Project Update | 2021.1.22

Mutual DAO System (MDS) is the first global mutual aid system based on blockchain & smart contract, which also leverage DAO (Decentralized Autonomous Organization). It combines the traditional mutual insurance model with blockchain and smart contract which provide a low operation cost and guarantee of compensation for risks.

The investment institutions of MDS include well-known blockchain VCs such as Fenbushi Capital, Danhua Capital, Fundamental Labs and etc.

We gratefully thank all the community friends and MDS fans that the project could not go far without your support and trust. MDS project focuses on long-term development, and our community will always follow the principle of fairness and transparency. We biweekly release our project updates in form of the following progress journal:

MDS DeFi Insurance Contract


MDS Mutual Pool 1 – DeFi Mutual Insurance Contract

Any DeFi user can buy MDS from Uniswap, then join this pool through Metamask or other Ethereum wallet. The contract will cover below DeFi contracts including MakerDAO, Compound, Uniswap, Aave,

Tech Spec:
MDS 2.0 White Paper –  Mutual DAO

Insurances Provide:
Based on the market research result, MutualDAO will focus on below:
MDS Mutual Pool 1 – Smart contract security issue coverage, v2 is in development which will add insurance policy value AMM logic
MDS Mutual Pool 2 – AMM LP token impermanent loss coverage

MutualDAO release DeFi hack event database, which listed the details of 24 security events in DeFi area and will be an important data input for DeFi insurance actuarial

MDS Governance

MutualDAO listed on snapshot, all MDS holder and vote the proposals there
Snapshot is a off-chain, gasless, multi-governance community polling dashboard used by many DeFi projects.

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Blockchain Insurance Trends

On 14th December, Hugh Karp the founder of DeFi insurance project Nexus Mutual was targeted and tricked into making transaction on the attacker’s address of Metamask, this resulted in the loss of 370,000 NXM tokens, valued at approximately $8.33 million. On 28th December, Cover Protocol, another star DeFi insurance project, was also exposed to a hacker attack, the hacker used contract bugs to issue more than one trillion tokens and then burned a large number of them. Finally, the attacker sold the tokens in batches through DEX for cash, making a profit of more than 4400 ETH, worth more than 3 million US dollars.

The original intention of DeFi insurance is to provide protection for DeFi project and reduce risk-related loss. However, two popular DeFi insurance projects were frequently attacked by hackers due to their own vulnerabilities, leading to the loss of confidence in DeFi insurance projects, and people even began to question whether DeFi insurance could function as real insurance? This is an issue that all DeFi insurance projects should seriously consider and solve.

At present, more and more DeFi projects with insurance functions or modules are advertised, which has become one of the new direction of DeFi. We believe it is necessary to illustrate the fundamental concepts of insurance so that DeFi players can have a clear understanding of DeFi insurance.

The insurance operates over risk. In traditional insurance theory and practice, risk only refers to the uncertainty of loss. This means that once the risk occurs, it can only be considered as a loss, and there is no chance to gain profit from the risk. In that sense for Nexus Mutual, user could file a claim if the digital assets of the DeFi project it insured were hacked due to a contract bug. The risk of a hacking attack would normally result in the loss of digital assets, rather than the profit for insured person. This is the definition of risk in traditional insurance industry.

In addition, there is another definition of risk, that is, the uncertainty of income. This means the consequences could be losses, gains, or no losses and no gains. For example, the risk of price fluctuation after purchasing BTC, if the price of BTC rise, the buyer will gain profit; if the price drops, the buyer will suffer losses. This type of risk is not included in the business of traditional insurance. In the traditional finance field, financial derivatives such as options are used to hedge the risk of underlying price fluctuations, so this kind of solution is generally categorized under financial derivatives, rather than insurance. The similar example in DeFi is OPYN, which provides risk protection to users through put options to cover the loss from the crypto fluctuation. Strictly speaking, such projects should not be called insurance. In addition, there are market forecast, CDS and other financial models serving the same purpose.

MDS Token Info

Total: 2,000,000,000
Total Circulating: 1,199,999,624

Data Source:


MDS Telegram Group


项目进度报告 | 2021.1.22


Mutual DAO System (MDS) 是世界上第一个基于区块链智能合约的互助系统,通过 DAO 自组织的形式实现更高效的互助保障(互助保险)平台。基于区块链接技术提供相互保障智能合约创建和使用平台,有效降低保障产品的运营成本,同时提供更高的保障资金安全性。MDS 的投资机构包括分布式资本、丹华资本、Fundamental Labs等著名区块链VC。

MDS 的发展离不开社区用户的支持与信任,我们对此表示由衷地感谢。我们专注于项目的长期发展,秉持公正透明的社区原则,以进度报告形式定期展示项目各方面进度,以下为最近一段时间的进度更新报告。

DeFi 合约保险开发


MDS Mutual Pool 1 – DeFi 合约安全保障互助

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用户可以通过Uniswap购买MDS,并通过任意以太坊钱包参与,保障覆盖如下几个主流的DeFi产品,包括 MakerDAO, Compound, Uniswap, Aave,

Mutual DAO 2.0 白皮书

MDS Mutual Pool 1 – 智能合约安全保障合约,新版正在开发中,将加入保单AMM定价逻辑
MDS Mutual Pool 2 – AMM LP token 的无常损失风险保障合约

MutualDAO 发布 DeFi 安全事件数据库


MutualDAO 上线 snapshot,支持通过 MDS 进行治理投票
snapshot是通过签名即可完成的治理投票工具,减少了参与用户的链上手续费,是 DeFi 项目使用最多的以太坊治理工具。

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12月14日,DeFi互助保险项目Nexus Mutual创始人Hugh Karp的钱包地址受到有针对性的攻击,被盗走了37万枚NXM,价值约833万美金。12月28日,另一个崭露头角的DeFi保险项目 Cover Protocol也被爆出遭遇黑客攻击,被利用合约漏洞增发超过万亿代币之后又大量销毁,最后攻击者通过DEX分批卖出代币套现,获利4400多ETH,价值300多万美元。
保险经营的核心是风险。风险在传统的保险理论与实务中,仅指损失发生的不确定性。这意味着风险一旦发生只能表现为损失,没有从风险中获利的可能性。举例而言,前文提到的Nexus Mutual,一旦所投保的DeFi项目上的数字资产因为合约漏洞被黑客攻击产生损失,就可以申请索赔。黑客攻击的风险,一般只会给投保人带来数字资产的损失,而不会使投保人从中获利。这是传统保险理论的风险范畴。

MDS Token 信息




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