Dor Konforty Profile picture
I care about facilitating collaborative architectures in networks between and within humans.
15 Sep
@NexusMutual's recent change to the mechanism determining MCR%, and therefore NXM token price, will lead to a runoff decrease in MCR% and decrease in token price due to the $SAFE effect. Read on >>
Until today, MCR% increased by 1% per day as long as the Capital Pool had enough funds. This provided a steady increase in available cover, whereupon every 1ETH extra in MCR floor translated into 10ETH of more cover ready to be utilized. >>
Thanks to $SAFE and its "incentivized insurance farming" (yeesh), every last drop of cover was snatched to stake in $SAFE pools. This triggered the new MCR determining mechanism to take over, one that relies on a simpler formula: cover taken divided by a "gearing factor". >>
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