UST De-Peg Affected Stakers Update: 10 Months On

Hello InsurAce Community!

It’s been almost a full year since we launched the Stakers’ Compensation Plan for those affected by the UST De-Peg incident in May 2022. We wanted to provide an update on the progress and address a few concerns that have been raised by some members of our community.

Over the past year, our team has been working tirelessly to increase the premiums and therefore the compensation for our stakers. Although the compensation has been lower than expected due to lower premiums collected in this period, we remain committed to ensuring that our stakers have an opportunity to recover some of their losses.

To recap, the initial target compensation amount was $6,957,484, which was reduced to $4,142,005.25089 after around 40% of staking capital was withdrawn by June 23, 2022. An additional compensation amount of $703,869.687278 was distributed to remaining stakers, bringing the total compensation amount to $4,845,874.93817.

At the end of March, the remaining compensation to be paid sat at just over $1,700,000

While our original goal was to reduce the losses incurred by stakers down to a maximum of 10% over the course of 12 months or less, the market conditions and lower premiums than anticipated have made it challenging to achieve that target within the desired timeframe.

That being said, our team has been working diligently to grow the premium pool and strengthen the InsurAce protocol. We’ve implemented various risk mitigation improvements and strategies to prevent future incidents and to ensure the platform remains resilient and secure. Our latest products, Post-Audit Cover, and Bridge Cover, as well as our upcoming Slashing Cover are also helping to bolster sales from our existing products.

We understand that this has been a difficult year for our stakers and we genuinely appreciate your continued support and patience. Rest assured that we are doing everything in our power to increase the premiums and stakers’ compensation. As always, our primary concern is the well-being of our community and the long-term success of the InsurAce protocol.

At this time we cannot say when we will manage to hit the original target. We are committed to the amount, but the final date will be longer than expected. The compensation payments are expected to remain consistent with the previous 2 months for the next few months at least.

We encourage you to visit the compensation website at InsurAce to connect your wallet and view your updated compensation amount. Remember that if you withdraw your stake or a portion of your stake, your compensation will be reduced proportionally.

We remain optimistic about the future and are confident that our efforts will ultimately benefit our community and the InsurAce ecosystem. Thank you for your understanding and for being a part of our journey.

Warm regards,

The InsurAce Team

About InsurAce

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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