Nexus Mutual stakes its capital pool with Kiln through Enzyme
Nexus Mutual, the leading on-chain insurance alternative protocol, successfully passed a governance proposal and has now allocated part of its capital pool to staking with Kiln through Enzyme. Nexus Mutual’s treasury is managed by Avantgarde, a team of experienced treasury managers who are the core developers of Enzyme.
6,624 WETH, more than $11 million at the time of writing this post, from Nexus Mutual’s capital pool are now actively generating staking rewards that will be used to grow the capital pool and cover future claim payouts.
Why did Nexus Mutual choose to stake with Kiln?
We partnered with Enzyme in February this year so asset managers could boost their investment strategies with Ethereum staking. By leveraging Kiln On Chain, any Enzyme vault holder can access staking rewards in a non-custodial manner.
From staking transactions to claiming rewards, the whole process is done on-chain and is managed by vault managers, fitting Enzyme’s mission to be the go-to DeFi operating system.
Besides a transparent staking process, Nexus Mutual also benefits from Kiln’s reporting API on our staking SDK to monitor their validators' performance and generate staking rewards in real-time.
“Seeing Nexus Mutual, one of our oldest coverage partners, entrust its ETH treasury to Kiln is a validation of our On-Chain solution for decentralized organizations. Through Enzyme, we offer a seamless, verifiable, and auditable process, empowering DAOs and institutions to easily benefit from staking rewards.” — Laszlo Szabo - Kiln CEO
“Having a native integration with a reliable staking partner like Kiln made it very easy for Avantgarde to go out and make treasury proposals that could successfully go through DAO governance and the strict community scrutiny. It was great to see how well the proposal was received by Nexus Mutual.” — Luca (Moss) Mossini - Avantgarde/Enzyme Head of BD
How to stake with Kiln and Enzyme
Enzyme users holding 32 ETH or more can stake ETH by following these steps. It generally takes less than 5 minutes to complete your first transaction. Please note that withdrawals will only be available with a future Enzyme upgrade:
- Connect your wallet on https://app.enzyme.finance/discover
- Navigate to DeFi Protocols, then select Kiln.
- Click the actions toggle in the positions table and select ‘Stake WETH’.
- Select the desired amount of WETH and press ‘Stake’.
- WETH is automatically unwrapped to ETH and sent to a Kiln Staking Contract to be staked through validators.
- After staking, you can manage the position & claim fees at any time.
Understanding the staking opportunity
In PoS blockchains, staking consists of locking native tokens to earn the right to help secure the chain via a validator. Validators play a vital role in securing the network, proposing, and validating blocks, and maintaining consensus. Through these activities, validators earn rewards on behalf of stakers who allocate a portion of their assets to the network.
Staking is widely regarded as the most organic method of earning rewards in crypto, as these rewards are derived from actively participating in the validation, decentralization and security of the blockchain. Rewards are distributed through a combination of protocol inflation and a portion of transaction fees.
Stakers receive rewards in the form of the protocol's native tokens as a result of their participation in the network. These rewards, referred to as staking rewards, can originate from newly minted tokens or fees paid by users of the protocol. Staking serves a pivotal role in bolstering network security, facilitating governance, and making substantial contributions to the overall growth of the Web3 ecosystem.
About Nexus Mutual
Nexus Mutual is the leading provider of crypto protection. Since 2019, Nexus Mutual has protected $4.4B of crypto assets and paid out more than $17M in claims to people who suffered losses. Nexus Mutual is the trusted partner for institutional clients, family offices, and crypto protocols that seek protection.
To learn more about Nexus Mutual, please visit their website at nexusmutual.io.
About Kiln
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake assets, and to whitelabel staking functionality into their offering. Kiln runs validators on all major PoS blockchains, with over $2b worth of stake under management and running over 3% of the Ethereum network, on a multi-cloud, multi-region infrastructure. Kiln also provides a validator-agnostic suite of products for fully automated deployment of validators, reporting and commission management, enabling custodians, wallets and exchanges to streamline staking operations across providers. Kiln is SOC2 Type 2 certified.
About Avantgarde & Enzyme
Avantgarde helps financial services players, crypto-natives and DAos get exposure to DeFi investment opportunities in a compliant manner, removing all technical complexities and managing the risks associated with this new technology. As the founders and core contributors to the Enzyme protocol, we utilise our experience in both DeFi and traditional finance to build products and services on top of Enzyme.
Enzyme is an on-chain asset management system that enables access to digital assets and DeFi from one simple, unified app. It provides a front-to-back execution and order management system, which provides fully automated reporting, risk management, administration, governance and operations.
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