Introduction
Neptune Mutual Cover Protocol
The Neptune Mutual protocol is based on the parametric coverage model, a kind of insurance designed to protect policyholders against financial risks.
In contrast to discretionary mutuals, you are not required to move back and forth between underwriters, claims assessors, loss adjusters, or any other intermediaries, centralized party, or privileged users in order to get your claims reimbursement. There is no need to verify or analyze your claims. When a cover event happens, everyone who has cxTokens can claim them for an equal number of stablecoin payouts (minus fees). As long as one policyholder makes a claim that's successful, it's fine for everyone else to do the same.
The trigger or incident does not have to result in your financial loss under an index-based or parametric coverage model. In other words, if you think something will happen in the future, you may guess or forecast that it will happen. When an incident occurs, you do not need to provide any evidence, submit data or screenshots, or communicate with a special or privileged user to confirm that you were a victim of an incident and wait for a verdict.
If you have a cxToken with an expiry date greater than the incident date, you can claim your cxTokens for a USD stablecoin after the reporting period, if the resolution is in your favor. There is no time lag between submitting a claim and getting a payout. Furthermore, the amount you get is never a partial payment. Payouts will be made in full, less protocol fees.
The Neptune Mutual protocol can handle any cover situation because of the built-in consensus portal (reporting system). Even so, we're only going to focus on the smart contract and exchange coverage at first. The key reason is because of the platform's commercial and competitive advantages and potential.

Neptune Mutual vs Nexus Mutual Comparison

Topic
Neptune Mutual
Nexus Mutual
Protection Model
Based on parameters defined in the contract. Resolution achieved via governance portal.
Open, fair, inclusive, and non discriminatory
Discretionary
Based on the discretion of special privilege users.
Closed, requires KYC and special membership, possibility of discrimination via discretion
Triggered By
Incident or Exploit → Reporting
Claim → Assessment
KYC
Not Required
Required
Proof of Loss Submission
No need
Required
Guaranteed Payout (On Positive Resolution)
Yes
No guarantee
Token Name
NPM
NXM
Maximum Supply
1,000,000,000 NPM
Unlimited
Supply Model
Deflationary
Inflationary
Resolution Achieved Via
Governance portal
Claims assessor's decision
Centralization Risk
Very low
Claims Process and Decision (On Positive Resolution)
Fast and immediate
Extremely slow and complex based on the discretion of claims assessor
Scalability
Highly Scalable. A single resolution will be applicable for everyone.
Less Scalable. Decision for each claim has to be individually assessed.
Tokenholder Lock-In
No Lock-In
Yes. WNXM trading at 70-80% discount as tokenholders exit.
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