Decentralised insurance recently has become one of the trending issues in the insurance and business sectors. While multiple articles are attempting to explain what DeFi involves, the Defi community does not frequently talk about insurance.
DeFi is a sector with a huge opportunity to offer confidence to investors and ensure the protection of their assets. Of course, insurance is known as a risky financial activity, which needs strategies and approaches to safeguard businesses against potential risks. Currently, the DeFi sector is worth billions of dollars and experiences multiple cases of shady and fraudulent activities.
DeFi insurance protocol
InsurAce is one of the leading DeFi insurance protocols. It has recently launched multi-chain insurance services on its Ethereum and Binance Smart Chain dApps to provide insurance coverage services to blockchain and protocol platforms.
InsurAce describes itself as the first protocol to offer multi-chain insurance services to protect DeFi projects and investors.
Despite the significant growth of the Ethereum blockchain network, several risks are associated with the deployment of DeFi platforms. For instance, in early June this year, Spartan protocol, a famous liquidity protocol on Binance Smart Chain (BSC), was hacked and consequently experienced a huge loss of an estimated $30 million, a crime committed through a flash loan attack.
Therefore, InsurAce recently introduces its business majorly to address such risks being experienced in the DeFi protocols and projects.
Benefits of InsurAce DeFi insurance protocol
InsurAce provides DeFi insurance services and products to protect against risks being encountered in the cryptocurrency sector. The DeFi insurance protocol provides coverage insurance services against IDO event risks, custodian service risks, smart contract vulnerability, and other risks facing the crypto sector.
InsurAce offers services and products in a multi-chain environment (multi-chain insurance coverage services to the crypto sector).
Such insurance services and products are necessary for the safety and growth of the entire DeFi and the cryptocurrency industry.
Although DeFi has been enabling protocols and projects to thrive exponentially, there have been cases of multiple risks that have made DeFi founders and users lose billions of dollars.
In 2020, there were over 15 hacking incidents that caused losses worth over $150 million. However, such incidents continue taking place even this year, and the rate of such cases is alarming and worries a lot. Recently, a hacking incident breached BSC (Binance smart chain) network and consequently caused losses worth $60 million to users. Such risks continue to cause significant losses to clients who are taking advantage of the DeFi revolution and adversely affecting the growth of the DeFi ecosystem.
Insurance plays a crucial role in protecting customers’ assets and safeguarding the operations of DeFi protocol projects. Customers can utilise insurance to give coverage of their assets while enjoying the DeFi landscape’s benefits.
Protocol owners can get a sigh of relief by protecting their pools through getting insurance services, which is the value that InsurAce offers. With such efforts and commitments, the protocol makes the DeFi environment a safer landscape where people do business and consumers make money.
DeFi Insurance Application
Traditional insurance companies are known for providing centralised insurance services, but such are different from decentralised DeFi insurance.
Defi insurance protocol offers various benefits that users can take advantage of as they seek to grow their assets. Of course, the benefits of the protocol are several. For example, accessing the DeFi insurance protocol is straightforward and permissionless. Users only require to sign up for a cryptocurrency wallet to get the insurance services and thus enjoy protection coverage for their assets.
Besides that, Defi insurance services are developed with smart contracts running on a public blockchain, which offer various benefits such as transparency, protection, and privacy. InsurAce built its insurance solution linked to collaborating with Defi protocols quickly and seamlessly.
Users can buy coverages for their assets using Ether and other cryptocurrencies on the Ethereum blockchain. Investors from any part of the world can access InsurAce to protect their assets in the Defi environment.
InsurAce is a community-driven insurance protocol that has robust support from the Defi community. Since the protocol understands issues facing the community, it develops things for the community and receives support from the community.
Based on such considerations, InsureAce thought differently to develop its protocol in a decentralised way.
The company’s multichain insurance services ensure assets being offered by protocol chains like Fantom, HECO, Polygon, BSC, Solana, and other protocols running on the Ethereum network.
The commitment to protect funds against losses is one of the benefits that decentralised insurance offers. As highlighted above, InsurAce is one of the major platforms that provide such insurance services to investors.
Decentralised finance is regarded as a secure place, but a solution to hacking, thefts, and other fraudulent activities in DeFi projects is necessary.
The existence of DeFi insurance, which is simplified with low cost, immutable, decentralised, transparent, and offers the liquidation of crypto assets.