Armor is an insurance broker for DeFi, built on top of Nexus Mutual, that offers PAYG coverage for smart contract bugs and attacks. All Armor insurance is underwritten by Nexus Mutual. The benefit to the DeFi ecosystem is that Armor insurance is permissionless (Nexus requires KYC), and flexible with regard to coverage amounts and policy duration. Advanced funds tracking features that update on a per-second basis allows for minimized billing, and supports a streamlined payment system.
arNXM and Armor Tokens
There are two tokens associated with the Armor project, and both are tied indirectly to Nexus Mutual. The Nexus Mutual token, NXM, can only be held by whitelisted addresses, the mutual members. Members can wrap NXM tokens to create wNXM, which can be traded as normal; however, only Nexus Mutual members can unwrap wNXM to access the NXM it represents, and use it to power the Nexus Mutual ecosystem.
The Armor protocol controls a whitelisted address, and so is able to unwrap wNXM and use the unlocked NXM for yield earning. When users deposit NXM or wNXM via the vault, the yield-bearing arNXM token is generated. arNXM may appreciate in value compared to the wNXM token while retaining the same speculative and permissionless trading qualities. In addition, the arNXM token can be deposited into a dedicated vault on the Armor platform when LPing with ETH or wNXM to earn its native governance token, ARMOR. A total of 1 billion ARMOR tokens are being distributed over two years: 65% to community members (including liquidity incentives, see note below), 35% to early team members with a 2-year vesting period.
The token distribution model for ARMOR includes special provisions for kick-starting liquidity on decentralized exchanges. During the preparation of this proposal, it was agreed that the Armor treasury would contribute $1,000,000 worth of Armor liquidity upon successful whitelisting. Due to our existing relationship with Nexus Mutual, and the recent success in stimulating growth on the wNXM pool, the addition of arNXM and Armor to the whitelist schedule could position Bancor as the default trading platform for DeFi insurance tokens. This could be an important niche, and we are uniquely poised to capture it. It is worth noting that the Armor community is highly motivated to make this vision a reality, and many are already BNT holders, and are active participants in our DAO already.
The Armor smart contracts have been audited by Haechi, and the reports are available for review via the ArmorFi GitHub page.
Market and Trading Data
Fully Diluted Market Cap: $19,140,070.66
Circulating Supply: 492,990.29
Trading Volume: $216,449.59
All-time-high: $64.21 (Feb 4th, 2021)
All-time-low: $37.02 (Feb 1st, 2021)
Exchange Availability: The top exchanges for trading in arNXM are currently Uniswap (V2), Sushiswap, 1inch Exchange, and Balancer, according to CoinMarketCap.com
Fully Diluted Market Capitalization: $1,046,805,123.30
Circulating Supply: 24,749,212 of max 1,000,000,000
Trading Volume: $4,226,095.26
All-time-high: $1.85 (Feb 4th, 2021)
All-time-low: $0.59 (Feb 1st, 2021)