Nexus Mutual is known as one of the DeFi-focused cryptocurrency projects that made a significant impact in 2020. NXM Coin, an Ethereum-based crypto project, aims to completely eliminate the need for insurance through joint liquidity pools. This Ethereum-based project allows everyone to share risks collectively, distributing risk evenly and taking precautions against potential malicious entities.
Only members can join the network and purchase NXM, the platform’s own cryptocurrency, holding it to share risk. The term “mutual” in the project’s name signifies this partnership. In the event of an attack on the network, the NXM Coins held by investors are uniformly affected, thus ensuring the network’s security.
Nexus Mutual launched in May 2019 and, two months later, released its first product, Smart Contract Cover, an insurance for smart contracts. This protects investors from potential financial losses and errors in smart contracts. Recently, a $15 million loss occurred due to a smart contract error in the Eminence DeFi project, which NXM Coin aims to prevent.
Users can use this not only for NXM Token but also for other cryptocurrencies, requiring only that the relevant smart contract be verified on Etherscan. Insurance payouts against potential attacks or smart contract errors are made in NXM. However, user payments for insurance can be made in ETH, DAI, or NXM.
NXM Token undoubtedly comes to the rescue of DeFi investors with its insurance services. Many DeFi projects have recently suffered from scams or smart contract errors due to developer mistakes. The absence of traditional insurance for DeFi applications leaves investors vulnerable.
However, purchasing NXM Coin and obtaining DeFi insurance through it can definitely bridge this gap. As the DeFi sector progresses, it is predicted that NXM Coin will continue to attract new investors.
To buy NXM Coin, using the Binance cryptocurrency exchange is sufficient.
So, what needs to be done to purchase NXM Coin? NXM Coin can be bought and sold through Binance, and users need to follow the steps below: