Bright Risk Index

The Bright Risk Index (BRI) is a diversified basked of risk cover staking positions. This is enabled by making NXM staking positions permissionless and tradeable.

Description

We created the Bright risk Index which will help the market for decentralized insurances with: 1) Attracting more cover staking capital 2) higher risk/reward ratio 3) Inefficient capital structure For this we created two innovations: 1) dNXM token: A tokenized staking position of NXM. It serves as a wrapper for cover staking (a.k.a. taking insurance risk) operations at Nexus Mutual. The dNXM is a interest & risk baring token which isn't KYC'ed (lowering the bar for newcomers). It's transactable and tradable, allowing for a secondary market 2) Now Nexus Mutual are available in a secondary market (Uniswap pool) we created an index of multiple staking positions to create a diversified portfolio of risks. We didn't only add Nexus positions but also of other key players in the market: Cover Protocol & Bridge Mutual. The Bright Risk Index (BRI) brings a new level of diversified investment opportunity to the market of risk covers.

Bright Risk Index showcase

How it's made

Solidity: - the dNXMx token has a permissionless nature and everyone can create one for the existing protocol which is present on Nexus. A dedicated dNXMTokenFactory.sol was created which takes care of instantiating and updating (TransparentUpgradeableProxy) the existing dNXM tokens - each token has stake(), callWithdrawal() and withdrawal() methods available for holders. ‘Stake’ takes care the depositing to Nexus (into the corresponding protocol), ‘callWithdrawal’ takes care of cool down period on Nexus, ‘withdraw’ releases the funds and returns them (with rewards) to the holder - all the tokens were listed on Uniswap. Later, Uniswap V3 will be used to take the advantage of concentrated liquidity feature Integrations: - Nexus PooledStaking is used by dNXMx implementation - Set protocol is used to combine (now tradable) staking positions. dXNM (Nexus) + NO_CLAIM (Cover protocol) + bmiXCover (Bridge Mutual) sort of tokens combined - Auto rebalancing will be enabled later on (Uniswap v3) + DAO-managed weights changing (Snapshot) - The Index token (Bright Risk Index) is listed on Uniswap and allows users to take position easily UI: VueJS + web3 Tooling: Truffle, ganache-cli

Technologies used

EthereumNexus MutualSolidityUniswap