MCR

in_a_land_far_away

Not true! You can unwrap wNXM anytime, the issue is you can't exchange your NXM for ETH unless the MCR is above 100%, its currently 94%, so yeah NXM is illiquid, hence the 60% discount on wNXM.

Micksar

At least MCR has a new song out…

FreddieChopin

Disclaimer - I'm not into the details of DAI design. But what if you have the coin OVERcollateralized? In case of LUNA/UST we had (sort-of) just 100% collateralization, so indeed once LUNA goes down, the odds are off. But if you have anything above 100%, then you can have a liquidation mechanism - once the collateral drops below some threshold, you liquidate it for whatever you want - be it DAI buy-back and burn or just sell the tanking ETH for a non-tanking USDC. As long as you maintain a healthy MCR (say >110% or even >120%) it should work.

bloodbank5

Nexus Mutual and InsurAce have both been tested, and operate on an MCR (Minimum Capital Requirement), which is essentially a ratio of the DAO's capital in proportion to the assessed risk of all policies - a well-tested model in the traditional insurance space. When there is insufficient money in the capital pool, premium prices grow and the capacity for new policies is automatically reduced. When there is an excess of money, premium costs drop and capacity opens up. Currently, InsurAce's capital pool sits at 55M - by design this is necessarily enough to cover a payout of all UST policies. In terms of payouts, it is in the DAO members' best interest to vote to pay out claims fairly, or else risk the value of their holdings dropping, which they must stake to participate in the voting process (and are proportional to their voting weight for claims).

bloodbank5

See [this comment ](https://www.reddit.com/r/CryptoCurrency/comments/uadpg0/lpt_buy_insurance_for_your_ust_anchor_holdings/i5xmq10) - Essentially the protocol assesses this risk when determining a given policy's cost and capacity. You are correct that covered events are typically more of a mass-payout vs individual case-by-case claims assessment, but this factors in when determining the insurable capacity for a given protocol. Keep in mind, there are many insured protocols paying into the same capital pool, so in essence they are all insuring each other. A simultaneous failure of many protocols however, could certainly bankrupt the DAO, but related protocols are also factored in when determining the MCR (Minimum Capital Requirement).

bloodbank5

Currently, InsurAce's capital pool sits at 55M - by design this is necessarily enough to cover a payout of all UST policies. InsurAce operates on an MCR (Minimum Capital Requirement) model, which is essentially a ratio of their capital reserves in proportion to the assessed risk of all policies - a well-tested model in the traditional insurance space. When there is insufficient money in the capital pool, premium prices grow and the capacity for new policies is automatically reduced. When there is an excess of money, premium costs drop and capacity opens up for new customers. In terms of payouts, it is in the DAO members' best interest to vote to pay claims fairly, or else risk the value of their holdings dropping, which they must stake to participate in the voting process (and are proportional to their voting weight).

bloodbank5

Nexus Mutual and InsurAce have both been tested, and operate on an MCR (Minimum Capital Requirement), which is essentially a ratio of the DAO's capital in proportion to the assessed risk of all policies - a well-tested model in the traditional insurance space. When there is insufficient money in the capital pool, premium prices grow and the capacity for new policies is automatically reduced. When there is an excess of money, premium costs drop and capacity opens up. Currently, InsurAce's capital pool sits at 55M - by design this is necessarily enough to cover a payout of all UST policies. In terms of payouts, it is in the DAO members' best interest to vote to pay out claims fairly, or else risk the value of their holdings dropping, which they must stake to participate in the voting process (and are proportional to their voting weight for claims).

frstrtd_ndrd_dvlpr

Fans and followers mentality I guess? I don't know about these dumb influencers but even I would probably think of buying some NFT shit if its from artists I like so much like MCR or Linkin Park