The following proposal is geared towards the Nexus Mutual Shield Mining program and how Rari Capital (RGT) would be incorporated.
Rari Capital has surpassed $100M in TVL and security will always remain the top priority. Since the exploit on May 8th, we have adjusted our security standards such as: removing external integrations, retainer program with Quantstamp, and exploring insurance mechanisms. I believe strongly in insuring Smart Contracts, and after a long conversation with the Nexus Mutual team, I am confident in this potential partnership.
The protocol already has an insurance mechanism on Cover, but there are no rewards, making it very unappealing to users. From anecdotal evidence, it is very clear that our community and protocol wants insurance, and Nexus Mutual can support us.
If this proposal passes successfully, we will work with the Nexus Mutual team to create and deploy a shield mining program for coverage on their platform.
How Nexus Mutual Coverage and Shield Mining works.
On top of risk assessors earning NXM for staking on Rari Capital smart contract coverage, they can earn $RGT through the proposed shield mining program. To incentivize our shield mining program I propose we allocate up to 20,000 $RGT tokens. The goal is to optimize for a reward rate of 2.5% (0.05 RGT/NXM staked), which at 100k NXM staked would yield about 12 weeks of campaign length if we were to distribute 20,000 $RGT. The 2.5% is on a weekly basis, so would be 100% annualized for protection against the Rari Capital Protocol.
This 20,000 RGT number is my initial idea based off of my calculations, but I would like to hear all of your thoughts before this moves to a vote.
For: Engage in Shield Mining using RGT
Against: Don't do anything