Neptune Mutual FAQ
- Fenbushi Capital
- Animoca Brands
- Coinbase Ventures
Neptune Mutual Liquidity Engine can automatically provide stablecoins to the Compound and Aave (v2) protocols. We intend to support a few other protocols based on TVL and booted-since duration. We see the security of third party onboarding as critical as our risk appetite is relatively low. Since we're safeguarding both Compound and Aave, we've opted to stop the integrations to reduce unwanted risks. In contrast to other DeFi and decentralized insurance protocols, Neptune Mutual does not subscribe to the philosophy of holding custody of community assets available in liquidity pools and leveraging them to make profits since greed almost always has unpleasant outcomes. In the same way that we dodged a number of hazards, such as UST, and a number of "excellent investment opportunities," it is likely that a number of appealing high-yield protocols may emerge in the future. We have no plans to use any of them.
Neptune Mutual is strictly a non-custodial protocol, and we will never touch community deposits unless responding to a cyber attack.
Neptune Mutual is already live on Ethereum and Arbitrum. We plan to support a number of blockchain networks progressively. Our main goal when selecting a blockchain network is the availability of stable, proven and tested, secure and low-risk lending protocols to provide some returns to our liquidity providers.
The initial list of projects covered under Neptune Mutual will be made available to the public. For the time being, the creation of covers is an invitation-only system, as we will progressively allow a wider audience to create covers in the future. For full list of supported exchanges and projects, please visit our marketplace:
We are building our parametric-style cover solution cater to:
Security is our top priority. Before our protocol is launched, we will publicly release our audit report(s). We will engage more audit companies to get regular audits done.
As we have witnessed numerous supply-chain attacks against DeFi apps, smart contract audits alone is not enough. We plan to do more:
- Smart Contract Security
- Role-based access control
- Well-structured, properly-defined, and fine-tuned ACL usage that conforms to the principle of least privilege
- Internal Solidity security guidelines
- Adherence to SWC Registry guidelines
- Unit Testing & Test Stories (BDD)
- Source code analyzers: static, dynamic, and subscription based
- Third-party smart contract audit(s)
- Application Testing
- Penetration testing
- Stress testing
- Proper Cyber Hygiene
- Supply-chain Security and Monitoring
- Dependency audit
- HTTP security
- DNS security
- Secrets and access key usage audits
- Favoring pull over push when deploying
- Bug Bounties
Here are some of our publicly-available security reviews and audits:
No, it does not. Our cover pools are denominated in stablecoins.
Neptune Mutual project does not cover stablecoin pegs. We do not have any control over a stablecoin's price. When you see a dollar ($) value on the application UI, note that it is only used for display purpose so that it abstracts away DAI, USDC, or BUSD (as we are multi-chain) tokens.
Neptune Mutual's cover protocol contracts makes no use of oracles and perform no calculations dependent on the prices of fiat currencies, stablecoins, or other cryptocurrencies, such as ETH or BTC. Importantly, the protocol always assumes that the stablecoin we've used has a constant value of $1. Even if it goes significantly below or climbs above the $1 peg, the liquidity pools of Neptune Mutual and the ability of any pool to pay out claims remain unaffected. The protocol has been designed to withstand such black-swan events.
We do not think there should be a one-size-fits-all token. Neptune Mutual cover pools are funded in stablecoins collectively owned by liquidity providers, not us or the cover creators.
Having said that, NPM tokens are required as a fee, stake, or collateral:
- Create cover by paying NPM tokens (fee)
- Lock NPM to purchase protection by paying stablecoin (stake)
- Supply stablecoin liquidity to cover pool by locking NPM (stake)
- Voting in the consensus/reporting portal by locking NPM (collateral)
Please note that fees are expenses whereas stakes are unstakable but they don't earn any reward. The collateral, on the other hand, typically earns rewards but can be forfeited. Invalid users may lose 100% of their collateral. Please be aware of risk factors and please do not invest any money you can't afford to lose.
Please access our repositories hosted under the following Github organizations:
Please be on the lookout for our most recent annoucements here:
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