexus Mutual Treasury in Maple Finance in order to gain yield served as the basis for the vote. Since its founding in May 2019, Maple Finance, a DeFi lender, has made crypto loans totaling more than $1.5 billion. This money will be invested by Nexus Mutual in the Maple Maven 11 Capital wrapped ETH (WETH) pool. One of the pool delegates on Maple Finance is the digital asset company Maven 11.

This investment will allow Nexus Mutual to receive a yield on its ETH holdings

Nexus Mutual Will Transfer $29 Million In Treasury Funds To Maple Finance

Only 20% of the ether in its capital pool, according to the proposal document, is producing income for the DeFi insurance. This 20% is derived from staked ETH holdings owned by Nexus Mutual.

On the ether tokens it lends to Maple Finance via the Maven 11 WETH pool, Nexus Mutual will get up to a 9% yearly dividend. The 4% profit from the ETH lending alone will be offset by the 5% gain from MPL rewards from token lending on Maple. MPL is the native token of Maple.

The idea is that Nexus might benefit financially from the MPL incentives. Selling the MPL awards would be one method to achieve this and guarantee returns remain at a minimum of 9%. As an alternative, Nexus can stake the MPL to obtain staked MPL (xMPL), which can provide the DeFi insurer with additional yield.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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