Why does Web3 require DeFi Insurance?
Web3 has introduced a new age to the ongoing technology revolution with more and more users curious to explore this brand new digital world. However, threats still loom largely over the DeFi space despite the various security methods introduced.
With Web3, we will get all the benefits of the internet, but with more privacy and a blockchain-based architecture that makes our data safer than before. But to what extent does the security measure imposed guarantee safety to users?
The first quarter of 2022 saw a loss reported to be close to $1.3 billion with much of it still not recovered. This is a 695% spike from the losses reported in all of 2021.
Cybercriminals hacked projects in the Binance Smart Chain ecosystem 14 times, accumulating nearly $100 million in losses. The Ethereum ecosystem suffered 16 hack events in the 2021 and 18 breaches 2022 first quarters.
Although Web3 will be introducing a plethora of advantages for users to leverage, there are still prominent flaws that need to be addressed.
The safety of this blockchain technology might be questionable to many but a simple solution exists through DeFi insurance.
As the Defi space gains more traction and more and more investors become curious about the blockchain technology, this also brings in a significant amount of hackers who are on the lookout for loopholes to gain millions of innocent users.
Since the crypto world is still in the stepping stone stages, there is no stringent regulatory framework or laws in place that could put a potential fear in hackers. Instead of constantly being apprehensive about your investments within the DeFi space, taking out insurance on these digital assets (similar to insuring your traditional personal belongings) could save you millions in case of an unprecedented event.
Enter CoverCompared!
We are revolutionizing the DeFi playground by providing assurance for all your safety concerts through our wide variety of crypto exchange and smart contract covers that offer protection for assets across 10+ different chains.
As a DeFi insurance aggregator, we help eliminate the unnecessary time and effort of searching out the perfect insurance policy for your assets but rather offer one platform to get all your crypto-insurance needs (as well as a few traditional insurance needs) covered.
Use our native token $CVR to get a 25% discount with the added bonus of no gas fees via our dApp (overcompared.com)
About CoverCompared
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.
