The Future of DeFi Insurance Is Coming With iTrust By CoinQuora
The Future of DeFi Insurance Is Coming With iTrust
Following rapid growth, over $60 billion is now locked up in DeFi smart contracts, representing a sixty-fold increase in the last year alone. While impressive, it highlights the increasing need for affordable insurance cover in the space to protect against potential hacks, failures, and exploits.
All smart contracts are susceptible to these risks. External security audits can assist in the due diligence process, but if the industry is to scale to mass adoption insurance services will be required to provide more comprehensive risk protection.
Decentralized insurance protocols such as Nexus Mutual have made great strides in enabling community-owned DeFi protection cover, retaining the ethos of the sector by disintermediating insurance from centralized entities and rewarding stakers instead. However, the availability and affordability of cover is therefore limited proportionally to the number of protocol participants, and overall decentralized insurance currently only covers 2% of the total value locked in DeFi.
iTrust sets out to solve this, building a unique yield-optimizing application to increase decentralized insurance protocol adoption and scale to the needs of the whole DeFi market.
This article was first published on coinquora.com
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