DID YOU MISS OUR BIG ANNOUNCEMENT LAST WEEK? Let’s look at it again!
InsurAce & LI.FI launched the first cross-chain Bridge Cover solution in DeFi. According to a report by crypto data aggregator Token Terminal, cross-chain bridges are the victim of 50% of DeFi exploits. With over $2.5bn lost in two years on bridge exploits, trust in bridges is at an all-time low. We hope to solve this with our latest product which protects users when sending funds from one chain to another.
I. Addressing the Long-Standing Problems
Bridging in DeFi is a vital function for individuals and protocols alike. As the battle for L2 supremacy continues through 2023, we will see new chains developed to create new ecosystems, and new bridges built to service them. But to date, bridge exploits account for some of the largest hacks in DeFi. Most notably:
- Ronin Bridge (Axie Infinity): $615,000,000
- Poly Network: $600,000,000
- Wormhole Bridge: $326,000,000
- Nomad Bridge: $200,000,000
In 2022, 5 different bridges had topped $10bn in assets deposited to them. This shows that despite the risk, the demand for cross-chain bridges remains strong. But imagine how much more demand there would be if that risk could be mitigated…
II. The Solution that Everyone is Waiting for
Introducing the InsurAce x LI.FI Bridge Cover, a revolutionary new product that addresses bridge security issues and takes cross-chain asset safety to the next level. Bridge Cover protects transactions on LI.FI bridge against exploits and losses. All claims are handled by InsurAce, the leading DeFi insurance protocol with a reputation for security and a track record that includes payouts on the Elephant Money exploit, $UST de-peg event, FTX collapse, and Euler Finance hack. The latest product from InsurAce is the new Bridge Cover in association with LI.FI to secure cross-chain transactions.
III. What Can be Covered?
In one sentence, your unexpected loss on LI.FI when the bridge fails.
Look at our policy wordings for detail:
The Cover Purchaser may be compensated in respect of his/her funds transferred from the source chain over to the destination chain through the Specified Bridge and Specified Dexes of the Specified Bridge Transaction as arranged by LI.FI Protocol if:
the Specified Bridge permanently lost the funds or some of the funds due to a malfunction, hack, or vulnerability exploit of the Specified Bridge; or
the amount of funds received on the destination chain is lower than as agreed to by the Cover Purchaser upon the Specified Bridge Transaction’s execution (i.e. the latest signing of the Specified Bridge Transaction by the Cover Purchaser) due to an error in slippage reported by the Specified Dexes and/or Specified Bridge, thereby resulting in Claimable Loss to the Cover Purchaser within the Cover Period.
IV. Features and benefits
- The duration of the cover is from the execution of the Specified Bridge Transaction until the receipt of funds by the Cover Purchaser.
- The cover provides compensation for losses due to malfunction, hack, or vulnerability exploit of the bridge or errors in slippage reported by the underlying Dexes and/or Bridge, resulting in Claimable Loss to the Cover Purchaser within the Cover Period.
- The maximum compensation is the lower of the Claimable Loss or the Specified Cover Amount.
- The full terms and conditions of the cover, including eligibility to make a claim, scope of coverage, claims and evidence submission and procedure, cover exclusions, termination conditions, and cancellation terms, can be found in the Terms document.
- Claims and a fee on the claim amount must be submitted within 21 days of the Claimable Risk Event being publicly confirmed by the Protocol or within 15 days after the Cover Period has expired.
- Evidence of Proof of Loss and Ownership must be submitted within 7 days of claims submission.
- The Protocol will use commercially reasonable efforts to communicate any material changes to the Terms through its social media accounts and/or channels.
- The Protocol aims to maintain sufficient capital to meet its obligations, but there is no guarantee of full Cover Payout of all losses, and if there are insufficient staked assets in the Bridge Cover Fund, the obligation to make Cover Payout may lapse.
- The Protocol is not licensed or regulated by any regulator in any jurisdiction, and this cover is not a contract of insurance, it offers discretionary protection that is provided to Cover Purchasers, and the Advisory Board and the Claims Assessors have full and final discretion on whether or not a claim is approved for a successful Cover Payout.
Our team of experts has conducted extensive research and development to ensure that the InsurAce and LI.FI Bridge Cover is the best solution on the market.
V. Claim procedure
The Claims Procedure for the InsurAce x LI.FI Bridge Cover is:
- Upon notification of a possible Claimable Risk Event, the Advisory Board and LI.FI Protocol will investigate and verify the event for up to 7 days.
- Claims must be submitted within 21 days of the Protocol’s public confirmation of the Claimable Risk Event, or within 15 days after the Cover Period has expired.
- Claims will be automatically deemed invalid and rejected if submitted on the same loss event that has already been rejected twice by the Advisory Board.
- Claimants must submit Proof of Loss and Ownership within 7 days of claim submission.
- The Advisory Board will make a decision on valid claims and make a Cover Payout.
- A Claimant has 72 hours to file an appeal along with any fresh evidence and pay a fee on the amount claimed.
- The Advisory Board has the final decision on the appeal.
- If the 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.
However, this is just a summary of the key points; we recommend all users refer to the full document for the full details of the Claims Procedure.
VI. Official Launch
Bridge Cover was launched on 18th April 2023!
We are excited to launch the InsurAce and LI.FI Bridge Cover and invite you to join us for our official launch. This is an opportunity to experience the product first-hand and learn more about the technology and features that make it so unique.
Find out more here: https://app.insurace.io/bridge-cover
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