Nexus Mutual

Chaos Labs Partners with Nexus Mutual for Economic Security and Risk Optimization

Omer Goldberg

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Chaos Labs Partners with Nexus Mutual for the RAMM Economic Security Audit

We're thrilled to share our partnership with Nexus Mutual! After an extensive RFP process, the Nexus Mutual Foundation selected Chaos Labs as an economic security and risk partner. This collaboration is set to fortify the future of the Ratcheting AMM (RAMM) design, a critical component of the Nexus Mutual protocol.

RAMM Economic Security Audit Scope

Chaos Labs will construct Agent-Based Monte Carlo simulations to conduct an economic audit of the RAMM design and will work with the Foundation Engineering and DAO R&D teams as the new tokenomics development progresses. Here's a closer look at what this partnership will encompass:

  1. RAMM Mechanism Design: An exhaustive review of the RAMM mechanism will test its robustness during ordinary and volatile market circumstances.
  2. RAMM Parameter Assessment: Chaos Labs will derive crucial insights from the simulation analysis into the RAMM parameters configuration and recommend possible enhancements or changes.
  3. Safeguarding Against Manipulation: Chaos Labs will research economic vulnerabilities and attack vectors and devise strategies to shield the mechanism from such risks.

What’s Next

The Chaos team has already started working, with the initial 8-10 weeks focused on design review, manipulation analysis, and building the simulation framework for the Stage 1 implementation of the RAMM.

After completing the above, we will move to the next stage, encompassing simulations, result analysis, and recommendations, which will be shared in a publicly available report.

About Nexus Mutual

Nexus Mutual is a decentralized insurance alternative that allows members to join and share risk. Members can purchase cover products that protect against different kinds of risk. The Nexus Mutual protocol is built on Ethereum and provides the infrastructure for members to buy cover, underwrite risk, assess claims, and build risk management businesses.

Nexus Mutual brings the traditional discretionary insurance mutual into the decentralized world of blockchain, aiming to provide solutions for risks unique to the crypto space while engaging its community in the governance and operation of the protocol.