Decentralized finance (DeFi) is one of the most impactful innovations in the global crypto markets, enabling crypto traders and investors to earn double/triple-digit yields on their holding.
However, using DeFi applications comes with its own share of risks, with protocol hacks being relatively common. In 2021, over USD 12bn was lost as a result of DeFi hacks. This is why DeFi insurance is starting to play a bigger role in the space.
Decentralized insurance was created to make the DeFi markets safer for investors.
Decentralized insurance is a product similar to traditional insurance that protects a buyer from a potential financial loss that can be caused by a range of possible events. Some DeFi traders even buy insurance as a hedge against market volatility and to secure their profits.
DeFi insurance policies are often valid for a specific period, and users are rewarded for claimable losses that occur within the validity period.
Read on to discover a list of DeFi insurance protocols that provide users with coverage against various losses on decentralized finance applications.
InsurAce is a decentralized insurance protocol that aims to provide DeFi insurance services to users who use DeFi applications. It promises to protect users from security risks with user-friendly products carrying low premiums.
Anyone with a self-custody wallet like MetaMask or Trust Wallet can purchase covers simply by connecting their wallet to the InsurAce app. InsurAce offers portfolio-based and bundled covers with different pricing methods allowing users to insure all of their DeFi assets in one place instead of through multiple protocols and several transactions. The know-your-customer (KYC) process is not required.
InsurAce provides coverage for
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