Announcing Cover on Alpaca Finance Through Nexus Mutual

This post was originally published on Alpaca Finance

Dear alpacas,

We’re happy to announce that security at Alpaca Finance is going up yet another level due to the availability of protocol coverage! Alpaca will become one of a handful of top BSC protocols covered by Nexus Mutual, a premium DeFi coverage provider.

Users will now have the option of purchasing cover for their funds deployed in any Alpaca product, including lending, farming, the Grazing Range, and staking.

🙋🏽How you can benefit from this partnership

You can take advantage of this partnership in two ways:

  • Buy Cover: Users who have capital deployed on Alpaca Finance can buy coverage for a potential loss of funds.
  • Provide Cover: If you believe that Alpaca’s code is safe, you can earn income by providing cover for buyers through staking NXM tokens and receiving the coverage premium as yield. You can stake in up to 20 pools at once (using the same NXM tokens) including Alpaca so it is very capital efficient.

The features are live so you can head over to Nexus Mutual now to buy or provide cover! (Do note that to buy or provide cover, you have to do so on the Ethereum Mainnet. However, the coverage applies to your funds within Alpaca Finance on BSC, and in fact — all blockchains Alpaca will be on in the future)

🔒Shield Mining

Starting now, users will be able to stake $NXM to provide cover for Alpaca Finance (as well as 19 other protocols to get their rewards as well) and receive USD $35k rewards in ETH over a period of one month.


Stake here

☔What situations are covered?

In general, Nexus cover protects against loss of funds (i.e. loss of tokens), but not loss of value (a token’s price dropping). The coverage includes funds deployed in all sections of Alpaca Finance, so whether you’re lending, farming, grazing, or staking — you’ll be covered!

Risks Covered

  • Smart contract risk
  • Code being used in an unintended way
  • Economic design failure
  • Severe oracle failure
  • Governance Attacks
  • Protection for assets on Layer 2 solutions
  • Protection for non-Ethereum smart contracts
  • Protection for a protocol across multiple chains

Risks NOT Covered

  • Bad debt
  • Liquidations
  • Any other form of defaults
  • Centralization risk such as “rug pulls”

For full coverage details, please refer to this document.

❓How do I buy cover?

First, you must become a Nexus member by paying a small membership fee of 0.0020 ETH (~$5.54):

Then, once you’re a member, you can purchase cover within the application interface using a Metamask account (on the Ethereum Mainnet).

Purchasing cover involved only three easy steps:

  1. Press “Get quote” for Alpaca Finance on the Buy cover page
  2. Specify the Cover Amount, Currency(ETH or DAI) and Cover Period
  3. Generate a quote and execute the transaction using Metamask

You are now covered!

You can pay for cover using ETH, DAI or NXM. If paying in ETH or DAI, the system will convert the funds to NXM in the background, then immediately use that NXM to purchase cover.

To reiterate, Nexus Mutual currently only operates on the Ethereum Mainnet. You must switch your wallet to Ethereum Mainnet first before interacting with the protocol. However, the coverage you purchase will be applicable for BSC as well as all other chains that Alpaca Finance will operate on in the future.

🛂How do I file a claim?

If you lost funds, owned cover at the time, and believe the circumstances of the loss fall under Nexus Mutual’s coverage policy, you can submit a claim, which will then go through the Nexus Mutual’s Claims Assessment process.

Members who stake NXM and choose to act as Claims Assessors can participate in reviewing, discussing, and voting on claims. Members acting as Claims Assessors are incentivized to act honestly, and are deterred from voting fraudulently. If it is determined that a member voted fraudulently in the claims process, the Advisory Board has the power to burn the malicious Claims Assessor’s staked NXM as punishment.

To file a claim, you can go to The instructions on how to file a claim can also be found here.

Even though we at Alpaca Finance take pride in having one of the cleanest track records and most thorough multi-layered security processes on BSC, we never stop working to improve. Now, with this partnership, we’ve added yet another layer of security to our protocol, hoping it’ll bring even greater peace of mind to our Herd, giving any alpaca the ability to further manage their risks, and farm peacefully.

(Note: This article is a snapshot of information at publishing date and details on coverage may be subject to change. Alpaca does not administer or manage this coverage, and is not responsible for it. For the final say on the terms and conditions of coverage, please make sure to check with Nexus Mutual directly)

About Nexus Mutual

After launching in 2019, Nexus has protected billions of dollars of assets against smart contract risk, exchange hacks and other crypto-specific risks. With a proven claims process, largest capital pool in DeFi insurance, and continuous product improvements, Nexus Mutual is the leading risk protocol for crypto and beyond.

To learn more about Nexus Mutual, you can visit their official communication channels:







Announcing Cover on Alpaca Finance Through Nexus Mutual was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

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