Market Information

The world insurance marketplace generated $6.3 trillion in premiums in 2019.

Billionaire investor Tim Draper predicted the Total Crypto Market Cap (TCMC) could break $80 trillion in the next 15 years.

$80 trillion would be an 80x increase from today’s TCMC of just above $1 Trillion.

Based on DefiPulse the current Total Value Locked (TVL) in DeFi is $23.02 billion (Jan 14th '20) and it’s growing a lot faster than the current TCMC rate.

Ethereum adoption has been linear for the past few years, just reaching a total of 130 million addresses...

People are starting to understand DeFi is the future of Ethereum. DeFi users have been growing 10X since January 2020 and yet only represents 1% of total Ethereum addresses…

We believe at least 90% of the eventual $80 trillion market cap will consist of DeFi protocols.

This means DeFi could reach a total market cap of $72 trillion in the next 15 years and that would just be the start. Yet today…

DeFi applications are the most attractive targets to hackers that have ever existed.

The (largely open source) software can give hackers instant, very large, payouts that can easily be made untraceable.

We’ve seen enormous hacks on many different protocols and have been made painfully aware that users need the most protection possible.

Armor ensures — in the easiest manner to date — that protected funds a user held on a hacked platform will be compensated.

It’s a real concern to the majority of users, and a gap most DeFi protocols must cross to go from niche usage by innovators and early adopters to mainstream adoption by everyday people and institutions.

How Can DeFi Cross The Chasm?

Over the next 15 years as DeFi grows to $70 trillion market cap and beyond…

There are going to be a lot of experiments.

It already is and will continue to be a red ocean of competition.

This is the Great Cambrian DeFi Explosion.

Few will survive, but those that do will go on to become multi-trillion dollar DAOs and networks of contributors running the financial world of tomorrow.

Breakthrough products will emerge from the minds of the most creative financial engineers on Earth… their users will need coverage.

Networks we’ve never imagined may burst on to the scene and become a global favorite for days, weeks, months or years… their users will need insurance.

Game-changing protocols may be born, live fast and flame out faster… and their users will need insurance.

They will all battle for glory. Insurance will remain…

Just like Chainlink oracles will be needed by all developers…

Armor’s Smart Cover System will be needed by all users.

Asset protection is systemically important to the mass adoption of DeFi.

Competition and Market Potential

We all aim for secure and trustless environments.

Still at the core of asset coverage is knowing it’s secured by a known community who is there when you need it.

Fully Collateralized Coverage

All coverage is underwritten by Nexus Mutual who has a stringent risk policy with a proven track record plus deep capital pool availability to ensure assets are protected in case payouts are required.

Armor token holders who stake their ARMOR:ETH LP Tokens participate in governance, as well as reviews and approvals in the claim payouts process as a proxy for wNXM tokens delegated into the arNXM yield vault.

Profits are made by correctly pricing risk under what the coverage buyers price it at, and charging a premium to take on that risk.

Rather than competing…

Armor and Nexus Mutual have a symbiotic relationship essential to the mass adoption of DeFi through improved safety for users.

As DeFi grows to a $72 trillion market cap over the next 15 years…

There is an opportunity for a highly competent DAO to grow and capture up to and beyond $1.872 trillion (2.6%) in annual fees from premiums.

Armor and Nexus Mutual will join forces to secure and scale adoption.