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 Transaction volume Methodology

## 1. Overview

Transaction volume for Nexus Mutual measures the total value of insurance coverage purchased on the platform, expressed in USD. This metric captures the economic activity of users buying insurance policies, aggregated daily across different versions of the Nexus Mutual protocol. The calculation combines coverage purchase events from Nexus Mutual v1 and function call data from Nexus Mutual v2, converting all amounts to USD using end-of-day price feeds.

## 2. Data sources

- **Ethereum blockchain event logs**: Parsed `CoverDetailsEvent` events from the Nexus Mutual v1 QuotationData contract, containing coverage purchase details including sum assured amounts and currency identifiers
- **Ethereum blockchain transaction traces**: Parsed `buyCover` function calls from the Nexus Mutual v2 Cover contract, containing coverage parameters including amounts and cover asset identifiers  
- **Token metadata**: Token information including decimal places and addresses for proper amount normalization
- **End-of-day token price feeds**: Daily closing prices for converting token amounts to USD values
- **Protocol token mapping**: Nexus Mutual's internal token ID to Ethereum address mapping for ETH, DAI, and NXM tokens

## 3. Step-by-step calculation

### Component A: Nexus mutual v1 coverage extraction
- **Purpose**: Extract insurance coverage purchases from Nexus Mutual v1 events
- **Logic**: Parse `CoverDetailsEvent` events from the QuotationData contract on Ethereum. Filter for non-removed events (where `removed` equals false). Extract the sum assured amount from the `sumAssured` field and the currency identifier from the `curr` field. Map the currency token ID to the corresponding Ethereum token address using a predefined lookup table that includes ETH (token ID 0), DAI (token ID 1), and NXM (token ID 255)
- **Key fields**: `sumAssured` (coverage amount), `curr` (token ID), `block_timestamp`, `transaction_hash`

### Component B: Nexus mutual v2 coverage extraction  
- **Purpose**: Extract insurance coverage purchases from Nexus Mutual v2 function calls
- **Logic**: Parse `buyCover` function calls from the Cover contract on Ethereum. Filter for successful transactions (where `status` equals true). Extract the coverage amount from the function parameters `amount` field and the cover asset from the `coverAsset` field. Map the cover asset token ID to the corresponding Ethereum token address. Apply decimal correction by dividing the raw amount by 10 raised to the power of the token's decimal places to normalize the value
- **Key fields**: `amount` (from function parameters), `coverAsset` (token ID), `block_timestamp`, `transaction_hash`

### Component C: Token mapping and normalization
- **Purpose**: Standardize token identifiers and normalize amounts across protocol versions
- **Logic**: Use a hardcoded mapping table to convert Nexus Mutual's internal token IDs to standard Ethereum addresses. The mapping includes ETH (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2), DAI (0x6b175474e89094c44da98b954eedeac495271d0f), and NXM tokens. For v2 data, join with token metadata to retrieve decimal information and normalize amounts by dividing by the appropriate power of 10
- **Key fields**: `token_id`, `token_address`, `decimals`

### Final aggregation
- **Combining components**: Union the normalized coverage data from both v1 and v2 sources, ensuring consistent schema with fields for timestamp, transaction hash, chain, business classifications, token address, and amount
- **Currency conversion**: Apply USD conversion using the `convert_to_usd_and_correct_decimals` macro with end-of-day price feeds, converting all token amounts to USD equivalent values
- **Time aggregation**: Truncate timestamps to daily boundaries using `timestamp_trunc` function, grouping all transactions within each calendar day
- **Final calculation**: Sum the USD-converted coverage amounts by day, maintaining granularity by chain, business line (Insurance), market sector (insurances), business segment (insurance), version, account name, and token address. Apply finalization logic including schema validation, gap filling with zeros for missing days, and chain availability filtering to produce the final daily transaction volume metric

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

Total USD value of transactions processed by the application.

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