The Admiral: Keeping watch over the DeFi insurance seas
The DeFi insurance seas don’t stand still for a second. The Admiral is a new, regular bulletin from iTrust, created to help you navigate them.
C.R.E.A.M vs Badger DAO — A tale of two exploits
On 27 October, 2021, at 13:54 UTC, the C.R.E.A.M. Ethereum v1 markets were exploited and liquidity was removed. The attacker was able to remove approximately $130m USD. The official post mortem provided by the CREAM protocol team is found here:
Nexus Mutual began accepting claims 72 hours later from customers who had purchased cover against C.R.E.A.M v1. Proving once again that decentralised cover is a vital part of the DeFi ecosystem, the resulting payouts saved Mutual members like @Kareim30184380 from what could have been very serious losses:
iTrust ensures app stakers aren’t impacted by Nexus token burn
Payouts to Nexus Mutual policy holders who were victims of the C.R.E.A.M. hack of course necessitated a burn of some of the tokens staked in Nexus Mutual.
Thanks to the Risk Analysis Processes which we use to determine the ‘lower risk contracts’ staked against by our Strategy Vault, iTrust.finance users who stake their $NXM or $wNXM in that vault were not impacted by the token burn in any way.
Furthermore, the iTrust team decided on this occasion to negate any impact that would have been felt by stakers in our INDEX vault, by donating the $NXM needed to negate the burn — meaning no iTrust.finance stakers were impacted in any way by the Nexus burn necessitated by the C.R.E.A.M payout!
You can read more on this here:
If you have $NXM or $wNXM burning a hole in your wallet, put it to work by staking it at app.itrust.finance. As well as benefiting from our simple 2 step staking process and automatic reward accrual, you’ll earn:
- Nexus Rewards
- Shield Mining Rewards (where applicable)
- Bonus $ITG rewards
Badger DAO exploit — the importance of wallet hygiene
The dust is yet to settle on an incident in which an estimated $120m has been drained from the wallets of Badger DAO users.
Investigations are still ongoing, but initial reports suggest that hackers added a malicious script to the Badger DAO website coding which intercepted user transactions, asking them to unknowingly allow the attacker to withdraw funds from their wallets.
Here, Nexus Mutual Founder Hugh Karp, explains why front-end attacks, which the Badger DAO exploit appears to be, can’t generally be covered by providers:
What we can all learn from the Badger DAO hack is the importance of wallet hygiene. Here’s a handy article on how you can protect yourself from the kind of damage that appears to have been inflicted on some Badger users by this type of exploit:
Alpha of the week:
Check out this Protected Yield Opportunity discovered by @BraveDefi allowing you to turn productive $OHM into protected $OHM at a cost of just 1.05%!
Vital Statistics:
@richardchen39 provided some food for thought with his analysis of Nexus Mutual Revenue in November:
Do you agree with his thesis that the data supports increased adoption of DeFi insurance by institutions?
Looking to get involved in DeFi? Contribute to the iTrust DAO and earn bounties of up to $1000 per month.
In this pilot scheme, we are looking for TWO Ship Captains to spread the iTrust name far and wide across the DeFi seas, in return for a generous bounty! Do you have what it takes to be a Ship Captain? Apply Here.
You can read more about the Ship Captains scheme here:
Keep an eye out across all of our channels for all the latest iTrust news!
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