Decentralised Insurance as a Standard Metric for DeFi Protocol Legitimacy
A common feature of most revolutionary technologies is the need for constant improvements and fine-tuning until the finished product is done–which is an often continuous process. The version of the airplane invented in the early 20th century is not what is in use today. Likewise, blockchain technology and crypto are constantly the subjects of tons of research and improvements.
In the early days of crypto, there were very few standards of safety in place. Bitcoin was founded by Satoshi Nakamoto in 2008, but the first cold wallets were never made until Trezor came up with their flagship wallet five years later. Similarly, KYC measures for crypto exchanges only became mandatory after regulatory bodies recognized these exchanges as Money Service Businesses (MSBs). Today, more safety measures are in place, including the doxxing of team members and the publishing of audit reports as measures to prove the legitimacy of protocols.
Needless to say, the safety and security of a protocol has become the top priority for investors — indeed, most investors looking to invest huge sums into protocols check off safety and security first above all else.
In spite of the increasing premium paid to security, the frequency of cyberattacks, including hacks and thefts, has skyrocketed. Data from Blockworks show that as of the end of H1 2022, cyberattacks had wiped off almost $2 billion of investors’ funds, with these attacks projected to greatly exceed the $3.2 billion wiped out throughout 2021. In spite of the increasing attention to security, malicious actors continue to have field days operating as they wish.
As more proactive measures are being implemented, it is becoming evident that the ultimate proactive measure to protect users, while increasing on-chain safety infrastructure is Insurance. With the advent of crypto insurance, only DeFi protocols that offer insurance to its investors will have a comparative advantage over their competitors, as these investors will be looking to invest in protocols that can insure their investments.
Championing this advent of insurance in crypto is Uno Re.
What Is Uno Re?
Uno Re is the world’s first decentralized insurance and reinsurance platform, offering insurance packages for investors looking to invest in DeFi and web3 protocols and the protocols themselves, while also allowing the community to invest and trade in ‘risk’ and receive sizable returns on their investments.
Uno Re is primarily concerned with giving investors the upper hand with respect to their assets. It is concerned with taking away the apprehensiveness that comes with a likely attack on a protocol at any moment, replacing it with the investor confidence that comes with the insurance of their assets.
Bottom Line
Despite the safety and security measures we have seen in recent years taken by both protocols and investors, these hacks and exploits have still occurred, if not at a greater frequency. Undoubtedly, with insurance programs, the losses incurred as a result of these hacks would have been far lesser.
With Uno Re, several partnerships and insurance offerings are sure to protect investors against cyberattacks, giving them the confidence they need to reach their investment goals.
About Uno Re
Uno Re is the world’s first decentralised insurance and reinsurance platform, allowing the community to invest and trade in ‘risk’ and receive sizable returns on their investments in one of the safest asset classes in the world. We have over $3.7M in active coverage across various crypto protocols, and have underwritten risk for over 100 protocols on our B2C Insurance Sales dApp — The Cover Portal.
