According to a <a href="https://medium.com/nexus-mutual/update-on-nexus-mutuals-exposure-to-m11-credit-s-weth-lending-pool-on-maple-finance-2b7ca94af337" target="_blank" rel="nofollow noopener">statement</a> on Monday, the alternative insurance provider Nexus Mutual anticipates losing money on its stake in a credit pool on the significant decentralized lending platform Maple Finance.
<h2>Nexus Announces to Remove Funds</h2>
According to a warning from Nexus, the recent default of Orthogonal Trading might result in a loss of 2,461 ether (ETH), or $3 million. The alternative insurance provider also announced that it has begun to remove all monies from the impacted wrapped ether credit pool. According to the statement, this accounts for 1.6% of Nexus's assets.

Following a public vote, Nexus placed 15,463 ETH, or approximately $19.3 million at the current market prices, into a wrapped ether credit pool on Maple Finance in August. A peer-to-peer risk-sharing system called Nexus provides a substitute for insurance against risks in <a href="https://www.cryptoknowmics.com/news/defi-protocol-ankr-manipulated-for-over-5-million">decentralized finance (DeFi)</a>, such as <a href="https://www.cryptoknowmics.com/news/sec-tries-to-suspend-sale-of-american-cryptofed-dao-tokens">DAO</a> attacks and smart contract issues. A group of NXM token owners runs it.
<h2>Data From Auros and Maple’s Credit Dashboard</h2>
However, it appears that additional Nexus money is in jeopardy. Around $5 million worth of Orthogonal Trading's defaulted debt on Maple's wrapped ether credit pool (3,900 wETH). Auros Global, a troubled market maker, also owes the same pool of lenders an additional $7.5 million (6,000 wETH) in active loans after defaulting on a $3.1 million (2,400 wETH) loan.

According to Maple's credit dashboard, the problematic debt accounts for 56% of the $27.8 million total outstanding debt in the wETH credit pool. The alternative insurance provider can only withdraw $3.1 million in cash deposits that are not constantly bound up in loans. Prior to capital withdrawals, Maple requires a 10-day holding period for deposits.

Nexus Expects Loss on Maple Credit Pool Invest as FTX Contagion Spreads

Nexus Mutual anticipates losing money on its stake in a credit pool on the significant decentralized lending platform Maple Finance.

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Nexus Expects Loss on Maple Credit Pool Invest as FTX Contagion Spreads

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