Check out this great instructional video by CryptoSetups on how you can take out insurance for your investments in Anchor Protocol by using InsurAce.io
Here is another explanation from Data Driven Investor
Read the full piece here
For years, one of the greatest hurdles the crypto community has tried to overcome is mass adoption. A critical point for mass adoption is security.
Once users feel secure and their assets are safe, a platform becomes much easier to trust and spread the word about. Thus, the crypto world has a massive need for insurance.
What is crypto insurance?
Just as fiat assets are protected by the FDIC, digital assets also need some kind of assurance in case of fraud or hacks.
Crypto insurance is that assurance — especially in the case of hacks and uncertain regulations. To be seen as equal to any other asset class, the industry needs insurance.
However, crypto insurance is generally different from regular fiat insurance. Particularly, DeFi insurance. With DeFi insurance, a community votes on whether or not a claim should be paid out from the pool. Usually, any staker in the insurance protocol can vote. In this way, DeFi insurance keeps the power to the people.
What insurance options exist for Terra’s Anchor Savings Account?
Luckily, insurance options are already evolving for Terra’s high-yielding savings protocol, Anchor. So far, we have options like Nexus Mutual and InsurAce.io, which I will review below so that you know:
- What the insurance covers
- How to become covered (Note: You will need a Metamask for both)
- How to file a claim
InsurAce.io Insurance for Anchor
InsurAce.io Protocol is a DeFi Insurance protocol that has quickly become the second-largest protocol in DeFi insurance. At the time of writing, the protocol has a $10.7 million market cap based on a circulating supply of 9.2 million INSUR tokens.
InsurAce.io’s “Smart Contract Cover” protects against:
- Smart contract hacks/ bugs
- Severe economic attacks
- Governance attacks
Currently, annual coverage for Anchor on InsurAce.io costs about 2.48% of your savings.
How to get covered by InsurAce.io
To buy cover, as a first time user, you follow these steps:
- Select ‘Buy Covers’ in the dashboard.
2. Input the smart contract address you wish to buy cover for
3. Click on your ‘cart’ in the bottom right-hand corner.
4. Enter the amount in ETH you would like as a fixed cover amount.
5. Enter the length of time you want the coverage to last.
6. Connect Web 3.0 wallet (Metamask), agree to terms & conditions, and click “Confirm”.
How to make a claim with InsurAce.io
Combining InsurAce + Unslashed, you could theoretically be fully covered on your Anchor savings account at only 3.8–4% per year. Considering Anchor earns a stable yield of around 18–22% annually, it seems like covering your ass in case of the unknown is well worth it!