Sturdy Finance Claim Announcement

*Lastest Update on Claim Eligibility on 04/07/2023

Sturdy Finance has been exploited on June 12 at 1:06 AM UTC resulting in 504ETH loss.

InsurAce’s Advisory Board has completed the investigation and recommends that this is not a Claimable Risk Event in relation to Sturdy Finance, following our Smart Contract Vulnerability Cover T&C, due to the following reasons below:

Root Cause from a Third Party

Root cause: Read-only Reentrancy vulnerability from Balancer wstETH/WETH Pool
Reference: Balancer Forum
The vulnerability is on Balancer’s smart contracts and not on Sturdy’s smart contracts.

Indirect Cause of Loss Due to Oracle Failure

Sturdy has issued a post-mortem indicating that the contributing factor resides in the custom oracle they have built. Based on the Cover Terms 5.1n, losses due to oracles (external or integrated) are not covered.

Due to the complicated nature of the exploit and the conflict in findings, users who submit their claims with accurate proof of loss will be eligible for voting. This ensures transparency and involves the community in determining if these claims should be paid out.

We will offer an extensive investigation report for all claims submitted before voting begins.

Claim Eligibility

Users held an active cover on June 12 at 1:06 AM UTC
Users who have lent WETH on the protocol and suffered a material loss (the resulting loss will factor in any amount they have borrowed (if any) and any compensation plans to affected users).

Claim Deadline:

Before the expiration of the earlier:

21 days after this announcement – 24 July 2023 23:59:59 GMT+8; or
15 days after the Cover Period has expired

Useful Docs:

Please refer to the evidence checklist for Smart Contract Vulnerability Cover when submitting your claims.
User Guide on how to make a claim.
Understand our Claim Settlement Process.

A Note for Existing Claims:

To date we have received one claim, however, the claim was submitted with insufficient evidence. We request that the claimant resubmit a claim with the required proof or contact our team for guidance.

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.