Proposal: Add arNXM and ARMOR as collateral asset on CREAM Ethereum with 60% collateral factor
Voting objective:
For: add ARMOR and arNXM to the Cream whitelisted tokens with a collateral factor of 60%.
Against: do not add these to the Cream whitelisted tokens
Quorum needed: 15,000 CREAM
The Armor ecosystem: DeFi cover, reimagined.
Project Website: http://armor.fi/
Project Documentation: https://armorfi.gitbook.io/armor/
Armor is a coverage broker for DeFi, that offers PAYG coverage for smart contract bugs and attacks. All Armor coverage is underwritten by Nexus Mutual.
The benefit to the DeFi ecosystem and its users is that Armor coverage is:
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Permissionless (Nexus requires KYC), and
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Flexible with regard to coverage amounts and policy duration (“Pay as you Grow”).
The arCore Smart Cover System tracks user funds and allows cover that is based on the exact holdings, while being billed per second with no cancellation period.
The upcoming arShield product offers LP/Staking coverage that is paid directly from the LP/Staking rewards, offering secure staking for liquidity providers without any upfront costs.
arNXM and Armor Tokens
There are two tokens associated with the Armor project, ARMOR and arNXM
- Armor is the governance token. A total of 1 billion ARMOR tokens are being distributed over two years 1: 65% to community members (including liquidity incentives, see note below), 35% to early team members with a 2-year vesting period.
The responsibilities for governance include:
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Voting on updates to smart contract code
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Voting on changes to constants used in the fee model (such as premium charge for buyers)
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Voting on the exact time a hack took place
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In addition, the token holders for the ArmorDAO may also vote to be given a share of the revenue made by the arCore Smart Cover and arShield systems.
- arNXM is the yield bearing token for the arNXM vault.
The arNXM Vault accepts the Nexus Mutual wNXM/NXM tokens and puts it to work to produce yield. This is done by unwrapping and staking the wNXM (or NXM) tokens in the Nexus Mutual ecosystem.
Upon deposit of wNXM/NXM, users receive arNXM in return. arNXM can be traded freely, just like wNXM, but it also accrues staking rewards. arNXM produces yield in terms of the underlying token. Holders will arNXM will enjoy:
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Additional yield from staking rewards (Currently ~40% APY)
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Price appreciation as the price of underlying assets appreciates (wNXM/NXM)
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Armor’s coverage for coverage providers’ for minimal risk staking
Armor in numbers
For detailed stats on Armor.fi (coverage, staking, premiums paid etc.), please visit: https://duneanalytics.com/armor/armorfi
Benefits for Cream
Access to Armor’s User Base
Armor brings along with it a vibrant community of 7,000+ community members, across different social media platforms.
The community is highly engaged as in a little over a month, Armor already surpassed $1 billion USD in total cover amount, which has paid out premiums worth ~$5 million.
As of now, our ArCore smart cover system offers coverage in over 70 assets. As we increase our coverage purview, it will further drive up our ecosystem’s utility.
Increased TVL for Cream
This proposal will allow the CREAM TVL to expand and will allow the Armor community to borrow other assets against their $ARMOR/$arNXM tokens.
By setting the collateral factor of ARMOR and arNXM at 60% by default, it will help drive liquidity and TVL to the protocol. This will allow Armor and all its active users to lend through CREAM and drive up demand for borrowing assets.
As of writing, ~418,000 wNXM is locked up in the arNXM vault. The arNXM:NXM ratio has increased from 1.0 to 1.04. This translates to an APY of ~26.9% annualized over the underlying asset (NXM). arNXM has several times more liquidity than wNXM on most DEXes too, and will soon have even more when added to Bancor. The arNXM Vault also accounts for over 40% of staked NXM on Nexus Mutual.
CREAM: Combining Coverage and Lending
Besides developing an Armor and arNXM lending market, there are more interesting initiatives that we could develop with the CREAM community. We see an exciting future where we could potentially combine lending and coverage. This could be a huge win-win for both ARMOR and CREAM since it will enable CREAM users to leverage coverage on all tokens they borrow/lend from/to the protocol.
As Armor’s coverage purview grows, this collaboration could provide an easier bridge for newer protocols to enter Cream’s lending pool. Lenders and borrowers could safely interact with these tokens, knowing that they are backed by Armor coverage.
Another interesting collaboration prospect that might interest the Cream community is to mint ArNFTs (Armor’s non-fungible token wrapper for Nexus Mutual coverage) using the tokens they borrow → stake them in our ArNFT Staking Pools and earn yield through Armor’s Smart Cover System and Shield Vaults. In simple terms, earn yield through the tokens you borrow.
Armor and Cream are both uniquely positioned to capture this important niche and collaborating will be smart and efficient.
Contract Addresses
ARMOR: 0x1337def16f9b486faed0293eb623dc8395dfe46a
arNXM: 0x1337def18c680af1f9f45cbcab6309562975b1dd
Available Audits
Armor smart contracts are audited by Haechi and Dedaub. Reports are available for review via the ArmorFi GitHub page: https://github.com/ArmorFi/Audits
Exchange Availability
The top exchanges for trading in ARMOR and/or arNXM are currently Hoo, Gateio, Uniswap (V2), Sushiswap, 1inch Exchange, and Balancer, according to CoinMarketCap.
Information, sources and socials:
Armor ecosystem documentation: https://armorfi.gitbook.io/armor/
Coingecko Armor: https://www.coingecko.com/en/coins/armor
Coingecko arNXM: https://www.coingecko.com/en/coins/armor-nxm
Medium: https://medium.com/armorfi
Twitter: https://twitter.com/armorfi
Telegram: https://t.me/ArmorFi
Discord: https://discord.com/invite/8HuTB22