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Real World Insurance Vault

The Real World Insurance Vault (“RWI Vault”) allows sophisticated investors to earn yield on their USDC.

The Vault is deployed on Ethereum mainnet with infrastructure based on the ERC-7540 standard. The underlying returns are sourced by providing solvency capital and reserves off-chain to back regulated insurance policies.

The yield earned by depositors consists of two components:

  • All deposits into the RWI Vault earn a fixed Baseline Yield that accrues programmatically over time and is protected by Nexus Mutual Cover. The current Baseline Yield can be found on the app.
  • Additional bonuses may be earned by locking deposits for longer periods, allowing depositors to participate in excess returns generated by the underlying insurance business.

The RWI Vault is designed as a long-term, allocate-and-hold investment, targeting capital commitments of approximately 18–24 months. These timelines match typical insurance product cashflow emergence.

In return for USDC deposits, the Vault issues the RWIV token, which increases in value at the Baseline Yield over time. While direct onchain interactions with the Vault are limited to approved sophisticated investors, the RWIV token itself can be freely transferred and used in other onchain financial applications.

The Vault operations are managed by the Vault Operator (“VO”). The Vault Operator’s role is to act as the coordinator between all parties participating in the RWI Vault — depositors, Insurance Partners and Nexus Mutual.

Relationship to Nexus Mutual​

The RWI Vault is owned and operated by the members of Nexus Mutual and ties in with the Mutual in several ways:

  • Interaction with the Vault is available via the existing Nexus Mutual application
  • Nexus Mutual provides Cover to protect the fixed Baseline Yield of the RWI Vault
  • The Mutual participates in excess returns via a profit share mechanism
  • As the ultimate owner of the Vault’s legal entity, the Mutual benefits from the residual operating margin of the Vault Operator (VO) after meeting all obligations.