Nexus Mutual Updates Exposure to M11 Credit's wETH Lending Pool on Maple Finance

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 There is a 10-day waiting period before any capital can be withdrawn.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.