Decentralized insurance

Insurance is a risk management strategy where a person receives financial protection or reimbursement from an insurance company for losses in the event of an unfortunate event. It is common for individuals to purchase car, home, health and life insurance.

All cryptocurrencies locked in smart contracts are potentially vulnerable to smart contract exploits. While most projects have audited the code, we never know if smart contracts are really safe, and there is always the possibility of a hack that could result in a loss. Especially if DeFi protocols have large amounts of funds, the need to purchase insurance decentralized due to risks is a very important point.