Risk accessors providers deposit funds into Nexus Mutual and receive insurance premiums from policyholders (currently as token incentives).

Nexus Mutual is a non-custodial insurance protocol built on Ethereum. Nexus Mutual was founded by Hugh Karp and launched in 2017.

NXM tokenholders own and govern the protocol. They currently take all of the total insurance premiums paid by policyholders (revenue). Nexus Mutual's investors include KR1, Kenetic, Version One Ventures, etc.

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Nexus Mutual

# Nexus Mutual Revenue Methodology

## 1. Overview

Revenue for Nexus Mutual represents the total premium payments collected from insurance policy purchases. This metric captures the core income stream of the decentralized insurance protocol by tracking premium payments made by users when buying coverage. The calculation aggregates all premium payments across both version 1 and version 2 of the Nexus Mutual protocol, converts them to USD, and treats them as protocol revenue.

## 2. Data sources

- **Ethereum event logs**: Parsed `QuotationData_CoverDetailsEvent` events from Nexus Mutual v1 contracts containing premium payment details
- **Ethereum transaction traces**: Function call traces for `Cover_buyCover` functions from Nexus Mutual v2 contracts showing premium payments
- **End-of-day price feeds**: Standard token price data for USD conversion of most payment tokens
- **CoinGecko daily market data**: Specialized price feed for NXM token due to limited coverage in standard price feeds
- **Token metadata**: Token decimal information for proper amount normalization

## 3. Step-by-step calculation

### Component A: Premium extraction from v1 events
- **Purpose**: Captures premium payments from Nexus Mutual version 1 insurance purchases
- **Logic**: Extracts `QuotationData_CoverDetailsEvent` events from Ethereum event logs, filtering for valid transactions where `removed` equals false. Premium amounts are taken from the `premium` field and payment currencies from the `curr` field. Each event represents a completed insurance policy purchase with the associated premium payment.
- **Key fields**: `premium` (payment amount), `curr` (token ID for payment currency), `block_timestamp` (transaction time)

### Component B: Premium extraction from v2 function calls  
- **Purpose**: Captures premium payments from Nexus Mutual version 2 insurance purchases
- **Logic**: Extracts `Cover_buyCover` function call traces from Ethereum transaction data, filtering for successful transactions where `status` equals true. Premium amounts are taken from the `maxPremiumInAsset` parameter and payment tokens from the `paymentAsset` parameter within the function parameters. These represent the maximum premium amounts paid for insurance coverage.
- **Key fields**: `maxPremiumInAsset` (maximum premium paid), `paymentAsset` (token address for payment), `block_timestamp` (transaction time)

### Component C: Token address mapping
- **Purpose**: Converts token IDs from events into actual token contract addresses
- **Logic**: Maps token IDs used in v1 events to their corresponding Ethereum token contract addresses using a hardcoded mapping table. This includes mappings for ETH (WETH), DAI, NXM, and other supported payment tokens. The mapping ensures consistent token identification across both protocol versions.
- **Key fields**: `token_id` (internal identifier), `token_address` (actual contract address), `chain` (blockchain network)

### Component D: Daily aggregation and decimal correction
- **Purpose**: Standardizes premium data to daily boundaries and corrects for token decimal places
- **Logic**: Truncates all timestamps to daily boundaries and applies decimal corrections based on each token's standard decimal places. Premium amounts are then aggregated by day, chain, business line, market sector, and other dimensional attributes to avoid double-counting and create consistent daily totals.
- **Key fields**: `timestamp` (daily boundary), `fees` (decimal-corrected premium amounts), dimensional groupings

### Component E: USD conversion with dual pricing
- **Purpose**: Converts all premium payments to USD using appropriate price feeds
- **Logic**: Applies two different USD conversion methods depending on the payment token. For most tokens (ETH, DAI, etc.), uses standard end-of-day price feeds. For NXM tokens specifically, uses CoinGecko daily market data due to better price coverage. Premium amounts are multiplied by the appropriate USD price for the transaction date to get USD values.
- **Key fields**: `fees` (USD-converted premium amounts), `token_address` (determines pricing method), `timestamp` (price lookup date)

### Final aggregation
- **Combining components**: USD-converted premium amounts from both standard price feeds and CoinGecko sources are combined into a single dataset using union operations, ensuring all premium payments are captured regardless of payment token
- **Currency conversion**: All amounts are expressed in USD using end-of-day pricing, with special CoinGecko integration for NXM token pricing to ensure accurate valuation
- **Time aggregation**: Data is aggregated to daily boundaries with gap-filling logic that inserts zero values for days without premium payments to maintain continuous time series
- **Final calculation**: The total daily revenue equals the sum of all USD-converted premium payments across all insurance policy purchases, with premium payments treated directly as protocol revenue since they represent the core income stream of the insurance business

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

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