The imperative need for crypto-insurance & the CoverCompared solution to it all!
The cryptocurrency market keeps on growing and attracting more and more people each day — it is now worth more than $3 trillion. While that number sinks in, we should mention that major global companies are also showing interest and investing in crypto-based assets. It shouldn’t be a surprise that in the near future, cryptocurrencies will be widely accepted as a mainstream payment method.
Yet, crypto wallets and exchanges are still causing doubts. Hackers constantly look for possible flaws in Smart Contracts and don’t hesitate to exploit them. More than $12 billion has been lost in DeFi applications in 2021 — $10.8 billion of which is attributed to fraud and theft, a 600% increase from 2020.
These vulnerabilities and other risks have set the ground for insurance providers to start offering coverage for crypto-based assets. Nexus Mutual provides Yield Token Cover, protection against yield-bearing token de-pegging & this Yearly Yield Token cover rates of Nexus Mutual range between 2.60% and 3.51%. Protocol Cover is a protection against any hack on a specific protocol. Yearly Protocol cover rates range between 2.60% and 84.95% depending on the protocol. Custody Cover offer protection against halted withdrawals and haircuts on funds stored on centralised exchanges. Yearly Custody coverage rates range between 2.60% and 42.66%.
InsurAce also currently offers coverage for:
Smart contract vulnerability risk coverage with rates ranging from 2.50% to 28.75% annually.
Custodian risk coverage for an annual cost of 5% across different exchanges.
Defi’s promise of making financial markets accessible to the masses is being realized as we discover new opportunities that can revolutionize finance every passing day. At CoverCompared, you get a one-stop solution to purchase smart contracts & crypto exchange covers at a much cheaper rate than on any other platform. Users can also enjoy 25% discount on all policies when purchasing using $CVR.
Users are still hesitant to go forward with the purchase of policies at such discounted rates as the gas fees levied is incredibly high. CoverCompared is the first-ever platform that allows users to engage in gasless transactions to purchase insurance policies. These different smart contract covers & crypto exchange covers have become very imperative with the rise in the use of cryptocurrency and we provide a platform where users can finally purchase these coverages at cheaper rates than any other platform could offer.
CoverCompared is the First DeFi insurance marketplace for the global crypto ecosystem. We aim to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products bought using a host of cryptocurrencies.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life, and travel policies. The platform will include a frictionless insurance marketplace experience that incorporates next-generation blockchain technology and tokenized incentives.