# Aligned Incentives ### Nexus Mutual and Armor Since all insurance is underwritten by Nexus Mutual, the success of ARMOR directly translates into success for Nexus. Increased staking and sales through ARMOR will drive symbiotic growth of both ARMOR and Nexus. ### Armor Users and Armor The Armor treasury acts as collateral to provide insurance for the insurers. As the armor treasury grows, the size of coverage it provides will also increase, and the stakers' investment will become safer. The success of armor directly makes the users' investments safer. ## Protocol Coverage Sellers ### arNFT Pool Stakers Mint and stake arNFT tokens with arCore to earn yield from users who purchase pooled coverage. Earn $ARMOR tokens as rewards too. ### arNXM Vault Stakers Deposit wNXM tokens, receive arNXM tokens in return. ARMOR automatically maximizes yield by optimizing staking. In the case of a loss from a successful claim on a particular contract, the funds are withdrawn from the overall capital pool - this reduces the loss a user would experience if they were staking on a contract themselves. Earn $ARMOR tokens as rewards too. ## Smart Coverage Buyers Buy coverage recommended through the Smart Cover System and earn $ARMOR rewards for utilization of the protocol. ## Performance Rewards Pool All token rewards accrued from Liquidity and Utilization Rewards are issued as $ARMOR tokens. The goal is to generate a high standard of performance and better distribute the token to governance holders and DAO participants for the future of ArmorDAO. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://armorfi.gitbook.io/armor/usdarmor-token/aligned-contributor-incentives.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.