What is DeFi insurance? Why do we need it?
DeFi Insurance is insurance that protects crypto assets and covers risks according to the coverage agreement. It covers the loss of investors’ funds or crypto-assets due to hacking, cyber-attacks, or any other exploits taking place in the DeFi space.
In the decentralized finance (DeFi) market, insurance may need to play an even more prominent role. DeFi insurance came into existence to help protect investors and providers in the event of a hack or other fraudulent activity.
DeFi as a concept utilizes blockchain technology, meaning, unlike other traditional financial bodies, it isn’t controlled by a single, central source. Its decentralized model is vital as centralized systems can limit the efficiency of a protocol. A centralized system is less transparent and has more control over users’ assets.
2021 shows massive growth in the adoption of DeFi or Decentralized finance, encouraging reinvention in the Fintech industry. Its rising popularity has become a target for hackers and opportunistic profiteers.
According to crypto research company Messari, DeFi protocols have lost about $284.9 million to hacks and other exploit attacks since 2019.
Why do we need it?
Even though blockchain technology on its own provides a considerable barrier against errors and fraud.
DeFi insurance can provide a valuable hedge if you’re uncomfortable with the amount of risk you assume in the DeFi space. Considering some of the substantial hacks that have impacted the digital asset world, an extra layer of protection is essential to protect your digital assets from malicious attacks.
PolkaCover is the first decentralized insurance marketplace offering both traditional and crypto insurance products.
Our vision at PolkaCover is to give the power back to the people by lowering insurance policies and coverages’ transactional and administrative costs. Additionally, we aim to offer high value cost-effective traditional and crypto insurance products. Soon our users will receive global access to purchase innovative insurance products through our one-stop-shop marketplace.
Polkacover 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 for the crypto world.
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.