Cryptocurrencies have boomed in recent years. As such, there is also an element of risk attached.
As the industry grows, along with it, comes the higher risk of potential hacks and violations. In 2021, approx $3bn of digital assets was stolen from various blockchain protocols. Only around 5% of this was protected by a form of insurance product. This has to change to deter potential hackers and also to solidify the safety of users’ digital assets.
So how can crypto investors protect their assets? The DeFi insurance offering from InsurAce.io might offer a solution. Check out our review below to find out if it’s worth using.
What is InsurAce.io?
InsurAce.io is a leading multi-chain insurance protocol. Launched in April 2021 on the Ethereum blockchain, it has since been developed on the BNB chain, Avalanche and Polygon networks. InsurAce offers 4 types of insurance protection for users to purchase coverage:
Smart contract vulnerabilities. If a smart contract contains an error, there’s no option to reverse it as the blockchain can’t be altered. Exploiting smart contract vulnerabilities is a common fraudster tactic.
Custodian risk. If the insured party is a user of a designated custodian and the custodian declares a major loss for investors or vanishes, this type of coverage can protect assets.
IDO event risk. This protects against fraudulent activity surrounding an IDO.
Stablecoin de-peg risk. A stablecoin is tied to the value of a fiat currency. If its relative value is switched down or de-pegged, stablecoin holders might suffer huge losses. This type of insurance protects against this eventuality.
Users purchase the right type of insurance for their holdings. It will depend on the protocol that they use but InsurAce.io also offers customed-bundled covers to allow users to protect against attacks on multiple platforms at the same time. . Holders of INSUR tokens, the governance token for the brokerage, have voting rights and the opportunity to earn rewards.
How Does InsurAce DeFi Insurance Work?
Users can browse through a list of protocols where insurance cover is available and choose the coverage type they want. The type of protection available will be dependent on the protocol and the risk involved. The most common type of DeFi insurance is smart contract vulnerability insurance. Custodian risk and stablecoin de-peg risk have several options each and are available in bundles, while IDO event risk has limited options.
DeFi Insurance Step-by-Step Guide
To create an account, users will need to:
- Go to the website’s homepage.
- Enter dApp (WebApp)
- Connect wallet
- Select “buy cover”.
- Choose the type of coverage you need.
- Purchase policies.
You can view and manage your policies on the app at any time.
Who Should Use InsurAce.io?
Anyone who wishes to protect their digital assets against potential attacks can use InsurAce.io. The list of protocols and networks covered is constantly growing and InsurAce aims to provide protection for everyone. Their latest V2 release saw a launch of multi-chain aggregators, dynamic pricing, cover cancellation and a public API key. DeFi insurance is a MUST rather than a SHOULD.
The costs of the policies is charged as a percentage of the protected assets. The cost is varied depending on the protocol that you want to cover. Each protocol has a limited capacity depending on the chain. These can be sold out fast depending on the popularity of the blockchain protocol. InsurAce regularly reviews these costs and each one is dependent on a successful risk assessment.
Who Created InsurAce DeFi Insurance?
Oliver Xie founded InsurAce DeFi Insurance in 2020 after identifying a need for greater protection in the crypto market. He formerly worked as CTO for a Singapore-based derivatives exchange.
What Makes InsurAce.io Unique?
DeFi insurance is needed for the mass adoption of web3. It’s basically a traditional finance option brought to the DeFi world. InsurAce.io is unique due to its multi-chain functionality. In 2022, the platform also received development grants from Harmony, NEAR, Polygon and Aurora. Unlike competitors, InsurAce.io is building to become the insurance protocol for all.
Oliver Xie has stated that he views himself as a coordinator rather than the person “in charge” of InsurAce DeFi Insurance.
InsurAce.io is an innovative platform that could provide much-needed security to crypto investors looking for better fraud protection. Launch InsurAce.io and browse policies, or opt to join the underwriting pool today.
Is InsurAce.io legit?
Yes – the platform is well-known and trusted.
What is DeFi insurance?
DeFi insurance offers coverage against fraudulent behavior in decentralized finance.
What is crypto-insurance?
Cryptocurrencies aren’t regulated or covered by most fiat insurers – companies like InsurAce.io are now offering these services.
What is the INSUR token?
INSUR is the governing token of InsurAce.io.