DeFi protocol strengthens security against cyber attacks
Nexus Mutual is the name of the hedging protocol and will be in charge of securing centralized exchange accounts
The DeFi Nexus Mutual hedging protocol will be the proposal promoted by the project, which has included a list of eligible centralized exchanges who will be shielded against any event that disrupts the security of the platforms.
The protocol will allow users trading on Binance, Kraken, Coinbase and Gemini to now purchase protection in the event of a hack or extended downtime for withdrawals.
The program launched in late 2020 included centralized lenders such as: BlockFi, Celsius, Nexo, Ledn and Hodlnaut. Currently, to be able to enjoy coverage, it is necessary for the user to become a member of the Nexus mutual and undergo verification.
It is important to mention that Nexus is not an insurance provider, the difference is that the insurance has contractually defined clauses that establish how and when a claim must be fulfilled.
The decision to pay claims at Nexus Mutual is solely at the discretion of the members and participants. While in practice this may not be a problem, extreme cases could put the system to the test.
K. Villarroel
Source: cointelegraph
