DeFi insurance platform Nexus Mutual updates its exposure to M11 Credit's wETH lending pool on Maple Finance. It expects to take a loss of around 2,461 $ETH (approximately $3 million) on the Orthogonal Trading loans. This represents 1.6% of Nexus' assets.
Nexus Mutual has now begun withdrawing all available funds from the M11 Credit pool on Maple. There is a 10-day waiting period before any capital can be withdrawn.
In addition, Nexus Mutual has indicated that this development does not impact its day-to-day operations or the ability to pay claims. Expected losses represent an estimated 1.5%-2.6% of the mutual’s assets.
Previously, Orthogonal Trading defaulted on eight loans totaling $36 million on lending protocol Maple Finance. The defaults represent about 30% of active loans across the entire protocol. The majority of the defaults (about $31 million) are in the M11 USDC pool, run by a separate company called M11 Credit. The remaining $5 million (17%) is in Maven's M11 wETH pool.