InsurAce, a leading insurance protocol, is excited to announce the launch of a first-of-its-kind Bridge Cover product in partnership with LI.FI Bridge Aggregator, an innovative cross-chain liquidity protocol. This revolutionary product is designed to protect users from loss of funds during cross-chain transactions, providing an extra layer of security in the rapidly evolving world of decentralized finance (DeFi).
Bridge Cover will be live on Tuesday 18th April 2023.
Check it out now at https://app.insurace.io/bridge-cover
What is Bridge Cover?
Bridge Cover is a unique insurance product that compensates users for their Claimable Loss during a Specified Bridge Transaction, subject to the terms and conditions of the policy. In simple terms, if your funds are lost during a cross-chain transfer due to a malfunction, hack, or vulnerability exploit of the Specified Bridge, Bridge Cover provides compensation up to the Specified Cover Amount.
Over the last six months, InsurAce and LI.FI Bridge Aggregator has been relentlessly working together, driven by a shared vision of creating a safer and more secure web3 environment for the ever-growing DeFi community.
Combining InsurAce’s expertise in insurance solutions and LI.FI Bridge Aggregator‘s multi-chain bridge solution, these two industry leaders have devoted countless hours to research, development, and collaboration, all in pursuit of crafting the perfect insurance product tailored for cross-chain transactions. The result of their hard work and dedication is the groundbreaking Bridge Cover, a first-of-its-kind solution that promises to reshape the landscape of DeFi insurance, providing users with the much-needed protection and peace of mind they deserve as they venture into the exciting world of Web3.
Blockchain bridges have emerged as a critical component in the DeFi ecosystem, enabling seamless interoperability between different blockchain networks. However, despite their revolutionary potential, these bridges are not without risks.
Some of the most common risks associated with blockchain bridges include vulnerabilities in the underlying smart contracts, the potential for hacks or exploits, and errors in the bridge’s implementation or design. In addition, issues with the consensus mechanisms, oracle manipulation, or errors in the data provided by decentralized exchanges (DEXs) can lead to inaccuracies in fund transfers or slippage calculations. These risks can result in the permanent loss of funds, reduced confidence in the DeFi space, and ultimately hinder the widespread adoption of cross-chain transactions. This is precisely why the introduction of a specialized insurance solution like Bridge Cover is so vital, offering users much-needed protection against these inherent risks in the rapidly evolving world of decentralized finance.
Upon notification of a possible Claimable Risk Event, InsurAce and LI.FI Bridge Aggregator will investigate and verify the event. The teams will then make an announcement through their social media accounts and channels to confirm or disconfirm the occurrence of a Claimable Risk Event or extend the investigation time.
Claims must be submitted within the specified Claim Deadline, after which there shall be no Claim under the Cover.
Claimants must submit their Proof of Loss and Ownership within seven (7) days from the day of Claim submission. The Advisory Board will create a Claim Investigation Report containing the investigation findings, draw a conclusion, and make a Cover Payout decision for valid Claims only (“Claim Outcome”).
Claims submitted before the Claim Deadline and after the release of the Claim Outcome have seven (7) days from the day of Claim submission to submit Proof of Loss and Ownership. The Advisory Board will determine the validity of such Claims based on the Claim Outcome.
If a Claim is approved, payments will be made from the Bridge Cover Fund in accordance with the criteria set in the Claim Outcome or Appeal decision to successful Claimants. The Protocol is not responsible for any differences between the market value of tokens used in making Cover Payouts at the time of the Payouts and the time the Claimants receive them.
Proof of Loss and Ownership:
Complete and eligible benefits will not be payable unless all Proof of Loss and Ownership has been submitted and agreed upon by the Protocol. Proof of Loss and Ownership may include, but is not limited to:
- The Specified Bridge Transaction identification number from LI.FI Bridge Aggregator Protocol.
- Snapshots and links to the on-chain record of the slippage quoted by LI.FI Bridge Aggregator Protocol in respect of the Specified Bridge Transaction.
- Snap shots and links to the on-chain record of the source and destination chain of the Specified Bridge Transaction.
- Snapshots and links to the on-chain record of the timestamp for the start and the end of the Specified Bridge Transaction.
- A report from a Professional Security Firm describing the Claimable Risk Event.
- References to any relevant on-chain transactions.
- Any other evidence deemed necessary by the Protocol.
The Cover will automatically terminate during the earlier of:
- The occurrence of a Claimable Risk Event.
- The Cover having expired, matured, or lapsed.
The innovative Bridge Cover product by InsurAce in partnership with LI.FI Bridge Aggregator is a game-changer in the DeFi insurance landscape. This new product aims to protect users from the inherent risks associated with cross-chain transactions, providing a much-needed safety net for those venturing into this rapidly evolving space. The comprehensive coverage, claims procedure, and thorough proof of loss and ownership requirements ensure a transparent, secure, and seamless experience for users.
As the DeFi ecosystem continues to grow and develop, products like Bridge Cover will play a crucial role in fostering trust and encouraging wider adoption. We invite you to take advantage of this cutting-edge insurance solution and experience the peace of mind that comes with knowing your cross-chain transactions are safeguarded. To learn more about Bridge Cover and how to purchase it, visit InsurAce and LI.FI Bridge Aggregator websites, and join their respective communities for updates and discussions.
Here’s to a more secure and confident future in the DeFi space! Don’t miss out on this groundbreaking opportunity to enhance your digital asset protection with InsurAce and LI.FI‘s innovative Bridge Cover product. Happy bridging!
About LI.FI Bridge Aggregator
Overall, LI.FI Bridge Aggregator aims to unify the fragmented crypto landscape.
InsurAce, a decentralized global risk cover protocol, offers mutual protection for digital assets against risks such as hacking, smart contract bugs, and stablecoin de-pegging. The platform features two membership-governed mutual pools and uses the $INSUR token for membership rights. With smart contracts issuing covers and a seamless user experience, the need for intermediaries is eliminated. The platform’s unique selling points include Low Fee Portfolio Cover, a Wide Product Range, SCR Mining, and Reliable Transparent Payouts.
InsurAce ‘s innovative approach includes portfolio-based coverage for a diversified risk management tool, support for DeFi protocols across multiple blockchains, and permissionless access for users. InsurAce is committed to continuous evolution, working on fair claims handling, adaptable coverage options, and collaboration with other DeFi protocols.
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Read More about InsurAce: https://www.insurace.io/blog