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Deep Dive into Prime dApps Cover Projects in Neptune Mutual’s Marketplace

The first cover creator in the Neptune Mutual marketplace has created a diversified cover pool called “Prime dApps,” a basket of cover products that provide parametric cover policies for some of the most popular DeFi dApps (decentralized Applications).

The Neptune Mutual parametric cover marketplace for blockchain projects went live on November 8th, 2022.

DeFi, CeFi, and Web 3 users can now take out cover policies that provide a layer of protection to safeguard their digital assets in the event of a smart contract hack.

Users can also participate in the marketplace as liquidity providers. This is when you supply liquidity to cover pools that provide underwriting capital for cover products on Neptune Mutual.

The very first cover pool on the Neptune Mutual is the Prime dApps Diversified Cover Pool.

Prime dApps Overview

Prime dApps is a collection of parametric cover products for seven top-rated DeFi projects — AAVE, MakerDAO, Uniswap, Curve Finance, Balancer Labs, Gnosis Safe, and Synthetix. These projects are relatively mature, with large TVLs (Total Value Locked) and they have relatively high levels of security.

Users of these dApps can purchase cover policies to provide cover for their digital assets with fast and reliable payouts to all policyholders should an incident arise and be validated by our incident resolution process.

Prime dApps DeFi cover products on Neptune Mutual

Parametric cover makes sense for blockchain projects because it empowers the community of those projects to mitigate security risk. It also demonstrates to communities a mature and responsible attitude of the project developer in relation to a commitment towards high level security and a process to manage loss if an incident arises.

Parametric cover is different from the cover found on many other cover protocols in that it does not require individual claims processing.

You can learn more about how parametric cover compares to discretionary cover and what benefits they provide in the blockchain space.

Backed by a Diversified Cover Pool

One of the main standout features of the Prime dApps basket is that cover products are underwritten with capital from a single diversified cover pool. This means that the underwriting capital for all seven DeFi projects listed under Prime dApps is sourced from a single cover pool.

Capital is provided to cover pools in stablecoin (USDC). This helps ensure that the underwriting capital does not fluctuate in value as a result of cryptocurrency / digital token price volatility.

It’s important to note that cover policies can only be purchased directly with the individual projects (as identified by their corresponding cards) within the portfolio of a diversified cover pool. In contrast, liquidity can be provided by users to the diversified cover pool and this liquidity is allocated across all of the different cover products.

Diversified cover pools help enhance underwriting capital provision for projects that may not be large enough, or popular enough to warrant a dedicated cover pool, or for low risk projects where policy premiums might be insufficient to attract liquidity providers.

Learn more about diversified cover pools and how they help make cover products more accessible on Neptune Mutual.

Who Creates Diversified Cover Pools?

All cover pools in the marketplace are set up by cover creators. For diversified cover pools there are a range of specialist actors in the DeFi space that we are in touch with in relation to creating diversified pools.

In the case of dedicated cover pools it is likely that the cover creator will often be the project developer.

Accessing Prime dApps Cover Products on Neptune Mutual

Visit the Neptune Mutual marketplace at app.neptunemutual.com. Project cards are displayed under Cover Products. Here you’ll find the cards for all seven cover products under Prime dApps.

Click on any of the cards to reveal all the information about that specific project and the corresponding cover policy. For instance, the Balancer V2 cover product provides cover that mitigates the loss of assets resulting from a smart contract hack or code exploit for the Balancer project.

As a cover purchaser, you need to carefully review all the cover parameters to ensure that the policy matches your needs and expectations. For example, one of the parameters in the AAVE Ethereum Market V2 cover policy defines a minimum loss of 5M USD. All parameters are clearly outlined in the Purchase Policy page that can be accessed by clicking on each project card. It’s also very important for users to read the full terms and conditions of the marketplace.

DeFi Hacks and Exploits Continue to Rise

2022 has been quite a productive year for hackers and cybercriminals. Compared to 2021, crypto — project related hacks and scams went up no less than 94%! So far an estimated $3 billion USD worth of digital assets has been stolen by hackers in 2022.

A 2022 research conducted by Chainalyis has revealed that DeFi projects have been the most targeted by cybercriminals from 2021 to 2022.

In the year prior, centralized exchanges were the main targets of hackers. Security breaches in which hackers gained access to victims’ private keys were prevalent.

Over time, their attention has shifted to DeFi protocols. As of 2022 Q1, hacks on DeFi projects accounted for over 90% of the value stolen by cybercriminals.

DeFi protocols have been highly targeted for hacks and exploits in 2022 | Source: chainalysis.com

Code exploits are becoming increasingly common, but there are a whole number of other attack vectors that cybercriminals can use as well. Even protocols that have undergone extensive security audits have been hacked.

Conclusion

The bottom line is that hacks on blockchain projects are on the rise. We’ve even launched an Exploit Analysis section that decodes the latest hacks and exploits in the blockchain space. Regular security measures do not guarantee 100% security of your digital assets.

Mitigate your risk exposure today by taking out a cover policy. With the Prime dApps portfolio, users can now access parametric cover protection for seven different popular DeFi projects and of course users can also contribute liquidity to the diversified cover pool and benefit from a share of the policy revenues.

Cover products with dedicated cover pools for CeFi and Web 3 projects are also scheduled to launch on the Neptune Mutual marketplace in the coming weeks. Stay tuned for the update.

Check Out the Neptune Mutual Marketplace

Visit app.neptunemutual.com to access our parametric cover marketplace. There are several video tutorials available in Neptune Mutual’s YouTube channel on how to navigate and interact with the protocol.

About Us

Neptune Mutual project safeguards the Ethereum community from cyber threats. The protocol uses parametric cover as opposed to discretionary insurance. It has an easy and reliable on-chain claim process. This means that when incidents are confirmed by our community, resolution is fast.

Join us in our mission to cover, protect, and secure on-chain digital assets.

Official Website: https://neptunemutual.com
Blog: https://blog.neptunemutual.com/
Twitter: https://twitter.com/neptunemutual
Reddit: https://www.reddit.com/r/NeptuneMutual
Telegram: https://t.me/neptunemutual
Discord: https://discord.gg/2qMGTtJtnW
YouTube: https://www.youtube.com/c/NeptuneMutual
LinkedIn: https://www.linkedin.com/company/neptune-mutual

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Neptune Mutual

Neptune Mutual

Neptune Mutual provides you with guaranteed stablecoin liquidity to reduce risk exposure by hedging against capital risks and smart contract vulnerabilities.