Just wanted to share a thread to compile info about the @CreamdotFinance loss event in one place.

Thank you to all the teams working to help affected users, mitigate losses, and track the attacker.

#DeFi is unified in these moments.
🧵👇 The attack: what happened?

Some say it's price manipulation by abusing oracle implementation.

Others say it's an economic attack that bypassed any protections by using flashloans + atomic swaps.

I'll wait for the @CreamdotFinance post-mortem.

Some takes
👇

Because @DeFi_Dad asks the best questions:

Here are some of the key differences between Protocol Cover and Yield Token Cover on @NexusMutual
(1/6) Protocol Cover protects deposits within a protocol's smart contract system against:

* Smart contract hacks and bugs
* Oracle attacks
* Severe economic attacks
* Governance attacks

Assets deposited in a protocol are covered no matter what chain/L2 deployed on.
(2/6)

If a mutual member’s funds are lost due to an event outlined in the cover agreement, they can file a claim.

Any cover purchased after 21 October 2021 requires proof of loss when filing a claim. (1/9) As I mentioned in the tweet below, 10% of your cover premium is reserved for filing a claim. You need to stake 5% of the cover premium to file a claim.

Because 10% is reserved for filing a claim, you can submit a claim for assessment 2 times. (2/9)

https://twitter.com/BraveDeFi/status/1380218072439652353

Happy Thursday, everyone!

Here are today’s @NexusMutual helpful threads!

I'm going with information about buying cover through the Mutual 🐢 When a member wants to purchase cover, they can choose cover for any of the 68 protocols’ smart contracts & 10 custodians: app.nexusmutual.io/cover

A member would click “Buy Cover” to get to the interface where the protocol or custodian is selected. (1/6)

The mutual’s capital pool is held in ETH. Below you can see a graphic that shows how funds flow through the capital pool when cover is purchased. (1/7) Funds flow into the capital pool when cover is purchased & when ETH is swapped for $NXM.

When capital levels in the pool are low, the price of $NXM lowers to encourage token purchases, which add funds to the capital pool. (2/7)

The bonding curve determines the price of $NXM using a formula with multiple inputs. In the graphic, I have included the fixed constants. Because the capital pool is held in ETH, the bonding curve uses MCReth as a factor in the equation. (1/9) The graphic in the previous tweet is from the latest post Nexus put up on their Medium about the bonding curve. More on that here: (medium.com/nexus-mutual/o…)

If you see this equation and feel your mind going blank, don’t worry: I’ve got you. (2/9)

Here are today’s @NexusMutual helpful threads! Membership in Nexus Mutual is represented by the $NXM token.

The $NXM token is the key that unlocks Nexus Mutual’s potential. (1/8)

In order to buy cover through Nexus Mutual, you need to be a member. It’s an easy process.

You need to pay a membership fee of 0.002ETH and undergo a KYC/AML check.

You can read the details here: app.nexusmutual.io/membership (1/5) There are many benefits for mutual members.

You can buy cover products and protect your assets in DeFi.

Members run the mutual. They are responsible for Risk Assessment, Claims Assessment, and Governance. (2/5)

A lot of people think @NexusMutual sells insurance, and as I covered in my first thread, that isn’t quite accurate.

The mutual offers cover products: smart contract cover and custody cover.

Nexus Mutual members can buy cover to protect deposited assets. (1/9) Smart contact cover gives members protection against losses due to hacks/exploits and/or smart contract code being used in an unintended way. Wording here: nexusmutual.io/pages/SmartCon… (2/9)

As of Tuesday (4/6), all of DeFi has $52.14B in TVL. @NexusMutual has $341.1M in TVL.

That leaves most users exposed to potential loss from compromised code. Nexus Mutual was created to solve this problem.

Members of the mutual protect cover holders from getting #rekt. (1/6) Nexus Mutual is a discretionary mutual, which means the mutual does not offer traditional insurance; instead, the mutual offers cover products.

A discretionary mutual model gives members the ability to purchase cover that offers discretionary risk protection to members. (2/6)