Nexus Mutual: Empowering Investors with Crypto Insurance
Weekly Analyst Thoughts
Involvement in the decentralized finance (Defi) space carries the risk of loss through hacks and flash loan attacks. Since these sophisticated flash loan attacks began in March 2020, users have been more reluctant to provide liquidity to Defi platforms that have not undergone a security audit by an independent third party.
Users rely on audits for Defi platforms to protect their funds, while some take their asset protection further with incorporating decentralized smart contract insurance on Nexus Mutual. Users who want to buy smart contract insurance for decentralized platforms like Curve and Balancer can purchase a 1-year insurance plan for 2.6% of their assets staked on the Defi platform. Additionally, Nexus Mutual recently integrated insurance for centralized (Cefi) custodians like Celsius and Blockfi that protects users from withdrawal restrictions and hacking risk commonly seen on centralized crypto platforms. Below, see the insurance offerings of Nexus:
Although users can do their due diligence before investing with Defi and Cefi platforms, hacks do occur and one of the best ways users can protect themselves is by purchasing decentralized insurance coverage on Nexus Mutual.
Jacob Stelter | Blockchain Analyst