The Bond Pool function is risky, and utilizing it will most probaly result in losses. Before using this functionality, please do holistic due diligence and carefully inspect all of your risks. Please note beforehand that we will manually or (if solution is available) in an automated fashion move liquidity from DEXes to cover pools.
Via our partner network, the NPM Bond Pool is designed to provide liquidity to our portfolio pools and cover an increasing number of projects within the Ethereum DeFi ecosystem. However, liquidity sponsorship decisions are made at our discretion. Even after providing liquidity to a pool, we can move liquidity between covers.
You may use the Bond Pool functionality to exchange your NPM/DAI pair tokens for a discounted NPM tokens after a week of waiting (lockup period). After your lockup period, you can claim your bond to receive discounted NPM tokens instead of the Uniswap v2 LP tokens.
Bond Pool enables Neptune Mutual to bootstrap POL (Protocol-Owned Liquidity). The POL will not only increase the liquidity depth of the NPM tokens on decentralized exchange(s), but will also be further used to promote low-risk, high-demand cover projects in the NPM cover marketplace. Since NPM tokens are fixed and deflationary, the pair's decoupled NPM will be recirculated in the Bond Pool.
For Cover Creators#
Obtaining Neptune Mutual's stablecoin liquidity support is a solid sign that your project is generally safe. Due to the limited capital available for sponsorship and the stringent vetting procedure, only a small number of cover projects will get liquidity sponsorship from Neptune Mutual. This increases liquidity provider trust since LPs may see that Neptune Mutual has invested into your cover pool. The LPs can see that we are not requesting the community to join your liquidity pool without first putting our own money in.
How does this work?#
Portfolio cover projects may submit an application for stablecoin liquidity backing for their cover pool. To be considered for sponsorship of liquidity to a cover pool, your project must have completed at least two protocol security audits conducted by one of our preferred audit companies. The following are some of our preferred smart-contract auditing companies, although they are not limited to: Open Zeppelin, Consensys Diligence, Sigma Prime, IOSIRO, MixBytes, Certora, Quantstamp, LeastAuthority, Trail of Bits, Peckshield, Blocksec, Dedaub, Certik, Hacken, Halborn in no specific order.
After we have reviewed your application, a member of the Neptune Mutual team will contact you to discuss the next steps. In addition to confirming your audit reports against the deployed contract source and the current state of your Github repository, we will do extra security screening to confirm that your project satisfies our basic security expectations. You will get one-time completely free security review in the following areas. You may contact us for a later round of assessments based on our availability. We may ask you to list your tokens to our community staking pool as a fee.
- Smart Contract Review
- SDK Review
- Frontend Code Review
- DNS Security: DNS cache poisoning, DNS Spoofing, NXDomain, Random Subdomain Attack, Email Spoofing, and many more
- Web Server and/or Linux Hardening Tips
- Evaluating Existing Services and Identifying Relatively More Secure Counterparts
- HTTP Security: identifying possible web application attack vectors such as XSS Attack, SQL Injection Attack, NoSQL Injection Attack, HTTP Parameter Pollution Attacks, and more.
- CI/CD and/or Supply Chain
- Server Hosting Security Checklist
- Github Branch Protection Rules
- Dependencies and Build Script Vulnerabilities
- Identifying Supply Chain Attack Vectors
To combat spam requests and free security consultations, we may require you to initially deposit 25% of your desired stablecoin capital in your project token, which will be utilized in the future as a reward to the NPM tokenholder community on the staking portal
Startups with strong early traction are encouraged to contact us for a security consultation, funding, and listing your cover pool.
Understand the Risks#
Please read our standard risk disclaimer before proceeding. Furthermore, buying cryptocurrencies and staking your crypto assets in a smart contract is risky. Neptune Mutual is risky. There are no guaranteed returns at Neptune Mutual. We do not attach APR or predict the returns on the UI. The percentages displayed in the UI are based on best-case scenario settings which may never be achieved practically. Returns are not guaranteed. Neptune Mutual neither promises nor will be ever able to provide you with any assurances of returns.
Underwriting and Liquidation Risks#
However, unlike most other DeFi insurance protocols, Neptune Mutual staking pools (not POD staking pools) are not subject to any underwriting requirement. Therefore, your staked NPM tokens will never be used to make claims payouts.
The NPM/USDC LP tokens and other assets locked in bond pools are not a part of the underwriting capital, and are therefore not directly exposed to pool liquidation in the event of an incident. Except for security vulnerabilities, your staked NPM tokens in Bond Pool and Staking Pools (excluding POD Staking Pools) are immune to the slashing risks.
Slashing Risks: Neptune Mutual vs Competitors