# Wrapped NXM (WNXM)

**Rank:** #397
**Type:** Token
**Source:** [View on Coinpaprika](https://coinpaprika.com/coin/wnxm-wrapped-nxm/)

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## About

### What is Wrapped NXM?

Wrapped NXM (WNXM) is a type of cryptocurrency that represents a wrapped version of the NXM token, originally launched by Nexus Mutual. It was created to provide liquidity and broader accessibility to NXM, which is primarily used within the Nexus Mutual platform for decentralized insurance. WNXM operates on the Ethereum blockchain and adheres to the ERC-20 token standard, enabling it to be freely traded on various decentralized exchanges, unlike the original NXM, which has restrictions based on membership and KYC requirements.

The primary role of the WNXM token is to facilitate trading and increase liquidity, allowing users to buy and sell NXM without the constraints of the Nexus Mutual platform. This makes it significant for users who wish to participate in the Nexus Mutual ecosystem without undergoing the membership process. Wrapped NXM stands out for its ability to bridge the gap between the Nexus Mutual's native token and the broader DeFi market, enhancing the token's utility and accessibility.

### When and how did Wrapped NXM start?

Wrapped NXM originated in July 2020 when the Nexus Mutual team introduced it as a way to increase the liquidity and usability of the NXM token outside the Nexus Mutual platform. Wrapped NXM (wNXM) is an ERC-20 token that represents NXM tokens in a wrapped form, allowing them to be traded on decentralized exchanges like Uniswap.

The project did not involve a separate whitepaper or testnet, as it was an extension of the existing Nexus Mutual ecosystem. The mainnet deployment of Wrapped NXM coincided with its introduction, as it leveraged the existing Ethereum blockchain infrastructure. The initial distribution of Wrapped NXM was not conducted through an ICO; instead, it allowed existing NXM holders to wrap their tokens into wNXM, providing immediate liquidity and broader trading options. This development was pivotal in enhancing the accessibility and trading flexibility of Nexus Mutual's native token.

### What’s coming up for Wrapped NXM?

As of the latest updates, there are no specific upcoming milestones officially confirmed for Wrapped NXM. Wrapped NXM is a tokenized version of Nexus Mutual's NXM token, enabling broader accessibility and trading on decentralized exchanges. While Wrapped NXM itself doesn't have a separate roadmap, developments in the Nexus Mutual ecosystem could indirectly impact it. Users should stay informed through Nexus Mutual's official communication channels for any changes or upgrades that might affect Wrapped NXM's functionality or integration. It's important to monitor these channels for announcements regarding new features, protocol upgrades, or governance decisions that could influence Wrapped NXM's future trajectory.

### What makes Wrapped NXM stand out?

Wrapped NXM stands out primarily due to its unique architecture that facilitates seamless interaction with the broader Ethereum ecosystem. As an ERC-20 token, Wrapped NXM allows users to trade and hold NXM tokens without the requirement of KYC verification, which is mandatory for direct NXM interactions on the Nexus Mutual platform. This design enhances liquidity and accessibility, making it easier for users to engage with decentralized exchanges and other DeFi platforms.

The wrapping mechanism of NXM into Wrapped NXM provides a bridge between the Nexus Mutual ecosystem and the wider Ethereum network, offering flexibility and increased utility for NXM holders. Furthermore, Wrapped NXM benefits from Ethereum's robust security and established infrastructure, ensuring reliable performance and integration capabilities. This combination of accessibility, enhanced liquidity, and integration potential positions Wrapped NXM as a distinctive asset within the DeFi landscape.

### What can you do with Wrapped NXM?

Wrapped NXM (WNXM) is primarily used to facilitate broader trading and liquidity for NXM, the native token of the Nexus Mutual platform, by making it compatible with decentralized exchanges on the Ethereum network. As an ERC-20 token, WNXM allows users to trade it on platforms that do not natively support NXM, thereby increasing accessibility and liquidity. 

Holders of WNXM can also convert it back to NXM on the Nexus Mutual platform to participate in governance, where they can propose and vote on decisions affecting the mutual. Additionally, by converting to NXM, users can stake their tokens to underwrite insurance risks, contributing to the security of the mutual and potentially earning rewards. Developers can integrate WNXM into decentralized finance (DeFi) applications, expanding its utility within the broader Ethereum ecosystem. The token is supported by various wallets and decentralized exchanges, making it versatile for users and developers alike.

### Is Wrapped NXM still active or relevant?

Wrapped NXM remains active with ongoing trading on various cryptocurrency exchanges, reflecting its continued market presence. The token, which represents a wrapped version of Nexus Mutual's NXM, is integrated into the Ethereum ecosystem, allowing for broader DeFi interactions. Recent data shows that Wrapped NXM is still listed on major exchanges, ensuring liquidity and accessibility for users.

Development activity and governance updates from Nexus Mutual, the underlying project, indirectly affect Wrapped NXM's relevance. As of the latest updates, Nexus Mutual has been actively engaging in governance proposals and community discussions, which can influence Wrapped NXM's role in the ecosystem. These factors underscore Wrapped NXM's continued relevance, particularly for users interested in decentralized insurance solutions and DeFi applications.

### Who is Wrapped NXM designed for?

Wrapped NXM is designed primarily for cryptocurrency traders and investors who are interested in engaging with the Nexus Mutual ecosystem without the need for KYC (Know Your Customer) verification. It allows users to trade and hold NXM tokens in a wrapped form on decentralized exchanges, enhancing liquidity and accessibility. This provides traders with greater flexibility and ease of access to the Nexus Mutual platform's benefits, such as participating in governance and earning potential rewards.

Secondary participants include liquidity providers who can supply Wrapped NXM to decentralized exchanges, contributing to the token's market depth and stability. By engaging in these activities, both primary and secondary users help bolster the ecosystem's growth and resilience. Wrapped NXM thus serves as a bridge for users seeking to leverage Nexus Mutual's offerings while maintaining the convenience and privacy of decentralized finance platforms.

### How is Wrapped NXM secured?

Wrapped NXM is built on the Ethereum blockchain and utilizes the security model of the underlying Nexus Mutual protocol, which operates on a Proof of Stake (PoS) consensus mechanism. Validators in the Nexus Mutual network are responsible for confirming transactions and maintaining network integrity. They are required to stake NXM tokens, aligning their incentives with the network's security as they can earn rewards for honest participation or face slashing penalties for malicious actions.

The protocol employs cryptographic techniques, such as Elliptic Curve Digital Signature Algorithm (ECDSA), to ensure authentication and data integrity. Wrapped NXM benefits from the robust security of the Ethereum blockchain, which includes regular audits and a strong community governance process to address vulnerabilities and ensure resilience. These layers of security, combined with the economic incentives for validators, contribute to the overall security and trustworthiness of Wrapped NXM transactions.

### Has Wrapped NXM faced any controversy or risks?

Wrapped NXM has faced certain risks primarily related to its underlying asset, NXM, which is associated with the Nexus Mutual protocol. One notable risk involves the dependency on the security and governance of Nexus Mutual, which has been subject to scrutiny due to its decentralized insurance model. Wrapped NXM itself hasn't been directly involved in major controversies, but the broader ecosystem has encountered challenges such as smart contract vulnerabilities and the inherent risks of decentralized insurance. 

The Nexus Mutual team addresses these risks through regular security audits and by maintaining a robust governance system that allows members to propose and vote on changes. Additionally, the project employs a continuous risk assessment strategy to identify and mitigate potential vulnerabilities. As with most blockchain projects, ongoing risks include market volatility and regulatory changes, which are managed through proactive community engagement and transparency in operations.

