Wrapped NXM is a cryptocurrency launched by Nexus Mutual, a blockchain project based on Ethereum. WNXM, based on the NXM cryptocurrency. It allows NXM to be freely bought and sold outside of Nexus Mutual. So, what is Nexus Mutual and its cryptocurrencies, NXM and WNXM? You can find the answers to all these questions in this article on Zatrun.com.
What is Nexus Mutual and How Does It Work?
Nexus Mutual is a decentralised insurance solution built on the Ethereum blockchain. The platform aims to provide insurance services to everyone within its network by creating a risk-sharing pool. Currently, all network participants are members of Nexus Mutual. These members can buy insurance to protect themselves from smart contract code attacks. Thus, they are minimally affected by security issues faced by blockchain-based applications. When such a problem occurs, the system compensates the affected user.
Initially, Nexus Mutual launched only one product: Smart Contract Cover. The aim of this insurance was to give the Ethereum community the ability to protect against hackers in smart contracts. However, the platform has continued to evolve since then. They now offer more standard products such as earthquake risk insurance. Additionally, they use a “risk-sharing pool” that allows everyone to buy coverage or contribute to the pool for future rewards. In the future, insurance services for cryptocurrency wallets will also be integrated into the platform.
Nexus Mutual was designed to replace a traditional insurance company managed by a central authority. According to this model, the platform is entirely managed in a decentralised way by its members. Users can have tokens representing their membership, and they receive economic incentives for risk assessment, demand assessment, and participation in governance.
In the insurance ecosystem, valuations are simplified when members do not need to prove they suffered financial losses when making claims. When a claim is proposed, the remaining members of the fund vote to approve or reject it. The benefits of participating in the ecosystem’s governance include buying smart policy insurance, contributing to investment funds, and NXM token staking. Additionally, all members of investment funds can share risks with each other.
What is NXM Token?
NXM coin is the native cryptocurrency of the Nexus Mutual platform. With this cryptocurrency, users can prove their membership in the investment fund. In other words, the token represents membership. Additionally, users can participate in governance by holding tokens. With the asset, they can purchase various blockchain-based insurance services. Furthermore, the asset makes it easier for users to evaluate demand and analyse risk in funds through methods such as staking.
The cryptocurrency operates on a mathematical model called the “bonding curve.” This model optimizes the relationship between the supply and price of NXM. Despite these features, NXM has an architecture that can only be bought and sold on the Nexus Mutual platform. Therefore, all incentives, staking, and returns on investment funds are limited to the platform. However, the ecosystem has taken a step to solve this problem and introduced Wrapped NXM (WNXM).
What is Wrapped NXM (WNXM)? Is It a Good Investment?
NXM is the native cryptocurrency of Nexus Mutual, which is an ERC-20 token that can only be bought and sold on the network. This asset is used to buy collateral, vote in governance decisions, and participate in risk assessment processes. How can you transfer your Wrapped NXM (WNXM) allowing you to transfer your NXM out and trade it. However, the price of the asset moves at a different level than the original token. With Wrapped NXM that you receive in exchange for your NXM, you can trade your cryptocurrencies.
Wrapped NXM (WNXM) can currently be purchased on major cryptocurrency exchanges such as Binance, BingX, OKX, and Bitrue. By buying the asset, you can invest in the Nexus Mutual ecosystem without joining the project. Currently, the cryptocurrency is mostly traded against the USDT pair. Therefore, to buy the asset, you must first convert your fiat currency into USDT.
Currently the 345th largest asset in the cryptocurrency market, Wrapped NXM (WNXM) has a market capitalization of $67.2 million. Additionally, the token has a trading volume of around $10.1 million in the last 24 hours. 2.89 million tokens, which correspond to the maximum supply of the asset, are in circulation.
Wrapped NXM reached its all-time high in May 2022 when the price of many assets dropped. At that time, a WNXM was close to $120. However, the asset is currently trading at a low price of $15.97. Since the price of Wrapped NXM is linked to the NXM price, investors should keep an eye on developments related to the Nexus Mutual platform.
