DeFi Insurance at its Best: Bundled Covers
DeFi has lost over $1.2B to hacks in 2022 alone, almost 7 times higher than Q1 2021’s losses totaling $155M — which was already a huge amount of funds to be lost. It is also worth remembering that as crypto and its adoption grow, both the quantity and severity of DeFi hacks are also aggressively increasing in a snowball effect.
While this increase highlights the importance of DeFi insurance, the complexity of some hacker attacks requires broader coverage given the fact that hackers constantly evolve their methods and target multiple smart contracts to carry out their malicious attacks.
Bundled covers for complete protection
Smart contract hacks often target multiple asset types. Take the Beanstalk Farms hack for example. After taking a flash loan of a billion-dollar and using it to gain enough voting power to manipulate the protocol, attackers managed to drain all funds from Beanstalk Farms. It resulted in BEAN- the stablecoin of the protocol breaking its peg and losing almost all its value.
Affected users could have benefited from a bundled cover involving flash loan attacks, governance exploits, and depeg protection. The absolute best thing about bundled covers is that they provide coverage against multiple dangers, hence lowering the risk significantly.
For maximum protection, our Cover Portal allows you to opt for combined cover — coverage packages that involve at least two insurance coverage products that provide a holistic safety net for your crypto assets.
Users can purchase bundled covers at a lower price compared to individual insurance purchases — not just on the Cover portal, but anywhere else within the Defi insurance space. On top of that, Uno Re’s Cover Portal is completely gas-free, making it a cost-effective solution by removing the burden of paying gas fees for each transaction users make.
By purchasing a bundled cover, users can have a combination of Depeg coverage and other coverage plans depending on their preferences. Here are some examples of bundle covers Cover Portal will feature:
MIM + UST Depeg | Bundled Cover
By purchasing a bundle cover, users can now insure their entire portfolio and customize their own coverage bundles- no matter where their crypto is staked.
More details will follow soon.
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. The platform will break barriers to entry for the retail investor by doing away with the historic pre-requisite of absurdly high capital generally needed to invest into the market while also introducing much-needed transparency into the industry as a whole. Uno Re will also allow the community to propose innovative insurance products to the space, thus propelling a new generation of Insurtech companies powered by the Uno Re ecosystem.
