Editor's Note: This article comes fromHot Wheels Community (ID: FHBT18), Author: Pepe, reproduced by Odaily with authorization.

Editor's Note: This article comes from

Hot Wheels Community (ID: FHBT18)

Hot Wheels Community (ID: FHBT18)

, Author: Pepe, reproduced by Odaily with authorization.

Hello everyone, I’m Pepe. Last year, Bitcoin went up every few days, and the copycats followed the declines but not the rises. As a result, the trend has completely changed this year. It’s the Bitters who oscillate back and forth. For performances, the popularity of the defi category has dropped a little, and it is the turn of the domestic public chain to perform on stage.

Also because of the brilliant performance of the copycat market, many players have also begun to pursue various track sectors. I think the current ones are layer2 two-layer network (focused on making up for the performance defects of Ethereum), DAO (decentralized self-organizing project) , storage (this ipfs delay is still unknown), Polkadot ecology, etc.

This is what we want to talk about today. The logic is actually very simple. Whether it is for the DeFi platform or the current various liquidity mining contracts, there are high risks behind how many times the annualized return Yes, hundreds of millions of dollars are locked in various contracts. Even if the team conducts a code review, it cannot ensure that future operations will be 100% free of loopholes, will not be hacked, or will not cause asset losses due to Ethereum contract defects.

Therefore, a plan for a rainy day is to add insurance and reserve a part of the funds. In the event of a loss, compensation can be made, at least partially compensated to the user, so as to minimize the damage caused by the black swan event to the assets.

However, this part does not seem to have too many targets, especially those with mature products. The only thing worth mentioning seems to be this Nxm (full name of the project: Nexus Mutual).

Nxm has only become popular in the community since last month. It has not been selected as a topic for its family, because it is more difficult for most people to buy, and it has not been listed (there were also small ones last month. This coin is listed, but it is difficult to judge the authenticity of the chips inside, and it is not very reliable).

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Basically, the only channel is the official website, which directly exchanges ether. The model is a bit like AMM such as uniswap. There is no order book, and the exchange is automatically converted according to the exchange price. But the problem is that the platform requires kyc and does not support Chinese people.

Later, the community made a wnxm, which mapped nxm 1:1 (the official did not admit it, but it can be exchanged one by one). This wnxm was first listed on uniswap. There is some price difference on the official website, and the gas transaction cost is still very high.

However, I also saw the news in the afternoon that Huobi has listed this wnxm, and the audience of this receiver will be much wider. Although this month has increased by nearly 7 times, many "fear of heights" feel anxious:

But as a person who can’t do anything, it’s still necessary to talk about this coin today, as Pepe, who took over the first place.

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Introduction to Nexus Mutual

Nxm I think a lot of translations in China are good—mutual aid insurance, each person invests a little money to form a fund pool, and whoever has a problem in the future will be compensated with a percentage from this pool, and if there is no problem, it will be treated as Spending a little money to eliminate disasters is actually the logic of insurance products in the real world.

And if we want to say that the biggest feature of this project may lie in its token economic model.

This nxm has no total amount, and it will not issue a few hundred million first like other projects. An insurance pool is formed.

The nxm you get has the following ways to play:

1. Buy and wait for the rise, just like participating in other uniswap projects.

2. Project parties or individuals can use nxm to insure.

3. Participate in governance. Whether the claim form can successfully obtain the amount of compensation needs to be decided by the vote of the holder.

4. Investors can also mortgage nxm to various insurance projects on the platform. If there is no problem with the project during the guarantee period, they can gradually share the insurance premium of this project as a staking income, but if the other party If there is a problem and the claim is successfully obtained, the tokens you pledged will be destroyed, and a certain proportion of the corresponding ether assets will be compensated by the project party.

The picture below is the staking page on the platform:

Now 3.8 million NXMs have been mortgaged, and the total interest obtained has increased to 11,000 NXMs. This part of the mortgage data increment has recently been in a skyrocketing mode.

Also, I have seen that basically the popular defi platforms are insured on it, and each insured also has a process of purchasing nxm, which is why our title says that it will be like a link in the insurance industry.

In addition, its insurance policy is guaranteed for a period of time, ranging from several months, and needs to be repurchased when it expires. Take a look at the current large insurance policies worth tens of thousands of dollars:

curve, 1inch, snx, yfi are all listed.

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The secret of a 7-fold increase within a month

Now that we understand the basic situation, let’s talk about the most important price model. I read a lot of introductions, and the writing is very good, but when it comes to the price, it’s a formula that has been brought over. It may affect the sudden wealth. Haha, open a joke.

From the above introduction, I don’t know if you have noticed that the pricing of nxm seems to be different from other coins. First of all, it does not have a buy and sell order. In addition, it is a bit different from uniswap. The final pricing power is the same as that displayed on the official website. exchange price.

Here the real-time price of his home is calculated by a formula:

It seems very complicated, but you will understand it once you wear it. First of all, the TP on the left side of the formula is the exchange price with eth. Whether 1nxm can be exchanged for 0.01 eth or 0.1 eth is determined by the right side of the formula.

On the right side, A and C are constants, don’t worry about it, the rest is the ratio of MCR and MCR% which mainly determines the price.

This MCR, the minimum capital demand value of the network, can be understood as the minimum value of the expected compensation funds for each policy on the current platform. If the number of policies in the network is increasing, this value will also increase.

MCR% is the ratio of the total fund pool (the total amount of ether deposited in exchange for nxm) to MCR, like now:

MCR is 98278eth, and MCR% is 170.23%, indicating that the total assets are higher than the insured amount, and the platform has sufficient compensation capability.

In the long run, the exchange rate is determined by (MCR/C), and C is a constant, that is, determined by the number of insurance policies on the platform. This is also true. The more insurance policies, the better the business, which corresponds to the growth of the currency price and market value.

However, in the short term, it will be more subject to the influence of the 4th power of the MCR% index, and because this is a power index, if the short-term charging of eth to the platform increases, and they are not used to buy insurance policies, it will lead to price changes. A rapid growth, according to an overseas statement, once the MCR% exceeds 130%, it will increase the speed of price growth, which is why you can see it often skyrocketing.

Of course, it will not increase for no reason. Behind this algorithm change, it is still due to the fact that some bigwigs have invested more eth into it. For example, the following ones have 600 eth in one go, and there are many more these days:

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At the first few dollars, everyone was scared because it doubled in a short period of time, but if the MCR% is still growing, even at the current price, the possibility of continuing to climb is very high.

The picture below is the picture of overseas milk king, for reference only:

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epilogue