DeFi insurance grew in 2022 to include nearly two dozen providers

Share This Post

Last year was pivotal for decentralized finance (DeFi), particularly in the insurance sector, where a new report suggests that $34.4 million was given out in DeFi insurance claims.

Overall, the industry in 2022 saw on-chain DeFi insurance providers sell 19,839 policies, with 552 claims and 379 payouts to date, according to data published on March 20 via OpenCover, an organization that works with a variety of DeFi insurance providers to produce the report.

In the last nine months, the organization tracked 3,434 cover purchases, with 80 new claims and 234 payouts, following increased demand after notable events in crypto, such as the FTX collapse.

According to the report, the leading attack vectors include protocol logic and infrastructure, which accounted for 78% of losses.

However, this amount is a pittance compared to the estimated $3.8 billion lost in various exploits and hacks from last year. Still, new data suggests that DeFi insurance may a trend worth watching.

DeFi Insurance

Despite the marked uptick in demand for DeFi insurance, only 151,000 ether ($231 million) worth of active risk cover was underwritten, constituting just 0.5% of the $48 billion total value locked (TVL) in DeFi, the report said.

Additionally, the report also stated that the value of potential claims decreased by 44% and 58% in USD and ETH terms, respectively, over the past nine months, a decrease in claim size despite the fact that in relative terms, scams across crypto and DeFi have been occurring with greater frequency and more financial damage.

Insuring larger exploits

With the DeFi insurance industry paying out a record $34.4 million in claims in 2022, led by claims stemming from the TerraUSD (UST) and FTX collapse, it appears targeted attacks are seeing an uptick all over crypto, the report found.

Insurance can protect users from risks beyond their control, the report claimed, with coverage providing cover losses due to hacks and other vulnerabilities.

The report’s data, available in full here, was based on a consortium of industry DeFi insurance providers, including  Nexus Mutual, Unslashed Finance, InsurAce, Chainproof, Sherlock, Neptune Mutual, Risk Harbor, InsureDAO and Ease.

The post DeFi insurance grew in 2022 to include nearly two dozen providers appeared first on CryptoSlate.

Read Entire Article
spot_img

Related Posts

Wyckoff ‘SOS’ Could Catapult Bitcoin To $100,000: Hedge Fund Manager

Charles Edwards, founder of the Bitcoin and digital asset hedge fund Capriole Investments, published a detailed examination of Bitcoin’s current market phase suggesting a bullish trajectory,

Coinbase sees third-largest Bitcoin withdrawal in a year with $1.1 billion moved in a day

Quick Take Coinbase exchange witnessed a massive withdrawal of approximately 16,100 BTC, valued at $11 billion, on March 28 According to data from Arkham Intelligence, this substantial outflow

Developing Several Layer-2 Solutions: ‘The Real Solution’ to Ethereum’s Scalability Issue, Says Ken Timsit

The recent surge in Ethereum gas fees can be attributed to the rise in decentralized finance (defi) activity and the growing popularity of layer 2 (L2) chains such as Arbitrum and Optimism, Ken

“Exceptionally High” MicroStrategy Share Price Is Driven By Debt-Financed BTC Holdings, Investment Firm Says

MicroStrategy’s share price, which is mainly driven by its Bitcoin (BTC) holdings, is “exceptionally high“ and “unjustifiable,” argues investment firm Kerrisdale Capital Investors have

Meme Coin Traders Jump on New SBF Meme Coins As FTX Founder Gets 25-Year Prison Sentence

Meme coin traders reaped big from newly launched meme coins capitalizing on the sentencing of FTX Founder, Sam Bankman-Fried US Judge Lewis Kaplan sentenced SBF

Meme Ai Price Prediction: MEMEAI Surges 15%, But Analysts Say This 2.0 Meme Coin Might 100X Again

The Meme Ai price jumped 15% to trade for $00095 as of 03:40 EST time With this surge, the MEMEAI token has merited the trending
- Advertisement -spot_img