D1Conf 2018 | A Decentralised Mutual for the Ethereum Community | Hugh Karp, Nexus Mutual

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A previous company promised guaranteed returns but mismanaged funds, hiding issues for 10 years until members lost money. Nexus Mutual aims to create a decentralized insurance carrier using smart contracts for transparency. It will launch in Q1 2019, allowing members to vote on claims and stake tokens to show confidence in smart contracts, with pricing adjusted based on funds required versus held to pay claims.

Technology

What happened?
3
Guaranteed Returns to members it
couldn’t meet.
Customers
trusted the
company with
their money and
it was
mismanaged.

Used dubious accounting to hide the
issue, hoping to trade out.
Probably traded while insolvent for
around 10 years.
Members lost money.


Problem
4
Agency:
Having to trust someone
else with your money.
Transparency:
Understanding the real
financial position.
Trust code instead,
smart contracts
determine the rules.
Real time financial
position, open to
everyone.
Regulation
Rules, law, approved
persons, compliance,
capital methodology,
reporting standards.

Decentralised Risk Carrier
5
Insurance
Company
Customers / Members
Shareholders
Today’s
Mutuals

Smart Contract Cover Initial product for the Ethereum community
Fellow members vote on the validity of claims.
6
Coindesk research indicates "potentially
buggy smart contracts" are the most
negative aspect of Ethereum today.

Pricing Market based mechanism
7
Base Algorithm: How “battle-tested” is it?
Price
Time on main-net
Staking: Members can stake tokens against smart
contracts they deem secure.

NXM Token Model Manages capital efficiency
%
8
Price is driven by
funds required to
pay claims vs
funds held.

Legally linked DAO
9
Set up as a discretionary mutual in the UK.
Nexus Mutual Ltd
Exists exclusively for the benefit of members.

11
• Decentralised risk carrier.
• Market based pricing mechanism.
• Legally linked DAO.
• Bonding curve for capital efficient token
model.
• Completely new product.
Decentralisation
is real. All of this
will be launching
in Q1 2019.

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Dennis | Yamato is a serial entrepreneur with a track record of success. He is the founder of a profitable ecommerce platform which he sold in 2013. Since entering the blockchain space, he has co-founded two mining businesses which are still operational today. He is an early adopter of blockchain tech and has several years experience as an investor and trader of cryptocurrencies. Dennis | Yamato has a degree in Business Management and is a Certified Blockchain Expert.

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April 4-Day 2 of the 2019 Fintech & Financing Conference in Toronto at the Bram and Bluma Appel Salon in downtown Toronto. Alan Wunsche, CEO, Tokenfunder talks about the potential for Stablecoins like the DAI, a hot trend in digital assets and crypto markets, to disrupt the central banks. As technology advances and companies jockey for position, there's one thing for sure, there's never a dull moment in the world of decentralized finance. Links https://www.tokenfunder.com/ https://fintechandfunding.com/ https://ncfacanada.org/

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The Depository Trust and Clearing Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities. DTCC’s subsidiary, the Depository Trust Company (“DTC”) was created to improve efficiencies and reduce risk in the clearance and settlement of securities transactions. Not all securities are eligible to be settled through DTC. DTC Eligibility has become an often unexpected burden for companies in going public transactions.

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Smart Contracts in Financial Services: Getting from Hype to Reality. Executive Summary The potential of smart contracts – programmable contracts that automatically execute when pre-defi ned conditions are met – is the subject of much debate and discussion in the fi nancial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, ineffi ciencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the fi nance system and reducing risk, create overhead costs for and increase compliance requirements. In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with fi nancial services industry professionals, prominent smart contract startups, and academics (see Research Methodology at the end of this paper). Our study confi rms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more effi cient business processes across all major segments of the fi nancial services industry. These benefi ts will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of fi rms to share a common view of the contract between trading parties. Consumers will benefi t from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.

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