Cover types
There are various types of available covers
Each decentralized project is subject to a different type of risk which needs to be covered. The table shows an overview of what risks can be covered by different types of products.
If you want to learn more, explore this Medium article: https://brightunion.medium.com/exploring-the-defi-coverages-aefe8803155d
Cover types | What risk is covered? | Example projects |
Protocol hack and failure | In case the user has financial loss due to failure of the protocol caused by code, governance and oracle failures | Compound, Uniswap |
Yield de-pegging | In case the market price of a yield tokens deviates from the face value for a significant amount of time | Curve, Yearn |
Stablecoin de-pegging | In case the market price of a stable coin deviates from the underlying currency for a significant amount of time | DAI, USDT |
Custodian Cover | Protects against hacks and halted withdrawals at crypto wallets | Binance, Kraken |
IDO event risk | t.b.d. | t.b.d. |