After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces.
After much deliberation and careful thought Neptune Mutual decided to close the cover marketplaces. Below the reasons for the decision as well as what it means for the community.
The marketplaces will be closed using an emergency withdrawal process whereby the liquidity provided to cover pools by LPs will be returned to the wallet addresses from which the liquidity was supplied. In addition to protecting cover pool LPs, there will also be refunds to all cover policy purchasers with an existing and valid policy who have paid over 10 USD in policy fees in one transaction.
For veNPM holders, please fill out this form to receive a refund for your veNPM to NPM conversion penalty.
From the end of June there will no longer be NPM emission incentives for LPs i.e. Epoch 3 of the liquidity gauge emissions will be canceled.
Unused funds raised from financial backers will be returned to those backers; this includes DEX liquidity that has now been removed from SushiSwap and Uniswap. A small amount of liquidity on SushiSwap Arbitrum has been left to enable a minimum amount of NPM trading.
The protocol will be open sourced, and become a true public good. Enabling the community to fork the code developed by the Neptune Mutual team such that others might use the existing resources to further our mission to make the blockchain space better protected against smart contracts and other risks.
There are numerous factors that have led to this difficult decision, some of which are external factors which are uncontrollable or unforeseeable. A few factors summarized below:
“Given Neptune Mutual’s Tier 1 backers, why have you not listed on a top CEX?”
This is perhaps one of the most frequently asked questions. In short, the answer is that for a variety of reasons Neptune Mutual was not able to achieve the diverse set of performance metrics (community size and engagement, marketplace user activity, DEX 24 hour trading volume, TVL growth etc.) required to list on top tier CEX. The CEXs that are prepared to list NPM token do not have the depth of liquidity or breadth of user-base to offer good prospects for NPM tokenholders.
“Why has Neptune Mutual not achieved strong growth?”
It is tempting to take a shortcut to answer this question by pointing a finger at one specific factor, but the reality is that there are many contributing factors. A few summarized below:
Since the outset of engaging with the community we have endeavored to highlight the need for DeFiInsurance; Neptune Mutual built a comprehensive dataset of on-chain hacks available, anywhere, and each week we highlight the many millions of dollars that are stolen as a result of smart contract hacks. Despite this, we have consistently been confronted by projects unwilling to spin up cover pools in our marketplace because of the sentiment that audits of their code are sufficient to persuade their community that their protocol is safe. Less than 0.3% of all digital assets are protected with some form of DeFiInsurance, and yet despite all the media reports of hacks, the conference discussions about the importance of governance or CEX proof-of-reserves, it continues to be the case that it is extremely difficult to get media attention to focus on the need for a fast and efficient means of mitigating smart contract risk.
A variety of approaches have been taken by different DeFiInsurance protocols to address this, from attending multiple conferences throughout the year and significant marketing spend, to the leaner approach that Neptune Mutual took (in part as a result of the bear market in 2023). What can be said is that no DeFiInsurance protocol has managed to achieve significant growth over the last 18 months, sadly the overall TVL of the sector has shrunk a lot.
For all the reasons above, at this moment the best course of action is no longer to double-down on investing in growth, but rather to refund unused capital and close the marketplaces.
The consequences are very tough for the Neptune Mutual team who have spent the past 3 years of their time on the mission to facilitate safer environments within DeFi. The team has delivered products according to the roadmap and the fact that the protocol was never hacked, despite attempts being made on the darkweb, is testament to the expertise, passion and absolute focus on security. The team survived the FTX and UST crisis unscathed, and believed that the continued growth in hacks would lead to growth in the demand for a good solution to mitigate these risks, but sadly, as can be seen right across the DeFiInsurance category, this is not yet in sight. So we would like to thank the team for all the dedication, skill and passion invested into the Neptune Mutual project since the outset.
The team will open source the protocol, including blockchain indexing protocol (subgraph alternative), frontend, middleware, database, and backend code, to make it a true public good. This will allow anyone to fork the code and create covers by defining parameters and premium ranges, potentially leading to innovative covers and organic usage.
The Discord channel will be closed to reduce the risk of phishing and other types of cyber attack, any questions / queries will be responded to in the Telegram channel.
We want to take this final opportunity to thank you all for your support.
Neptune Mutual will contact only its financial backers, with whom a signed agreement exists, in relation to next steps (i.e. holding NPM tokens does not qualify you for any form of refund). Contact will be made only from a neptunemutual.com domain email address so please check the source of any email you may receive very carefully. Please ignore any messages from any other email or social media accounts in relation to token/cash refunds.
It’s here at last! The Neptune Mutual gamified testnet is now live on the Fuji Network.
It’s here at last! The Neptune Mutual gamified testnet is now live on the Fuji Network, the official testnet environment of Avalanche. We’re super excited to share with you a more comprehensive and efficient way to access parametric cover protection for your digital assets.
Like the previous gamified testnet launched on the Polygon Mumbai network in March 2022, this version is designed to reward users who actively engage with the various aspects of the protocol. Purchase a policy, supply liquidity to cover pools, and report incidents to work your way up the leaderboard.
We’ve added a new reward category – Neptune Mutual collectible NFTs. Through our NFT collection, we hope to share with our community the chronicles of Neptune, lord protector of the seas.
Check Out the New Diversified Cover Pools Product#
Diversified cover pools help provide liquidity to a portfolio of cover products, each with its own specific cover policy trigger parameters.
If a trigger incident occurs, all the policyholders of that specific cover product get a pay out from the diversified pool.
In this way, partial payouts of liquidity are possible from a diversified cover pool in the sense that each cover product is allocated only a portion of the total liquidity of the diversified pool.
Head over to Metamask, and choose your preferred test network as Fuji. Visit https://faucet.avax.network/ to acquire your Avalanche Fuji testnet tokens, and the Neptune Mutual YouTube channel for detailed instructions.
Participate in quality transactions and provide feedback on the protocol in our selected Discord channels.
After completing the transactions, you can access our Leaderboard to see the points you've earned and the rankings they correspond with.
Follow our Twitter and Discord-based channels to keep up with our announcements and other upcoming releases.
There are three primary stakeholder roles in the Neptune Mutual ecosystem, but for a full overview of all the stakeholders have a read of our Ecosystem blog.
As a cover policy purchaser, your role is to go through the various cover products in the marketplace and purchase policies for your preferred projects. The process is straightforward and takes only a few minutes to complete.
Step 1:
If you choose to [Purchase Policy], you will get a brief overview of the project.
It will show you the amount of stablecoin in the cover pool along with the liquidity available to underwrite policies available in the cover pool.
On the right, a reporting period section shows you how long it will take the community to validate an incident after it is reported.
Typically, the reporting period on the (Avalanche) mainnet will be 7 days. However, for the testnet, it’ll only take 30 minutes to make testing easier.
You’ll also find the cover rules that define the conditions that’ll trigger a cover policy to make a payout.
If a hack or exploit on the project is reported, the community will refer to these cover rules in making a decision on whether or not the cover pool should make a payout to its cover policyholders.
It’s crucial that you understand these cover rules and review them in detail before you purchase a cover policy.
Step 2:
If you agree with the cover rules, you can confirm your cover policy purchase by clicking the checkbox and [Next].
Input Amount for Cover Protection After agreeing to the cover rules, you can now input the amount of cover protection you need.
Step 3:
Select your coverage amount. Then, you’ll receive cxDAI that you’ll hold on to for the duration of the cover policy. You will use these cxDAI tokens to make your claim in the event the community decides your policy should get a payout after the incident.
Step 4:
Select your coverage period. You’ll find your claim’s expiry date and the cover fee you’ll need to pay in stablecoins.
Step 5:
Click [Approve DAI] then confirm the transaction. Afterward, you should see the notification: Purchase Policy Successfully.
Step 6:
To check your new policy, go to the [My Policies] tab at the top of the screen. You should find your new cover policy on your dashboard.
The liquidity provider (LP) role is importance because LPs provide the capital that is used to underwrite the risks associated with the policy of the cover product. As an LP, you will earn cover fee income, as well as Proof of Deposit (POD) tokens that can be staked for additional rewards.
If you choose to [Provide Liquidity], you’ll get a brief overview of the project similar to that when you choose to purchase a policy.
In the overview, you’ll see the policy’s reporting period, the reassurance amount, and the total liquidity available for underwriting policies expressed in dollars. You’ll also find the cover rules that define the conditions for providing liquidity. It’s crucial that you understand these cover rules and review them in detail before you provide liquidity to the cover pool.
Step 2:
If you agree with the cover rules, you can provide liquidity and confirm by clicking the checkbox and [Next].
Input Amount to Provide Liquidity Once you agree to the cover rules, you can now input the amount of liquidity you want to provide to the cover pool. You must stake at least 250 NPM tokens in order to participate in the pool. You need to provide the specified stablecoin, in this case, DAI.
Step 3:
Enter the number of NPM tokens you wish to stake.
Step 4:
Enter the amount of stablecoin liquidity you want to supply. As a result, you should get an equivalent Proof of Deposits token (POD) against the liquidity you provided in DAI. Each cover will have its unique POD. PODs across different liquidity pools have different smart contracts which make them non-interchangeable. Note: To make testing easier, the timeframe to unlock your liquidity will be set to 1 hour after being supplied to the pool.
Step 5:
Click [Approve DAI] and [Approve NPM]. Step 6: Confirm each of the continuing transactions in your wallet.
When a predefined trigger event occurs, it’s the duty of the incident reporter to report it and ensure it fits within the parameters of the cover rules. You will earn rewards for reporting and validating incidents, as well as for disputing incidents that do not meet the specific trigger parameters.
Join the Neptune Mutual Testnet Gleam Competition Now.
Register on Gleam to join the NPM testnet contest. Who knows you could be one of the 100+ lucky winners?
The first place winner gets a Surprise NFT Treasure Vault and the second place winner gets a Surprise NFT Treasure Box. The other 100 winners each receive $100 worth of NPM tokens at the IDO or public round price and one Neptune Mutual NFT.
Follow us on Medium to stay updated on all our latest announcements and future releases.
How To Use the Neptune Mutual Testnet on Fuji Network#
If this is your first time interacting with the Neptune Mutual protocol, we’ve included comprehensive video tutorials that cover everything you need to know.
Connect to Neptune Mutual Faucet and Obtaining Testnet Tokens
Step 1:
Log in to your MetaMask wallet or any other cryptocurrency wallet you have.
Step 2:
Change your network to the Avalanche Fuji Testnet network from the drop-down menu at the top of the wallet pop-up.
Step 3:
Create a new wallet address by clicking on the icon at the top-right corner of the pop-up.
Step 4:
Click [Create Account].
Step 5:
Next, you need to get some test avax (AVAX). You’ll use test AVAX to pay for the testnet gas fees needed to make transactions on the testnet.
Step 6:
To acquire test AVAX, open faucet.metamask.io on your browser.
Step 7:
Click [request 1 AVAX from faucet].
Step 8:
Go to test.neptunemutual.net after you complete the transaction
Step 9:
Once you’re there, click [Connect Wallet]. Choose which wallet provider your wallet belongs to. If it’s MetaMask, choose Metamask. By then, your wallet should get connected. Go to the link at the top-most part of the screen. It should take you to https://faucet.avax.network/
Step 10:
Select the Fuji network.
Step 11:
Click [Connect] then MetaMask or again, whichever crypto wallet you use.
Step 12:
On the right side of your balances, click the [+] button to add DAI and NPM tokens to your MetaMask wallet.
Step 13:
Click [Request]. This should open your MetaMask wallet.
Step 14:
Under the Details tab, you can click [Edit] and select [High] to increase gas fee charges if you want to transact faster. Click [Confirm]. By then, you should receive DAI stablecoin or NPM tokens. Balances for each will reflect accordingly on your wallet.
Step 15:
Once you’re done with all that, you can now go to test.neptunemutual.net to interact with the Neptune Mutual protocol.
Now that you’re on the test.neptunemutual.net home page, let’s go over the terms and values you’ll find on its dashboard.
TVL (Cover)
The total amount of liquidity in all the cover pools. You can see its progression over time in the dynamic graph on the right.
TVL (Pool)
Liquidity locked in the bond and staking pools.
Covered
The total amount of cover policies purchased.
Cover Fee
The total amount of cover policy fees paid.
Available
The number of projects that have created cover pools available for you to purchase cover policies from.
Reporting
The number of projects being reviewed by the community to identify cover policies that should payout after the report of an incident.
Available Covers
List of available cover pools and cover policies dedicated to an individual project. For each cover pool, you’ll find the:
Project’s name
Range of the cover fees
The exact price of the cover
Utilization ratio
Amount of cover policies purchased
Amount of liquidity in the cover pool
Unsupported Regions
No access will be granted to the competition from residents and citizens of the US and US Territories or in other words, both US Person and a US Taxpayer. No access will be granted to the competition from residents and citizens of any sanctioned country. Neptune Mutual reserves the right to add additional countries to the list of unsupported regions for any reasons at the discretion of Neptune Mutual.
