Today, we continue part 2 of the economics of insurance. This episode is a deep dive into Nexus Mutual, $NXM. I’m not saying that DeFi is all about bonding curve……. but I’m 100% going to talk about bonding curve.
**Note: This bonding curve is DIFFERENT from the AMM bonding curve!
Watch the previous video if you have not done because this is part 2.
This episode, we cover the general workings of Nexus Mutual and how they used token to align incentives of the various agents: risk assessors, claim assessors and insurance cover buyers.
More importantly, we also dive into the math of Nexus Mutual and answer the questions about the monetary policy of $NXM. The why and how things are affected in the curve.
In general, we follow the economics design framework, looking at Market Design, Mechanism Design and Token Design aspects of the token. Enjoy!
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