Why DeFi Needs Insurance
DeFi insurance provides protection against smart contract failures, hacks, and other crypto-specific risks that traditional insurance won’t cover.
Coverage Types
- Protocol Cover: Smart contract hacks
- Custody Cover: Exchange failures
- Depeg Cover: Stablecoin depegging
- Slashing Cover: Validator penalties
Leading Protocols
- Nexus Mutual: Largest, KYC required
- InsurAce: Multi-chain, no KYC
- Risk Harbor: Automated payouts
Key Takeaways
- DeFi insurance protects against hacks, depegs, and protocol failures
- Premiums typically range from 2-10% annually
- Consider insurance for large positions in newer protocols
- Insurance is one risk management tool – not a replacement for due diligence